Americans haven’t stopped eating out, but more and more people are looking for ways to eat less.
As prices have increased, I’ve become more mindful of how many times I go to a restaurant or takeout each month. Most of the meals are homemade and fresh, except here and there on the weekends.
A recent Popmenu study confirms I’m not alone.
A study of 3,000 consumers found that compared with a year ago, 60% said they were dining out less frequently, while 67% were also spending less at restaurants.
Consumers spend an average of about $100 per week at restaurants, down from $115 in June 2025.
Also read: Aldi takes new steps to win over Walmart, Kroger shoppers
Diners appear to be changing their orders:
- 52% said they drink water instead of purchasing other beverages.
- 47% choose cheaper restaurants.
- 29% ordered appetizers instead of a meal to lower their bill.
This pursuit of value creates a special problem for Cracker Barrel.
The restaurant chain has seen a decline in its lower-income customers as traffic declines, and more menu prices are about to rise.
“We continue to see weakness in lower-income segments and relative strength in higher-income segments,” Cracker Barrel Chief Financial Officer Craig Pommells told analysts on the company’s fourth-quarter earnings call.
Cracker Barrel traffic fell 6.1% in the fourth quarter, resulting in a 2.1% decline in like-for-like restaurant sales.
Meanwhile, diners faced higher bills, with Cracker Barrel’s average bill rising 4.2% and menu prices rising 4.4%.
And customers won’t necessarily pay more.
Cracker Barrel plans to cut prices by another 3%
Cracker Barrel expects prices to rise about 3% in fiscal 2027.
Pricing will peak at the beginning of the year and then drop each quarter.
The growth comes as Cracker Barrel expects its own expenses to continue rising.
here are some My other reports How grocery retailers are working to win over value-conscious shoppers:
- Aldi: The discount grocer is expanding rapidly across the United States as shoppers increasingly seek lower prices and store-exclusive products.
- hook up: Kroger is adding exclusives and new private-label products as competition intensifies from Walmart, Amazon and discount grocers.
- groceries prices: Rising food costs continue to put pressure on household budgets, prompting consumers to turn to cheaper brands, promotions and value-focused retailers.
The company expects goods inflation of about 3%, driven in part by beef, produce and seafood costs, and hourly wage inflation of 2.5% to 3%.
Restaurant patrons have come to accept steadily rising prices.
According to the Bureau of Labor Statistics, the cost of food outside the home increased 3.4% annually in August.
Full-service restaurant meals (the category most similar to Cracker Barrel) increased 3.5%.
Consumers appear increasingly sensitive to another round of price increases.
A July Toast survey of 850 U.S. diners found that 53% said they were eating out less than last year.
Of those cutting back, 56% blamed the overall cost of living, while 33% specifically cited restaurant menu prices.
Consumers aren’t necessarily giving up on restaurants entirely.
Instead, many are taking advantage of markdown deals:
- 40% of respondents said they chose lower-cost goods.
- 39% said they choose cheaper restaurants.
These changing behaviors are putting pressure on restaurant chains as they work to raise prices while trying to keep their menus affordable.
If they want to attract customers from all income groups, it’s important to keep prices affordable.
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Cracker Barrel becomes $7.99 pancakes and $8.99 meals
Cracker Barrel is trying to do just that.
Pommels noted that despite price increases elsewhere on the menu, the company believes several lower-priced options still enhance its value proposition.
“We have a sunrise pancake special for $7.99 every day,” Pommells said.
Cracker Barrel also offers an Early Dine menu Monday through Friday, starting at $8.99.
Management believes the restaurant’s prices remain relatively affordable.
Pommells said the average spend at Cracker Barrel is about $16, compared with about $20 in the broader family dining category and $27 in casual dining.
Even at dinner, the chain’s average check remains low at $16.
Cracker Barrel said that although traffic fell 6.1% in the fourth quarter, underlying traffic trends have gradually improved.
Total revenue in the fourth quarter decreased 2.2% year-on-year to US$849.3 million.
Cracker Barrel expects total revenue in fiscal 2027 to be between $3.325 billion and $3.4 billion, with comparable restaurant sales growing 3% to 5%.
The company also has no plans to open any new stores during the year.
But to achieve those goals, Cracker Barrel will need more than just raising prices.
With lower-income guests already showing signs of stress, $7.99 pancakes and $8.99 meals may become an increasingly important part of Cracker Barrel’s pitch to customers who still want to eat out but are price-conscious.
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