THE WHO’S BUYING SERIES BY THE NEW STRATEGIST EDITORS
at Restaurants and Carry-Outs 3rd EDITION
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THE WHO’S BUYING SERIES BY THE NEW STRATEGIST EDITORS
at Restaurants and Carry-Outs 3rd EDITION
W
New Strategist Publications, Inc. P.O. Box 242, Ithaca, New York 14851 800/848-0842; 607/273-0913 www.newstrategist.com
Copyright 2005. NEW STRATEGIST PUBLICATIONS, INC.
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording, or otherwise without written permission from the Publisher.
ISBN 1-885070-98-5
Printed in the United States of America
Contents About the Data in Who’s Buying at Restaurants and Carry-Outs .......................................................................................5 1.
Percent Reporting Expenditure and Amount Spent, Average Week 2003 ..................................9
Household Spending Trends: 2000 to 2003 .................................................................................................................10 2.
Household Spending Trends, 2000 to 2003 .................................................................................... 11
Household Spending at Restaurants and Carry-Outs, 2003 .............................................................................................14 3.
Restaurant and Carry-Out Spending, 2000 and 2003 ...................................................................16
Household Spending at Restaurants and Carry-Outs by Demographic Characteristic, 2003 4.
Restaurants and Carry-Outs: Average Spending by Age, 2003 ..................................................17
5.
Restaurants and Carry-Outs: Indexed Spending by Age, 2003 ..................................................18
6.
Restaurants and Carry-Outs: Total Spending by Age, 2003 ........................................................19
7.
Restaurants and Carry-Outs: Market Shares by Age, 2003 .........................................................20
8.
Restaurants and Carry-Outs: Average Spending by Income, 2003 ............................................21
9.
Restaurants and Carry-Outs: Indexed Spending by Income, 2003 ............................................22
10.
Restaurants and Carry-Outs: Total Spending by Income, 2003 ..................................................23
11.
Restaurants and Carry-Outs: Market Shares by Income, 2003 ...................................................24
12.
Restaurants and Carry-Outs: Average Spending by High-Income Consumer Units, 2003 ....25
13.
Restaurants and Carry-Outs: Indexed Spending by High-Income Consumer Units, 2003 ....26
14.
Restaurants and Carry-Outs: Total Spending by High-Income Consumer Units, 2003 .........27
15.
Restaurants and Carry-Outs: Market Shares by High-Income Consumer Units, 2003 ...........28
16.
Restaurants and Carry-Outs: Average Spending by Household Type, 2003 ............................29
17.
Restaurants and Carry-Outs: Indexed Spending by Household Type, 2003 ............................30
18.
Restaurants and Carry-Outs: Total Spending by Household Type, 2003 ..................................31
19.
Restaurants and Carry-Outs: Market Shares by Household Type, 2003 ...................................32
20.
Restaurants and Carry-Outs: Average Spending by Race and Hispanic Origin, 2003 ............33
21.
Restaurants and Carry-Outs: Indexed Spending by Race and Hispanic Origin, 2003 ............34
22.
Restaurants and Carry-Outs: Total Spending by Race and Hispanic Origin, 2003 .................35
23.
Restaurants and Carry-Outs: Market Shares by Race and Hispanic Origin, 2003 ...................36
24.
Restaurants and Carry-Outs: Average Spending by Region, 2003 .............................................37
25.
Restaurants and Carry-Outs: Indexed Spending by Region, 2003 .............................................38
26.
Restaurants and Carry-Outs: Total Spending by Region, 2003 ...................................................39
27.
Restaurants and Carry-Outs: Market Shares by Region, 2003 ....................................................40
28.
Restaurants and Carry-Outs: Average Spending by Education, 2003 .......................................41
29.
Restaurants and Carry-Outs: Indexed Spending by Education, 2003 .......................................42
30.
Restaurants and Carry-Outs: Total Spending by Education, 2003 .............................................43
31.
Restaurants and Carry-Outs: Market Shares by Education, 2003 ..............................................44
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 3
Household Spending at Restaurants and Carry-Outs by Product Category, 2003 .................................................................14 32.
Breakfast at Fast-Food Restaurants .................................................................................................46
33.
Breakfast at Full-Service Restaurants .............................................................................................48
34.
Dinner at Fast-Food Restaurants .....................................................................................................50
35.
Dinner at Full-Service Restaurants .................................................................................................52
36.
Lunch at Employer and School Cafeterias ....................................................................................54
37.
Lunch at Fast-Food Restaurants .....................................................................................................56
38.
Lunch at Full-Service Restaurants .................................................................................................58
39.
Snacks at Employer and School Cafeterias ...................................................................................60
40.
Snacks at Fast-Food Restaurants ....................................................................................................62
41.
Snacks at Full-Service Restaurants .................................................................................................64
42.
Snacks at Vending Machines and Mobile Vendors ......................................................................66
Appendix: Spending by Product and Service, 2003 Ranking ............................................................................................68 Glossary ............................................................................................................................................................75
4 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
ABOUT THE DATA IN Who’s Buying at Restaurants and Carry-outs Introduction The spending data in Who’s Buying at Restaurants and Carry-outs are based on the Bureau of Labor Statistics’ Consumer Expenditure Survey, an ongoing, nationwide survey of household spending. The Consumer Expenditure Survey is a complete accounting of household expenditures, including everything from big-ticket items, such as homes and cars, to small purchases like laundry detergent and videos. The survey does not include expenditures by government, business, or institutions. The lag time between data collection and dissemination is about two years. The data in this report are from the 2003 Consumer Expenditure Survey, unless otherwise noted. To produce this report, New Strategist Publications analyzed the Consumer Expenditure Survey’s average household spending data in a variety of ways, calculating household spending indexes, aggregate (or total) household spending, and market shares. Spending data by age, household income, household type, race, Hispanic origin, region, and education are shown in this report. These analyses are presented in two formats—for all product categories by demographic characteristic and for all demographic characteristics by product category.
Definition of consumer unit The Consumer Expenditure Survey uses the consumer unit rather than the household as the sampling unit. The term “household” is used interchangeably with the term “consumer unit” in this report for convenience, although they are not exactly the same. Some households contain more than one consumer unit. The Bureau of Labor Statistics defines onsumer unit as either (1) members of a household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two persons or more living together who pool their income to make joint expenditure decisions. The bureau defines financial independence in terms of “the three major expenses categories: housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent.” The Census Bureau uses household as its sampling unit in the decennial census and in the monthly Current Population Survey. The Census Bureau’s household “consists of all persons who occupy a housing unit. A house, an apartment or other groups of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live and eat with any other persons in the structure and there is direct access from the outside or through a common hall.” The definition goes on to specify that “a household includes the related family members and all the unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit or a group of unrelated persons sharing a housing unit as partners is also counted as a household. The count of households excludes group quarters.” Because there can be more than one consumer unit in a household, consumer units outnumber households by several million. Young adults under age 25 head most of the additional consumer units.
