Americans haven’t stopped eating out, but more of them are finding ways to spend less when they do.
With rising prices, I have become more mindful of how many restaurant or takeout meals I have each month. It’s home-cooked fresh meals for the most part, save a weekend here or there.
A recent Popmenu study confirms I’m not alone.
A study of 3,000 consumers found that 60% say they are dining out less frequently, while 67% are spending less at restaurants than a year ago.
The average consumer is spending about $100 a week at restaurants, down from $115 in June 2025.
Also read: Aldi makes new move to win shoppers from Walmart and Kroger
Diners appear to be changing what they order:
- 52% said they drink water instead of buying another beverage.
- 47% are choosing less expensive restaurants.
- 29% have ordered an appetizer instead of a full meal to lower the bill.
This hunt for value is creating a particular problem for Cracker Barrel.
The restaurant chain is already seeing its lower-income customers pull back as traffic falls, and more menu price increases are on the way.
“We are continuing to see some softness with the lower income cohort, and we’re seeing relative strength at the higher income,” Cracker Barrel CFO Craig Pommells told analysts during the company’s fourth quarter earnings call.
Guest traffic at Cracker Barrel fell 6.1% during its Q4, contributing to a 2.1% drop in comparable restaurant sales.
At the same time, diners faced higher bills, with Cracker Barrel’s average check rising 4.2% as menu prices increased 4.4%.
And customers aren’t necessarily finished paying more.
Cracker Barrel plans another 3% in pricing
Cracker Barrel expects to take approximately 3% in price increases during fiscal 2027.
Pricing will be highest early in the year and will decline each quarter.
The increase comes as Cracker Barrel expects its own expenses to keep rising.
Here is some of my other coverage of how grocery retailers are trying to win value-conscious shoppers:
- Aldi: The discount grocer is rapidly expanding across the U.S. as shoppers increasingly seek lower prices and store-exclusive products.
- Kroger: Kroger is adding exclusive products and new private-brand offerings as competition from Walmart, Amazon and discount grocers intensifies.
- Grocery prices: Elevated food costs continue to pressure household budgets, pushing shoppers toward cheaper brands, promotions and value-focused retailers.
The company projects commodity inflation of about 3%, driven in part by beef, produce, and seafood costs, along with hourly wage inflation of 2.5% to 3%.
Restaurant customers have already been absorbing steadily higher prices.
The cost of food away from home rose 3.4% in August compared with a year earlier, according to the Bureau of Labor Statistics.
Full-service restaurant meals, the category most comparable to Cracker Barrel, increased 3.5%.
And consumers appear to be increasingly sensitive to another round of increases.
A July survey of 850 U.S. diners by Toast found 53% said they were dining out less often than the previous year.
Among those who were cutting back, 56% blamed the overall cost of living, while 33% specifically cited restaurant menu prices.
Consumers aren’t necessarily giving up on restaurants altogether.
Instead, many are trading down:
- 40% of respondents said they chose lower-cost items.
- 39% said they opt for less expensive restaurants.
These changing behaviors are putting pressure on restaurant chains, as they work to increase prices while trying to keep the menu affordable.
Keeping it affordable is important if they want to attract customers across all income groups.
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Cracker Barrel turns to $7.99 pancakes and $8.99 meals
Cracker Barrel is trying to do exactly that.
Pommells pointed to several lower-priced options that the company believes strengthen its value proposition even as prices elsewhere on the menu rise.
“We have our Sunrise Pancake Special that’s every day at $7.99,” Pommells said.
Cracker Barrel also offers its Early Dine menu Monday through Friday, starting at $8.99.
Management argues that the restaurant remains comparatively affordable.
Pommells said Cracker Barrel’s average check is around $16, compared with about $20 for the broader family-dining category and $27 for casual dining.
Even at dinner, the chain’s average check remains in the low $16 range.
At Cracker Barrel, the company says the underlying traffic trend has gradually improved despite the 6.1% fourth-quarter decline.
Total Q4 revenue fell 2.2% from a year earlier to $849.3 million.
For fiscal 2027, Cracker Barrel expects total revenue between $3.325 billion and $3.4 billion and comparable restaurant sales growth of 3% to 5%.
The company does not plan to open any new stores during the year either.
But to hit these targets, Cracker Barrel will require more than simply raising prices.
With lower-income guests already showing signs of strain, the $7.99 pancakes and $8.99 meals could 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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