Research
June 02, 2026
New NRA Survey: Restaurants Stay a Priority as Financial Strains Challenge Spending
There continues to be mixed news about consumer behavior in the U.S. economy, with restaurants navigating both headwinds and signs of resilience. With that in mind, the National Restaurant Association has started surveying everyday consumers on a quarterly basis to gauge their perceptions about their personal finances and their utilization of restaurants. To date, the Quarterly Consumer Insights Survey has data for Q1 and Q2 2026, and over time, we will be able to examine consumer trends from a longer term perspective, partcularly as it relates to dining out.
Specific to the second quarter, two-thirds of consumers report feeling good about their overall financial well-being—a potentially surprising finding given ongoing concerns about higher gasoline prices and rising economic uncertainty tied to geopolitical tensions, including the war in Iran. At the same time, broader measures of sentiment paint a more cautious picture. For instance, the University of Michigan’s consumer sentiment index fell to an all-time low in May amid these pressures. Notably, there are clear generational differences, with both younger and older consumers expressing greater optimism. The “K-shaped” nature of the recovery also remains evident, as higher-income households continue to exhibit stronger confidence in their personal finances.
This “K-shaped” narrative becomes even more pronounced when accounting for employment status. Unsurprisingly, those who are employed report significantly stronger financial confidence: 93% say they feel positive about their financial position. Even among households earning less than $50,000 per year, confidence remains relatively high at 86% for those currently employed. These figures reinforce the importance of labor market attachment in shaping household financial sentiment.
Even so, signs of financial strain persist. Thirty-five percent of consumers say they regularly—meaning every month or most months—spend more than they earn, while nearly half (49%) report doing so at least occasionally. These are striking figures, underscoring the precariousness of many household budgets and extending the notion of living paycheck to paycheck. This dynamic is further reflected in the personal savings rate, which recently fell to its lowest level since October 2022. In other words, consumers are continuing to spend, but increasingly by drawing down their savings. Younger consumers are particularly vulnerable, with nearly half (47%) reporting that they regularly outspend their income. Similarly, households earning less than $50,000 are more likely to face this challenge, with 42% indicating they frequently spend beyond their means.
For restaurants, the data presents both encouraging and cautionary signals. On the positive side, restaurants remain the top discretionary purchase for consumers, underscoring the sector’s continued prioritization even as households pull back in other spending categories. In the second quarter, 56% of consumers said they dined at a restaurant in the past week, half ordered takeout or delivery, and 39% purchased a coffee or snack. Dining frequency increased modestly, with the share eating out rising 4 percentage points from the first quarter, while coffee and snack purchases edged down by 2 points.
Engagement remains particularly strong among younger consumers. Fully 86% of Generation Z reported dining at a restaurant, ordering takeout, or purchasing a coffee or snack in the past week. Even among Baby Boomers, usage was solid at 72%. At the same time, familiar “K-shaped” patterns are evident in restaurant activity. Ninety percent of households earning $100,000 or more reported restaurant engagement in the past week, compared with 84% of those earning $50,000 to $99,000 and 72% of those earning less than $50,000.
However, while usage remains relatively healthy, there are growing signs that consumers are moderating restaurant spending. In the second quarter, 36% of consumers said they spent less at restaurants, including takeout and delivery, than in the first quarter. The pullback was most pronounced among younger consumers, with 45% of Generation Z reporting reduced spending. Baby Boomers reported the smallest decline, at 32%. Across all generations, the share of consumers reducing restaurant spending exceeded those increasing it. Overall, 24% reported spending more, while 40% indicated that their spending was largely unchanged.
Consumers are also adjusting how they spend when they do dine out. In the second quarter, 35% said they ordered fewer add-ons such as desserts or beverages, up from 32% in the first quarter. Similarly, 34% reported shifting toward less expensive restaurants, also up from 32%. At the same time, reliance on discounts and value promotions eased slightly, with 35% of consumers using them more frequently in the second quarter, down from 37% previously.
Overall, these data underscore the complexity of the current consumer environment. While rising stock prices and home values continue to support higher-income households—allowing them to spend more freely—lower- and middle-income consumers, as well as younger cohorts, remain more cautious as financial pressures persist. This divergence is further amplified by employment status, reinforcing the uneven, “K-shaped” nature of the recovery. At the same time, geopolitical tensions, including the war in Iran, and elevated gasoline prices are placing additional strain on household budgets. Even as consumers continue to prioritize restaurant spending relative to other discretionary categories, there are clear indications that outlays in this space have softened somewhat.