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 5
How to use the tables in this report The starting point for all calculations are the unpublished, detailed average household spending data collected by the Consumer Expenditure Survey. These numbers are shown on the report’s average spending tables and on each of the product-specific tables. New Strategist’s editors calculated the other figures in the report based on the average figures. The indexed spending tables and the indexed spending column (Best Customers) on the product-specific tables reveal whether spending by households in a given segment is above or below the average for all households and by how much. The total (or aggregate) spending tables show the overall size of the market. The market share tables and market share column (Biggest Customers) on the product-specific tables reveal how much spending each household segment controls. These analyses are described in detail below. • Average Spending. The average spending figures show the average annual spending of households at restaurants and carry-outs in 2003. The Consumer Expenditure Survey produces average spending data for all households in a segment, e.g., all households with a householder aged 25 to 34, not just those purchasing an item. When examining spending data, it is important to remember that by including both purchasers and nonpurchasers in the calculation, the average is less than the amount spent on the item by buyers. (See table 1 for the percentage of households that spent on restaurant meals during an average week in 2003 and how much the purchasers spent.) Because average spending figures include both buyers and nonbuyers, they reveal spending patterns by demographic characteristic. By knowing who is most likely to spend on an item, marketers can target their advertising and promotions more efficiently, and businesses can determine the market potential of a product or service in a city or neighborhood. By multiplying the average amount households spend on full-service dinners by the number of households in an area, for example, a restaurant owner can estimate the potential size of the local sit-down dining market. • Indexed Spending (Best Customers). The indexed spending figures compare the spending of each household segment with that of the average household. To compute the indexes, New Strategist divides the average amount each household segment spends on an item by average household spending, and multiplies the resulting figure by 100. An index of 100 is the average for all households. An index of 125 means the spending of a household segment is 25 percent above average (100 plus 25). An index of 75 indicates spending that is 25 percent below the average for all households (100 minus 25). Indexed spending figures identify the best customers for a product or service. Households with an index of 178 for fastfood lunches, for example, are a strong market for this product. Those with an index below 100 are either a weak or an underserved market. Spending indexes can reveal hidden markets—household segments with a high propensity to buy a particular product or service but which are overshadowed by household segments that account for a larger share of the market. Householders aged 65 to 74, for example, account for 12 percent of the market for full-service breakfasts versus a larger 15 percent share accounted for by householders aged 25 to 34. But a look at the indexed spending figures reveals that, in fact, the older householders are the better customers. Householders aged 65 to 74 spend 18 percent more than the average household on full-service breakfasts, while householders aged 25 to 34 spend 11 percent less than the average household on this item. The owners of restaurants can use this information to target their best customers.
6 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Note that because of sampling errors, small differences in index values may not be significant. But the broader patterns revealed by indexes can guide marketers to the best customers. • Total (Aggregate) Spending. To produce the total (aggregate) spending figures, New Strategist multiplies average spending by the number of households in a segment. The result is the dollar size of the total household market and of each market segment. All totals are shown in thousands of dollars. To convert the numbers in the total spending tables to dollars, you must append “000” to the number. For example, households headed by people aged 45 to 54 spent more than $14 billion ($14,417,090,000) on full-service dinners in 2003. When comparing the total spending figures in this report with total spending estimates from the Bureau of Economic Analysis, other government agencies, or trade associations, keep in mind that the Consumer Expenditure Survey includes only household spending, not spending by businesses or institutions. Sales data also will differ from household spending totals because sales figures for consumer products include the value of goods sold to industries, government, and foreign markets, which can be a significant proportion of sales. • Market Shares (Biggest Customers). New Strategist produces market share figures by converting total (aggregate) spending data into percentages. To calculate the percentage of total spending on an item that is controlled by a demographic segment—i.e., its market share—the segment’s total spending on the item is divided by aggregate household spending on the item. Market shares reveal the biggest customers—the demographic segments that account for the largest share of spending on a particular product or service. In 2003, for example, married couples with children at home accounted for 39 percent of spending on fast-food dinners, a much greater proportion than their 25 percent share of consumer units. By targeting only these consumers, fastfood restaurants can reach a large proportion of their customers. There’s a danger here, however. By single-mindedly targeting the biggest customers, businesses cannot nurture potential growth markets. With competition for customers more heated than ever, targeting potential markets is increasingly important to business survival. • Product-Specific Tables. The product-specific tables reveal at a glance the demographic characteristics of spending by individual product category. These tables show average spending, indexed spending (Best Customers), and market shares (Biggest Customers) by age, income, household type, race and Hispanic origin, region, and education. If you want to see the spending pattern for an individual product at a glance, these are the tables for you.
History and methodology of the Consumer Expenditure Survey The Consumer Expenditure Survey (CEX) is an ongoing study of the day-to-day spending of American households. In taking the survey, government interviewers collect spending data on products and services as well as the amount and sources of household income, changes in savings and debt, and demographic and economic characteristics of household members. The Bureau of the Census collects data for the CEX under contract with the Bureau of Labor Statistics (BLS), which is responsible for analysis and release of the survey data. Since the late 19th century, the federal government has conducted expenditure surveys about every ten years. Although the results have been used for a variety of purposes, their primary application is to track consumer prices. In 1980, the CEX became a continuous survey with annual release of data (with a lag time of about two years between data collection and release). The survey is used to update prices for the market basket of products and services used in calculating the Consumer Price Index. WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 7
The CEX consists of two separate surveys: an interview survey and a diary survey. In the interview portion of the survey, respondents are asked each quarter for five consecutive quarters to report their expenditures for the previous three months. The purchase of big-ticket items such as houses, cars, and major appliances, and recurring expenses such as insurance premiums, utility payments, and rent are recorded by the interview survey. The interview component covers about 95 percent of all expenditures. Expenditures on small, frequently purchased items are recorded during a two-week period by the diary survey. These detailed records include expenses for food and beverages purchased in grocery stores and at restaurants, as well as other items such as tobacco, housekeeping supplies, nonprescription drugs, and personal care products and services. The diary survey is intended to capture expenditures respondents are likely to forget or recall incorrectly over longer periods of time. Two separate, nationally representative samples are used for the interview and diary surveys. For the interview survey, about 7,500 consumer units are interviewed on a rotating panel basis each quarter for five consecutive quarters. Another 7,500 consumer units keep weekly diaries of spending for two consecutive weeks. Data collection is carried out in 105 areas of the country. The data are reviewed, audited, and cleaned by the BLS, and then weighted to reflect the number and characteristics of all U.S. consumer units. Like any sample survey, the CEX is subject to two major types of error. Nonsampling error occurs when respondents misinterpret questions or interviewers are inconsistent in the way they ask questions or record answers. Respondents may forget items, recall expenses incorrectly, or deliberately give wrong answers. A respondent may remember how much he or she spent at the grocery store but forget the items picked up at a local convenience store. Nonsampling error can also be caused by mistakes during the various stages of data processing and refinement. Sampling error occurs when a sample does not accurately represent the population it is supposed to represent. This kind of error is present in every sample-based survey and is minimized by using a proper sampling procedure. Standard error tables documenting the extent of sampling error in the CEX are available from the BLS at http://www.bls.gov/cex/csxstnderror.htm. Although the CEX is the best source of information about the spending behavior of American households, it should be treated with caution because of the above problems.
