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Consumers are spending more at restaurants, but not at chains

Paying Money sits on table (MARGARET JOHNSON/MargJohnsonVA - stock.adobe.com)

Restaurant sales improved in July, with spending at restaurants increasing by 3.3% compared to 1.8% in July 2025.

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Transactions also increased by 1.1%, up from 0.8% a year ago.

Lower-income consumers are driving this growth, with their spending increasing more than middle or higher-income consumers.

Gen Z consumers are also spending more across all industry sectors.

However, national chains are not benefiting from this growth, with independent and regional brands growing sales around 4%.

Sysco CEO Kevin Hourican noted that mom-and-pop restaurants have outperformed chains, contrary to common assumptions, possibly due to easing menu price inflation.

Easing menu price inflation and increased grocery prices may be pushing consumers towards restaurants.

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Laurel Lee

Laurel Lee

Laurel Lee is a reporter for WDBO and produces various Ask the Expert shows on the weekend.