Consumer spending in restaurants continued to rise in May

Restaurant sales continued to trend higher in May, even as consumers were faced with broad-based price increases across much of their household budget. 

Eating and drinking places* registered total sales of $85.0 billion on a seasonally adjusted basis in May, according to preliminary data from the U.S. Census Bureau. 

That was up 0.7% from April’s sales volume of $84.4 billion, and represented the fourth consecutive monthly increase in consumers’ total spending at restaurants and bars. 

The recent positive trajectory followed sharp declines in both December and January, when customer traffic and business operations were negatively impacted by the significant increase in COVID-19 cases due to the omicron variant.

In total during the last four months, eating and drinking place sales were up 12.5% in nominal terms. With menu-price inflation checking in at 2.0% during this period, it translates to a real sales gain of more than 10%.

The recent upward trend in restaurant sales suggests that the healthy job market continues to win out against inflationary concerns – at least when it comes to consumers’ foodservice decisions. It remains to be seen if this lasts, as the first half of June brought $5 gas prices, soaring interest rates and a stock market that dipped into bear territory.  

*Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry, which prior to the coronavirus outbreak generated approximately 75 percent of total restaurant and foodservice sales.

Read more analysis and commentary from the Association's chief economist Bruce Grindy.