For more information To find out more about the Consumer Expenditure Survey, contact the CEX specialists at the Bureau of Labor Statistics at (202) 691-6900, or visit the CEXhome page at http://www.bls.gov/ cex/. The web site includes news releases, technical documentation, and current and historical summary-level CEX data. The detailed average spending data shown in this report are available from the BLS only by special request. For a comprehensive look at detailed household spending data for all products and services, see the tenth edition of Household Spending: Who Spends How Much on What available from New Strategist Publications in hardcopy or online at http://www.newstrategist.com or by calling 1800-848-0842. To download spending reports for individual product and service categories, visit the instant-answer service at http://www.nspend.com.
8 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 1. Percent Reporting Expenditure and
Amount Spent, Average Week 2003 (percent of consumer units reporting expenditure and amount spent by purchasers during an average week, 2003) average week percent reporting expenditure
amount spent by purchasers
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
71.1% 54.3
$49.57 23.30
43.1 18.7 1.1 11.3
16.49 21.66 9.73 12.43
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
39.6
35.80
23.1 23.6 0.1 0.5
17.98 42.18 37.50 9.62
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
52.0
9.19
44.1 9.8 17.9 5.8
7.88 5.22 3.34 3.45
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
28.3
12.74
20.2 10.2 0.7 2.2
8.85 16.93 4.29 3.60
Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 9
Household Spending Trends: 2000 to 2003 Between 2000 and 2003, spending by the average household barely changed, inching up by just 0.4 percent (or $178) to $40,817, after adjusting for inflation. At the same time, average household income grew a larger 7.2 percent. These figures reveal the caution of consumers during the sluggish economic recovery. The media may claim Americans spend beyond their means, but in fact the steady rise in consumer spending at the national level is primarily the result of demographic change—population growth and the aging of the baby-boom generation into the peak-earning and spending years. The anemic growth in average household spending between 2000 and 2003 should come as no surprise. American households have been cutting their spending on discretionary items for years as nondiscretionary expenses claim an ever-growing share of the household budget. Declines in discretionary spending are evident in the 2000 to 2003 trends. Spending on food away from home (primarily restaurant and take-out meals) fell 3 percent during those years, after adjusting for inflation. Spending on alcoholic beverages shrank 2 percent. Spending on apparel fell an enormous 17 percent, and the average amount devoted to reading material dropped by an even larger 19 percent. Spending on “other lodging,” a category that includes hotel and motel expenses, fell 13 percent. Although entertainment spending rose 3.5 percent overall between 2000 and 2003, spending on fees and admissions to entertainment events fell 10 percent. Americans cut back on many discretionary purchases because their nondiscretionary expenses—the spending they cannot control—was on the rise. After adjusting for inflation, the average household spent 10 percent more on property taxes in 2003 than in 2000. Mortgage interest expenses rose 5 percent despite falling interest rates because of the surge in homeownership. Out-of-pocket spending on health insurance increased 19 percent. Spending on vehicle insurance grew 9 percent. Spending on water and other public services increased 3 percent. Spending on education rose 16 percent. Contrary to popular perception, Americans are cautious spenders at the individual household level. The recession of 2001 followed by the slow recovery forced households to spend less on discretionary items to make ends meet. Rising energy costs—not yet reflected in these numbers—are likely to reduce discretionary spending even further. With the aging baby-boom generation entering its sixties and exiting the peak-spending years, average household spending is likely to remain modest. The U.S. economy will have to adapt. Fortunately, the tools are in hand—there’s no better way to prepare for the future than to understand household spending patterns.
10 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 2. Household Spending Trends, 2000 to 2003
(average annual spending of consumer units by product and service category, 2000 and 2003; percent change 2000–03; in 2003 dollars) 2003
2000
percent change 2000–03
Number of consumer units (in 000s)
115,356
109,367
5.5%
Average before-tax income
$51,128
$47,693
7.2
40,817
40,639
0.4
FOOD
5,340
5,510
–3.1
Food at home
3,129
3,227
–3.0
442
484
–8.7
Cereals and cereal products
150
167
–10.0
Bakery products
292
317
–8.0
825
849
–2.9
Beef
246
254
–3.2
Pork
171
178
–4.1
Other meats
102
108
–5.5
Poultry
145
155
–6.4
Fish and seafood
124
118
5.5
37
36
1.9
328
347
–5.5
Fresh milk and cream
127
140
–9.2
Other dairy products
201
206
–2.5
535
557
–3.9
Fresh fruits
171
174
–1.8
Fresh vegetables
172
170
1.3
Processed fruits
108
123
–12.1 –6.4
Average annual spending
Cereals and bakery products
Meats, poultry, fish, and eggs
Eggs Dairy products
Fruits and vegetables
Processed vegetables Other food at home Sugar and other sweets Fats and oils
84
90
999
990
0.9
119
125
–4.8
86
89
–3.0
Miscellaneous foods
490
467
5.0
Nonalcoholic beverages
268
267
0.4
36
43
–15.7
2,211
2,283
–3.1
Food prepared by household on trips Food away from home ALCOHOLIC BEVERAGES
391
397
–1.6
13,432
13,159
2.1
Shelter
7,887
7,599
3.8
Owned dwellings
5,263
4,916
7.1
Mortgage interest and charges
2,954
2,819
4.8
Property taxes
1,344
1,217
10.5
HOUSING
Maintenance, repairs, insurance, other expenses Rented dwellings Other lodging Utilities, fuels, and public services Natural gas Electricity
965
881
9.5
2,179
2,173
0.3 –12.8
445
511
2,811
2,659
5.7
392
328
19.5
1,028
973
5.6
Fuel oil and other fuels
110
104
6.2
Telephone services
956
937
2.1
Water and other public services
326
316
3.1
Household services
707
731
–3.2
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 11
Housekeeping supplies
2003
2000
percent change 2000–03
$529
$515
Laundry and cleaning supplies
132
140
Other household products
263
241
8.9
Postage and stationery
133
135
–1.2
Household furnishings and equipment
2.7% –5.7
1,497
1,655
–9.5
Household textiles