Looking ahead, some relief may be on the horizon. If gasoline prices were to stabilize in the coming weeks, pressure on household budgets could ease, providing support for restaurants and broader consumer spending. Additional tailwinds—including larger tax refunds, continued economic growth beyond AI-driven investment, and solid wage gains—should help sustain demand. For restaurants, these factors point to continued resilience and modest spending growth in the year ahead. However, given persistent uncertainties, particularly around consumer sentiment and cost pressures, that outlook is likely to remain cautiously optimistic, particularly as relief on the gasoline price front remains far from certain at this point.
Specific to the second quarter, two-thirds of consumers report feeling good about their overall financial well-being—a potentially surprising finding given ongoing concerns about higher gasoline prices and rising economic uncertainty tied to geopolitical tensions, including the war in Iran. At the same time, broader measures of sentiment paint a more cautious picture. For instance, the University of Michigan’s consumer sentiment index fell to an all-time low in May amid these pressures. Notably, there are clear generational differences, with both younger and older consumers expressing greater optimism. The “K-shaped” nature of the recovery also remains evident, as higher-income households continue to exhibit stronger confidence in their personal finances.
This “K-shaped” narrative becomes even more pronounced when accounting for employment status. Unsurprisingly, those who are employed report significantly stronger financial confidence: 93% say they feel positive about their financial position. Even among households earning less than $50,000 per year, confidence remains relatively high at 86% for those currently employed. These figures reinforce the importance of labor market attachment in shaping household financial sentiment.
Even so, signs of financial strain persist. Thirty-five percent of consumers say they regularly—meaning every month or most months—spend more than they earn, while nearly half (49%) report doing so at least occasionally. These are striking figures, underscoring the precariousness of many household budgets and extending the notion of living paycheck to paycheck. This dynamic is further reflected in the personal savings rate, which recently fell to its lowest level since October 2022. In other words, consumers are continuing to spend, but increasingly by drawing down their savings. Younger consumers are particularly vulnerable, with nearly half (47%) reporting that they regularly outspend their income. Similarly, households earning less than $50,000 are more likely to face this challenge, with 42% indicating they frequently spend beyond their means.
For restaurants, the data presents both encouraging and cautionary signals. On the positive side, restaurants remain the top discretionary purchase for consumers, underscoring the sector’s continued prioritization even as households pull back in other spending categories. In the second quarter, 56% of consumers said they dined at a restaurant in the past week, half ordered takeout or delivery, and 39% purchased a coffee or snack. Dining frequency increased modestly, with the share eating out rising 4 percentage points from the first quarter, while coffee and snack purchases edged down by 2 points.
Engagement remains particularly strong among younger consumers. Fully 86% of Generation Z reported dining at a restaurant, ordering takeout, or purchasing a coffee or snack in the past week. Even among Baby Boomers, usage was solid at 72%. At the same time, familiar “K-shaped” patterns are evident in restaurant activity. Ninety percent of households earning $100,000 or more reported restaurant engagement in the past week, compared with 84% of those earning $50,000 to $99,000 and 72% of those earning less than $50,000.
However, while usage remains relatively healthy, there are growing signs that consumers are moderating restaurant spending. In the second quarter, 36% of consumers said they spent less at restaurants, including takeout and delivery, than in the first quarter. The pullback was most pronounced among younger consumers, with 45% of Generation Z reporting reduced spending. Baby Boomers reported the smallest decline, at 32%. Across all generations, the share of consumers reducing restaurant spending exceeded those increasing it. Overall, 24% reported spending more, while 40% indicated that their spending was largely unchanged.
Consumers are also adjusting how they spend when they do dine out. In the second quarter, 35% said they ordered fewer add-ons such as desserts or beverages, up from 32% in the first quarter. Similarly, 34% reported shifting toward less expensive restaurants, also up from 32%. At the same time, reliance on discounts and value promotions eased slightly, with 35% of consumers using them more frequently in the second quarter, down from 37% previously.
Overall, these data underscore the complexity of the current consumer environment. While rising stock prices and home values continue to support higher-income households—allowing them to spend more freely—lower- and middle-income consumers, as well as younger cohorts, remain more cautious as financial pressures persist. This divergence is further amplified by employment status, reinforcing the uneven, “K-shaped” nature of the recovery. At the same time, geopolitical tensions, including the war in Iran, and elevated gasoline prices are placing additional strain on household budgets. Even as consumers continue to prioritize restaurant spending relative to other discretionary categories, there are clear indications that outlays in this space have softened somewhat.
Looking ahead, some relief may be on the horizon. If gasoline prices were to stabilize in the coming weeks, pressure on household budgets could ease, providing support for restaurants and broader consumer spending. Additional tailwinds—including larger tax refunds, continued economic growth beyond AI-driven investment, and solid wage gains—should help sustain demand. For restaurants, these factors point to continued resilience and modest spending growth in the year ahead. However, given persistent uncertainties, particularly around consumer sentiment and cost pressures, that outlook is likely to remain cautiously optimistic, particularly as relief on the gasoline price front remains far from certain at this point.