113
113
–0.2
Furniture
401
418
–4.0
52
47
10.6
196
202
–2.9
88
93
–5.3
648
781
–17.0
Floor coverings Major appliances Small appliances, miscellaneous housewares Miscellaneous household equipment APPAREL AND SERVICES
1,640
1,983
–17.3
Men and boys
372
470
–20.9
Men, aged 16 or older
282
368
–23.3
Boys, aged 2 to 15
89
103
–13.2
Women and girls
634
774
–18.1
Women, aged 16 or older
529
648
–18.4
Girls, aged 2 to 15
106
126
–15.9
81
88
–7.5
Footwear
294
366
–19.8
Other apparel products and services
258
284
–9.2
TRANSPORTATION
7,781
7,923
–1.8
Vehicle purchases
3,732
3,651
2.2
Cars and trucks, new
2,052
1,714
19.7
Children under age 2
Cars and trucks, used
1,611
1,891
–14.8
Gasoline and motor oil
1,333
1,379
–3.3
Other vehicle expenses
2,331
2,437
–4.3
Vehicle finance charges
371
350
5.9
Maintenance and repairs
619
667
–7.1
Vehicle insurance
905
831
8.9
Vehicle rental, leases, licenses, other charges
436
589
–25.9
Public transportation
385
456
–15.6
HEALTH CARE
2,416
2,207
9.5
Health insurance
1,252
1,050
19.2
Medical services
591
607
–2.6
Drugs
467
444
5.1
Medical supplies
107
106
1.2
2,060
1,990
3.5
Fees and admissions
494
550
–10.2
Television, radio, sound equipment
730
664
9.9
Pets, toys, and playground equipment
378
357
6.0
Other entertainment supplies, services
457
420
8.9
PERSONAL CARE PRODUCTS AND SERVICES
527
603
–12.5
READING
127
156
–18.6
EDUCATION
783
675
16.0
TOBACCO PRODUCTS AND SMOKING SUPPLIES
290
341
–14.9
ENTERTAINMENT
MISCELLANEOUS
606
829
–26.9
CASH CONTRIBUTIONS
1,370
1,273
7.6
PERSONAL INSURANCE AND PENSIONS
4,055
3,594
12.8
397
426
–6.9
Pensions and Social Security
3,658
3,168
15.5
PERSONAL TAXES
2,532
3,330
–24.0
Federal income taxes
1,843
2,573
–28.4
State and local income taxes
502
600
–16.4
Other taxes
187
156
19.9
Life and other personal insurance
12 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
GIFTS FOR NONHOUSEHOLD MEMBERS
2003
2000
percent change 2000–03
$1,007
$1,157
Food
78
75
Alcoholic beverages
16
15
7.0
220
311
–29.2
Housekeeping supplies
42
42
0.8
Household textiles
13
14
–6.4
Appliances and misc. housewares
25
30
–16.4
7
9
–18.1
18
22
–19.8
Miscellaneous household equipment
57
75
–23.8
Other housing
85
150
–43.2
Apparel and services
225
261
–13.7
Males, aged 2 or older
56
73
–22.9
Females, aged 2 or older
80
91
–11.9
Children under age 2
39
44
–11.0
Other apparel products and services
50
55
–8.2
Jewelry and watches
26
21
21.7
All other apparel products and services
25
32
–22.0
Transportation
60
75
–19.8
Health care
48
41
18.3
Entertainment
69
100
–31.3
Toys, games, hobbies, and tricycles
26
32
–18.9
Other entertainment
43
68
–37.1
Personal care products and services
16
20
–21.2
1
2
–53.2
200
161
24.0
74
95
–22.2
Housing
Major appliances Small appliances and misc. housewares
Reading Education All other gifts
–13.0% 4.3
Note: The Bureau of Labor Statistics uses consumer unit rather than household as the sampling unit in the Consumer Expenditure Survey. For the definition of consumer unit, see the glossary. Spending by category will not add to total spending because gift spending is also included in the preceding product and service categories and personal taxes are not included in the total. Source: Bureau of Labor Statistics, 2000 and 2003 Consumer Expenditure Surveys, Internet site http://www.bls.gov/cex/home.htm; calculations by New Strategist
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 13
Household Spending at Restaurants and Carry-Outs, 2003 Between 2000 and 2003, average household spending at restaurants and carry-outs fell 2 percent, after adjusting for inflation. Behind the decline was a 1 percent drop in spending on dinners and a larger 7 percent drop in spending on lunches. In contrast, spending on snacks increased 2 percent and spending on breakfasts was up 9 percent. The Bureau of Labor Statistics reports that during an average week of 2003, fully 71 of households purchased food from restaurants and carry-outs, spending an average of $49.57. The average household spent $1,832 at restaurants and carry-outs in 2003. This figure was 59 percent as much the average household spent on groceries ($3,129). Among some demographic segments, the proportion of the food dollar devoted to restaurants is even higher. Householders under age 25 spend 80 percent as much eating out as on groceries. Among households with incomes of $100,000 or more, the figure is 85 percent. People who live alone spend 74 percent as much eating out as on groceries. Households devote slightly more of their restaurant dollars to dinners (40 percent) than to lunches (36 percent). Snacks account for another 14 percent and breakfasts for 10 percent. The average household devotes almost equal shares of the eating-out dollar to full-service and to fast-food restaurants. Of the $1,832 spent on eating out by the average household in 2003, fast-food restaurants captured a 47 percent share, while full-service restaurants took 46 percent. The remainder was spent at employer and school cafeterias, vending machines, and mobile vendors. Older Americans, particularly empty-nesters, are far more likely to choose full-service over fast-food restaurants. Among householders under age 25, fast-food meals claim 57 percent of the restaurant budget, while full-service gets just 35 percent. The fast-food share declines with age and drops below the full-service share in the 55-to-64 age group (39 percent fast-food versus 56 percent full-service). The demands of children explain changing restaurant preferences with age. Among household types, single parents and married couples with children under age 18 are least likely to devote their dining-out dollars to full-service restaurants. In contrast, the household type most likely to spend its dining-out dollars in full-service restaurants is married couples without children at home (most of them empty-nesters). Couples without children at home devote fully 60 percent of their restaurant dollars to full-service establishments and only 37 percent to fast food.
Spending by age Not surprisingly, the middle-aged, who have the highest incomes and the largest households, spend the most at restaurants and carry-outs. Overall, householders aged 35 to 54 spend 19 to 22 percent more than the average household at restaurants and carry-outs. But householders aged 25 to 44 spend the most on fast-food breakfasts, lunches, and dinners, while householders aged 45 to 54 spend the most on full-service lunches and dinners. Householders aged 65 to 74 are the biggest spenders on full-service breakfasts.
Spending by household income The most affluent households spend much more than average at restaurants and carry-outs. In 2003, households with incomes of $100,000 or more spent more than twice the average at res-
14 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
taurants and carry-outs. The $100,000-or-more income group accounts for 24 percent of household spending on eating out—double their 12 percent share of households. These affluent households control one-third of spending on full-service restaurant dinners.
Spending byhHousehold type Married couples with school-aged children spend more on eating out than any other household type—44 percent more than average in 2003. Married couples without children at home (most of them empty-nesters) spend 40 percent more than average on full-service lunches, 46 percent more on full-service dinners, and 46 percent more on full-service breakfasts. Single parents are aboveaverage spenders on lunch from employer and school cafeterias.
Spending by race and Hispanic origin Asian households spend 28 percent more than the average household on restaurant meals—more than any other racial or ethnic group. Hispanic households spend an average amount, while black households spend 35 percent less than average eating out. Asians are the biggest spenders on both fast-food and full-service lunches. They are also the biggest spenders on full-service dinners. Hispanics spend the most on fast-food dinners and fast-food breakfasts, with indexes of 117 and 125, respectively. Blacks spend more than the average household at employer and school cafeterias.
Spending by region Average annual household spending on restaurant and carry-out food is highest in the West ($2,001) and lowest in the South ($1,671). Households in the Northeast are the biggest spenders on full-service dinners (29 percent above average) but only average spenders on full-service lunches. Households in the West are the biggest spenders on full-service breakfasts.
Spending by education Spending on eating out rises with education, in part because educated householders have higher incomes. College graduates spend 36 percent more than the average household at restaurants and carry-outs, with spending 56 to 65 percent above average on full-service lunches and dinners. College graduates control more than 40 percent of spending on full-service lunches and dinners.
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 15
Table 3. Restaurant and Carry-Out Spending, 2000 and 2003 (average annual and percent distribution of household spending at restaurants and carry-outs, 2000 and 2003; percent change in spending, 2000–03; in 2003 dollars) 2003 average household spending AVERAGE HOUSEHOLD SPENDING AT RESTAURANTS AND CARRY-OUTS
Dinner At full-service restaurants At fast food, take-out, delivery, buffets, and cafeterias (except employer and school)
$1,831.97 737.51 517.42 215.93 369.02
2000 percent distribution 100.0% 40.3 28.2 11.8 20.1
average household spending (in 2003$) $1,870.26 745.82 521.12 221.10 393.21
percent distribution 100.0% 39.9 27.9 11.8 21.0
percent change 2000–03 –2.0% –1.1 –0.7 –2.3 –6.2
Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At employer and school cafeterias
658.16
35.9
708.32
37.9
–7.1
369.02 210.10 73.48
20.1 11.5 4.0
393.21 222.38 85.76
21.0 11.9 4.6
–6.2 –5.5 –14.3
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At vending machines, mobile vendors At full-service restaurants At employer and school cafeterias
248.42 180.26 369.02 31.33 26.66 10.16
13.6 9.8 20.1 1.7 1.5 0.6
243.31 169.41 393.21 41.16 21.53 11.21
13.0 9.1 21.0 2.2 1.2 0.6
2.1 6.4 –6.2 –23.9 23.8 –9.4
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants
187.89 92.82 369.02 89.42
10.3 5.1 20.1 4.9
172.81 82.40 393.21 85.10
9.2 4.4 21.0 4.5
8.7 12.6 –6.2 5.1
Note: Numbers may not add to totals by category because not all subcategories are shown. Source: Bureau of Labor Statistics, 2000 and 2003 Consumer Expenditure Surveys; calculations by New Strategist
16 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 4. Restaurants and Carry-Outs: Average spending by age, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2003) total consumer units 115,356 2.5 $51,128.00 40,817.33
under 25 8,584 1.8 $20,680.00 22,395.53
25 to 34 19,737 2.9 $50,389.00 40,525.22
35 to 44 24,413 3.2 $61,091.00 47,175.06
45 to 54 23,131 2.6 $68,028.00 50,100.86
55 to 64 16,580 2.1 $58,672.00 44,190.65
65 to 74 11,495 1.9 $35,314.00 33,629.17
75+ 11,417 1.5 $25,492.00 25,016.38
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
1,831.97 658.16
1,406.19 505.21
2,037.30 763.29
2,234.62 859.39
2,176.38 780.16
1,706.30 550.75
1,379.39 444.14
829.69 265.57
369.02 210.10 5.56 73.48
347.37 117.93 2.13 37.77
480.77 203.65 7.50 71.36
469.27 229.30 6.31 154.51
431.68 254.33 6.80 87.35
277.14 226.03 5.46 42.12
226.75 198.55 3.46 15.38
109.86 147.94 2.82 4.95
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
737.51
498.38
784.50
847.75
877.28
790.27
611.42
355.18
215.93 517.42 1.32 2.83
175.48 307.00 3.69 12.21
264.57 516.44 – 3.48
291.05 554.11 1.37 1.23
248.48 623.28 1.76 3.76
179.50 609.65 – 1.12
120.37 488.56 1.56 0.93
77.85 274.93 2.40 –
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
248.42
264.43
290.46
307.91
302.26
200.50
157.13
76.73
180.26 26.66 31.33 10.16
189.26 22.04 41.21 11.92
214.00 27.61 40.22 8.63
222.59 26.57 41.71 17.04
218.71 32.71 38.77 12.07
145.65 24.26 21.64 8.95
116.33 25.38 11.66 3.75
52.41 20.74 2.84 0.75
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
187.89
138.18
199.06
219.57
216.69
164.78
166.71
132.21
92.82 89.42 1.37 4.27
88.14 45.21 1.09 3.74
113.99 79.89 1.56 3.63
116.48 93.74 1.83 7.52
109.90 101.22 1.07 4.51
65.54 91.95 2.23 5.07
59.63 105.44 0.51 1.12
43.88 87.45 0.52 0.34
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 17
Table 5. Restaurants and Carry-Outs: Indexed spending by age, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2003; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total consumer units $40,817 100
under 25 $22,396 55
25 to 34 $40,525 99
35 to 44 $47,125 116
45 to 54 $50,101 123
55 to 64 $44,191 108
65 to 74 $33,629 82
75+ $25,016 61
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100 100
77 77
111 116
122 131
119 119
93 84
75 67
45 40
100 100 100 100
94 56 38 51
130 97 135 97
127 109 113 210
117 121 122 119
75 108 98 57
61 95 62 21
30 70 51 7
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
68
106
115
119
107
83
48
100 100 100 100
81 59 280 431
123 100 – 123
135 107 104 43
115 120 133 133
83 118 – 40
56 94 118 33
36 53 182 –
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
106
117
124
122
81
63
31
100 100 100 100
105 83 132 117
119 104 128 85
123 100 133 168
121 123 124 119
81 91 69 88
65 95 37 37
29 78 9 7
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
74
106
117
115
88
89
70
100 100 100 100
95 51 80 88
123 89 114 85
125 105 134 176
118 113 78 106
71 103 163 119
64 118 37 26
47 98 38 8
Average spending of CU, total Average spending of CU, index
Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
18 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 6. Restaurants and Carry-Outs: Total spending by age, 2003 (total annual spending on restaurant and carry-out food, by consumer unit (CU) age group, 2003; consumer units and dollars in thousands)
Number of consumer units Total spending of all CUs
total consumer units 115,356 $4,708,523,919
RESTAURANTS AND CARRY-OUTS 211,328,731 Lunch 75,922,705 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 42,568,671 At full-service restaurants 24,236,296 At vending machines, mobile vendors 641,379 At employer and school cafeterias 8,476,359
under 25 8,584 $192,243,230
25 to 34 35 to 44 45 to 54 19,737 24,413 23,131 $799,846,267 $1,151,684,740 $1,158,882,993
55 to 64 16,580 $732,680,977
65 to 74 11,495 $386,567,309
75+ 11,417 $285,612,010
12,070,735 4,336,723
40,210,190 15,065,055
54,553,778 20,980,288
50,341,846 18,045,881
28,290,454 9,131,435
15,856,088 5,105,389
9,472,571 3,032,013
2,981,824 1,012,311 18,284 324,218
9,488,957 4,019,440 148,028 1,408,432
11,456,289 5,597,901 154,046 3,772,053
9,985,190 5,882,907 157,291 2,020,493
4,594,981 3,747,577 90,527 698,350
2,606,491 2,282,332 39,773 176,793
1,254,272 1,689,031 32,196 56,514
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
85,076,204
4,278,094
15,483,677
20,696,121
20,292,364
13,102,677
7,028,273
4,055,090
24,908,821 59,687,502 152,270 326,457
1,506,320 2,635,288 31,675 104,811
5,221,818 10,192,976 – 68,685
7,105,404 13,527,487 33,446 30,028
5,747,591 14,417,090 40,711 86,973
2,976,110 10,107,997 – 18,570
1,383,653 5,615,997 17,932 10,690
888,813 3,138,876 27,401 –
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
28,656,738
2,269,867
5,732,809
7,517,007
6,991,576
3,324,290
1,806,209
876,026
20,794,073 3,075,391 3,614,103 1,172,017
1,624,608 189,191 353,747 102,321
4,223,718 544,939 793,822 170,330
5,434,090 648,653 1,018,266 415,998
5,058,981 756,615 896,789 279,191
2,414,877 402,231 358,791 148,391
1,337,213 291,743 134,032 43,106
598,365 236,789 32,424 8,563
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
21,674,239
1,186,137
3,928,847
5,360,362
5,012,256
2,732,052
1,916,331
1,509,442
10,707,344 10,315,134 158,038 492,570
756,594 388,083 9,357 32,104
2,249,821 1,576,789 30,790 71,645
2,843,626 2,288,475 44,676 183,586
2,542,097 2,341,320 24,750 104,321
1,086,653 1,524,531 36,973 84,061
685,447 1,212,033 5,862 12,874
500,978 998,417 5,937 3,882
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 19
Table 7. Restaurants and Carry-Outs: Market shares by age, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer unit age groups, 2003)
Share of total consumer units Share of total before-tax income Share of total spending
total consumer units 100.0% 100.0 100.0
under 25 7.4% 3.0 4.1
25 to 34 17.1% 16.9 17.0
35 to 44 21.2% 25.3 24.5
45 to 54 20.1% 26.7 24.6
55 to 64 14.4% 16.5 15.6
65 to 74 10.0% 6.9 8.2
75+ 9.9% 4.9 6.1
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0 100.0
5.7 5.7
19.0 19.8
25.8 27.6
23.8 23.8
13.4 12.0
7.5 6.7
4.5 4.0
100.0 100.0 100.0 100.0
7.0 4.2 2.9 3.8
22.3 16.6 23.1 16.6
26.9 23.1 24.0 44.5
23.5 24.3 24.5 23.8
10.8 15.5 14.1 8.2
6.1 9.4 6.2 2.1
2.9 7.0 5.0 0.7
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
5.0
18.2
24.3
23.9
15.4
8.3
4.8
100.0 100.0 100.0 100.0
6.0 4.4 20.8 32.1
21.0 17.1 – 21.0
28.5 22.7 22.0 9.2
23.1 24.2 26.7 26.6
11.9 16.9 – 5.7
5.6 9.4 11.8 3.3
3.6 5.3 18.0 –
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
7.9
20.0
26.2
24.4
11.6
6.3
3.1
100.0 100.0 100.0 100.0
7.8 6.2 9.8 8.7
20.3 17.7 22.0 14.5
26.1 21.1 28.2 35.5
24.3 24.6 24.8 23.8
11.6 13.1 9.9 12.7
6.4 9.5 3.7 3.7
2.9 7.7 0.9 0.7
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
5.5
18.1
24.7
23.1
12.6
8.8
7.0
100.0 100.0 100.0 100.0
7.1 3.8 5.9 6.5
21.0 15.3 19.5 14.5
26.6 22.2 28.3 37.3
23.7 22.7 15.7 21.2
10.1 14.8 23.4 17.1
6.4 11.8 3.7 2.6
4.7 9.7 3.8 0.8
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
20 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 8. Restaurants and Carry-Outs: Average spending by income, 2003 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units (CU), 2003; complete income reporters only) total complete reporters
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
97,391 2.5 $51,128.00 42,741.66
27,100 1.8 $10,752.55 19,862.52
23,941 2.4 $29,072.57 31,684.32
8,891 2.6 $44,294.00 39,756.91
13,890 2.8 $58,900.00 49,788.99
5,121 3.0 $74,560.00 57,128.14
6,909 3.0 $88,832.00 65,957.39
11,537 3.1 $154,665.00 93,514.86
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
1,956.55 706.60
973.26 348.87
1,445.26 550.11
1,959.55 727.62
2,346.98 869.03
2,686.70 1,027.69
3,077.75 1,072.71
4,016.64 1,347.36
395.14 225.04 6.88 79.54
226.17 97.49 2.46 22.75
331.71 157.94 7.77 52.68
425.06 207.46 2.74 92.36
450.43 286.03 15.96 116.61
621.94 275.29 4.67 125.79
556.25 337.76 9.11 169.58
658.36 535.52 7.75 145.74
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
774.13
345.90
507.04
712.90
879.42
1,043.59
1,291.26
1,909.31
233.57 535.73 1.45 3.39
129.41 213.04 1.78 2.21
187.07 315.01 1.22 3.74
237.34 467.78 1.99 5.79
285.96 585.44 3.77 4.25
332.96 708.04 – 2.60
367.28 920.45 – 3.53
400.11 1,506.10 – 2.50
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
274.05
165.49
215.68
306.88
340.65
359.52
428.20
428.21
198.42 28.59 35.06 11.98
115.74 20.21 21.68 7.86
153.48 24.27 28.92 9.01
230.17 28.62 39.17 8.93
240.61 41.58 47.96 10.49
266.53 27.59 51.52 13.89
308.81 37.55 61.18 20.65
324.46 37.62 38.61 27.52
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
201.77
113.00
172.43
212.15
257.89
255.89
285.59
331.75
99.14 95.93 1.67 5.02
62.14 47.48 1.50 1.88
91.14 76.24 1.69 3.35
116.55 85.35 0.49 9.77
117.86 132.26 2.17 5.60
135.79 109.45 4.60 6.05
124.05 151.52 0.78 9.24
138.16 183.26 1.80 8.53
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 21
Table 9. Restaurants and Carry-Outs: Indexed spending by income, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by before-tax income of consumer unit, 2003; complete income reporters only; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total complete reporters
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
$42,742 100
$19,863 46
$31,684 74
$39,757 93
$49,789 116
$57,128 134
$65,957 154
$93,515 219
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100 100
50 49
74 78
100 103
120 123
137 145
157 152
205 191
100 100 100 100
57 43 36 29
84 70 113 66
108 92 40 116
114 127 232 147
157 122 68 158
141 150 132 213
167 238 113 183
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
45
65
92
114
135
167
247
100 100 100 100
55 40 123 65
80 59 84 110
102 87 137 171
122 109 260 125
143 132 – 77
157 172 – 104
171 281 – 74
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
60
79
112
124
131
156
156
100 100 100 100
58 71 62 66
77 85 82 75
116 100 112 75
121 145 137 88
134 97 147 116
156 131 175 172
164 132 110 230
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
56
85
105
128
127
142
164
100 100 100 100
63 49 90 37
92 79 101 67
118 89 29 195
119 138 130 112
137 114 275 121
125 158 47 184
139 191 108 170
Average spending of CU, total Average spending of CU, index
Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
22 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 10. Restaurants and Carry-Outs: Total spending by income, 2003 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units (CU), 2003; complete income reporters only; consumer units and dollars in thousands) total complete reporters
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
97,391 $4,162,653,009
27,100 $538,274,380
23,941 $758,554,310
8,891 $353,478,687
13,890 $691,569,071
5,121 $292,553,205
RESTAURANTS AND CARRY-OUTS 190,550,361 Lunch 68,816,481 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 38,483,080 At full-service restaurants 21,916,871 At vending machines, mobile vendors 670,050 At employer and school cafeterias 7,746,480
26,375,366 9,454,348
34,600,876 13,170,175
17,422,359 6,469,269
32,599,552 12,070,827
13,758,591 5,262,800
21,264,175 7,411,353
46,339,976 15,544,492
6,129,081 2,642,066 66,772 616,429
7,941,375 3,781,268 186,138 1,261,261
3,779,208 1,844,527 24,361 821,173
6,256,473 3,972,957 221,684 1,619,713
3,184,955 1,409,760 23,915 644,171
3,843,131 2,333,584 62,941 1,171,628
7,595,499 6,178,294 89,412 1,681,402
Number of consumer units Total spending of all CUs
$80,000– $99,999
$100,000 or more
6,909 11,537 $455,699,608 $1,078,880,940
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
75,393,295
9,373,782
12,139,002
6,338,394
12,215,144
5,344,224
8,921,315
22,027,709
22,747,616 52,175,280 141,217 330,155
3,506,918 5,773,386 48,221 59,896
4,478,669 7,541,737 29,153 89,551
2,110,190 4,159,032 17,693 51,479
3,971,984 8,131,762 52,365 59,033
1,705,088 3,625,873 – 13,315
2,537,538 6,359,389 – 24,389
4,616,069 17,375,876 – 28,843
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
26,690,004
4,484,885
5,163,605
2,728,470
4,731,629
1,841,102
2,958,434
4,940,259
19,324,322 2,784,409 3,414,528 1,166,744
3,136,421 547,799 587,527 213,026
3,674,488 581,098 692,358 215,660
2,046,441 254,460 348,260 79,397
3,342,073 577,546 666,164 145,706
1,364,900 141,288 263,834 71,131
2,133,568 259,433 422,693 142,671
3,743,295 434,022 445,444 317,498
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
19,650,582
3,062,423
4,128,095
1,886,226
3,582,092
1,310,413
1,973,141
3,827,400
9,655,344 9,342,719 162,643 488,903
1,683,943 1,286,766 40,781 50,934
2,182,040 1,825,201 40,572 80,282
1,036,246 758,847 4,357 86,865
1,637,075 1,837,091 30,141 77,784
695,381 560,493 23,557 30,982
857,061 1,046,852 5,389 63,839
1,593,952 2,114,271 20,767 98,411
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 23
Table 11. Restaurants and Carry-Outs: Market shares by income, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units, 2003; complete income reporters only) total complete reporters
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
Share of total consumer units Share of total before-tax income Share of total spending
100.0% 100.0 100.0
27.8% 5.9 12.9
24.6% 14.0 18.2
9.1% 7.9 8.5
14.3% 16.4 16.6
5.3% 7.7 7.0
7.1% 12.3 10.9
11.8% 35.8 25.9
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0 100.0
13.8 13.7
18.2 19.1
9.1 9.4
17.1 17.5
7.2 7.6
11.2 10.8
24.3 22.6
100.0 100.0 100.0 100.0
15.9 12.1 10.0 8.0
20.6 17.3 27.8 16.3
9.8 8.4 3.6 10.6
16.3 18.1 33.1 20.9
8.3 6.4 3.6 8.3
10.0 10.6 9.4 15.1
19.7 28.2 13.3 21.7
100.0
12.4
16.1
8.4
16.2
7.1
11.8
29.2
100.0 100.0 100.0 100.0
15.4 11.1 34.1 18.1
19.7 14.5 20.6 27.1
9.3 8.0 12.5 15.6
17.5 15.6 37.1 17.9
7.5 6.9 – 4.0
11.2 12.2 – 7.4
20.3 33.3 – 8.7
100.0
16.8
19.3
10.2
17.7
6.9
11.1
18.5
100.0 100.0 100.0 100.0
16.2 19.7 17.2 18.3
19.0 20.9 20.3 18.5
10.6 9.1 10.2 6.8
17.3 20.7 19.5 12.5
7.1 5.1 7.7 6.1
11.0 9.3 12.4 12.2
19.4 15.6 13.0 27.2
100.0
15.6
21.0
9.6
18.2
6.7
10.0
19.5
100.0 100.0 100.0 100.0
17.4 13.8 25.1 10.4
22.6 19.5 24.9 16.4
10.7 8.1 2.7 17.8
17.0 19.7 18.5 15.9
7.2 6.0 14.5 6.3
8.9 11.2 3.3 13.1
16.5 22.6 12.8 20.1
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
24 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 12. Restaurants and Carry-Outs: Average spending by high-income consumer units, 2003 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units (CU) with high incomes, 2003; complete income reporters only) total complete reporters
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
97,391 2.5 $51,128.00 42,741.66
11,537 3.1 $154,665.00 93,514.86
4,384 3.1 $108,087.00 75,601.50
3,151 3.1 $131,885.00 86,451.46
4,002 3.1 $223,634.00 118,674.11
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
1,956.55 706.60
4,016.64 1,347.36
3,501.12 1,120.56
3,813.56 1,377.01
4,734.74 1,570.91
395.14 225.04 6.88 79.54
658.36 535.52 7.75 145.74
635.27 352.08 12.63 120.58
625.19 526.06 5.24 220.51
709.21 742.28 4.39 115.03
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
774.13
1,909.31
1,695.72
1,644.60
2,347.03
233.57 535.73 1.45 3.39
400.11 1,506.10 – 2.50
378.18 1,317.32 – 0.23
368.21 1,267.65 – 6.52
448.72 1,896.47 – 1.84
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
274.05
428.21
355.19
428.81
507.14
198.42 28.59 35.06 11.98
324.46 37.62 38.61 27.52
275.83 23.51 37.79 18.06
318.50 32.30 35.74 42.26
381.95 57.10 41.73 26.36
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
201.77
331.75
329.65
363.15
309.66
99.14 95.93 1.67 5.02
138.16 183.26 1.80 8.53
146.59 171.74 2.30 9.02
151.36 201.39 0.01 10.39
118.75 181.71 2.65 6.55
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 25
Table 13. Restaurants and Carry-Outs: Indexed spending by high-income consumer units, 2003 (indexed average annual spending of consumer units (CU) with high incomes on restaurant and carry-out food, by before-tax income of consumer unit, 2003; complete income reporters only; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total complete reporters
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
$42,742 100
$93,515 219
$75,602 177
$86,451 202
$118,674 278
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100 100
205 191
179 159
195 195
242 222
100 100 100 100
167 238 113 183
161 156 184 152
158 234 76 277
179 330 64 145
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
247
219
212
303
100 100 100 100
171 281 – 74
162 246 – 7
158 237 – 192
192 354 – 54
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
156
130
156
185
100 100 100 100
164 132 110 230
139 82 108 151
161 113 102 353
192 200 119 220
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100
164
163
180
153
100 100 100 100
139 191 108 170
148 179 138 180
153 210 1 207
120 189 159 130
Average spending of CU, total Average spending of CU, index
Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
26 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
Table 14. Restaurants and Carry-Outs: Total spending by high-income consumer units, 2003 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units (CU) with high incomes, 2003; complete income reporters only; consumer units and dollars in thousands) total complete reporters 97,391 $4,162,653,009
$100,000 or more 11,537 $1,078,880,940
$100,000– $119,999 4,384 $331,436,976
$120,000– $149,999 3,151 $272,408,550
$150,000 or more 4,002 $474,933,788
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
190,550,361 68,816,481
46,339,976 15,544,492
15,348,910 4,912,535
12,016,528 4,338,959
18,948,429 6,286,782
38,483,080 21,916,871 670,050 7,746,480
7,595,499 6,178,294 89,412 1,681,402
2,785,024 1,543,519 55,370 528,623
1,969,974 1,657,615 16,511 694,827
2,838,258 2,970,605 17,569 460,350
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
75,393,295
22,027,709
7,434,036
5,182,135
9,392,814
22,747,616 52,175,280 141,217 330,155
4,616,069 17,375,876 – 28,843
1,657,941 5,775,131 – 1,008
1,160,230 3,994,365 – 20,545
1,795,777 7,589,673 – 7,364
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
26,690,004
4,940,259
1,557,153
1,351,180
2,029,574
19,324,322 2,784,409 3,414,528 1,166,744
3,743,295 434,022 445,444 317,498
1,209,239 103,068 165,671 79,175
1,003,594 101,777 112,617 133,161
1,528,564 228,514 167,003 105,493
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
19,650,582
3,827,400
1,445,186
1,144,286
1,239,259
9,655,344 9,342,719 162,643 488,903
1,593,952 2,114,271 20,767 98,411
642,651 752,908 10,083 39,544
476,935 634,580 32 32,739
475,238 727,203 10,605 26,213
Number of consumer units Total spending of all CUs
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 27
Table 15. Restaurants and Carry-Outs: Market shares by high-income consumer units, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units with high incomes, 2003; complete income reporters only) total complete reporters
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
Share of total consumer units Share of total before-tax income Share of total spending
100.0% 100.0 100.0
11.8% 35.8 25.9
4.5% 9.5 8.0
3.2% 8.3 6.5
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0 100.0
24.3 22.6
8.1 7.1
6.3 6.3
9.9 9.1
100.0 100.0 100.0 100.0
19.7 28.2 13.3 21.7
7.2 7.0 8.3 6.8
5.1 7.6 2.5 9.0
7.4 13.6 2.6 5.9
Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
29.2
9.9
6.9
12.5
100.0 100.0 100.0 100.0
20.3 33.3 – 8.7
7.3 11.1 – 0.3
5.1 7.7 – 6.2
7.9 14.5 – 2.2
Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
18.5
5.8
5.1
7.6
100.0 100.0 100.0 100.0
19.4 15.6 13.0 27.2
6.3 3.7 4.9 6.8
5.2 3.7 3.3 11.4
7.9 8.2 4.9 9.0
Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
100.0
19.5
7.4
5.8
6.3
100.0 100.0 100.0 100.0
16.5 22.6 12.8 20.1
6.7 8.1 6.2 8.1
4.9 6.8 0.0 6.7
4.9 7.8 6.5 5.4
Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey
28 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS
4.1% 18.0 11.4
Table 16. Restaurants and Carry-Outs: Average spending by household type, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by type of consumer unit, 2003)
total consumer units
total married couples
married couples, no children
115,356 2.5 $51,128.00 40,817.33
58,448 3.2 $69,472.00 53,030.03
RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias
1,831.97 658.16
married couples with children total
oldest child under 6
oldest child 6 to 17
oldest child 18 or older
single parent, at least one child