Fast casuals hanging on as consumers prioritize groceries amid cuts

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July 1, 2025

While U.S. consumers are spending more than twice as much on groceries as on food at restaurants, fast casual brands remain a significant portion of their dining-out budget, with nearly half of Americans frequenting these establishments. Consumers average $235 on groceries each week, compared to $115 spent on all restaurant meals, highlighting a nationwide trend of tightened belts amid economic uncertainty, according to a Popmenu study.

It revealed that 47% of consumers regularly visit fast casual spots, including Chipotle and Panera, but behind the most popular category, “quick service” or “fast food” restaurants, which are frequented by 69% of those surveyed. Casual dining (42%), pizzerias (38%), and coffee shops/cafes (18%) follow in popularity.

The findings come as two-thirds of U.S. consumers were scaling back personal expenses, with restaurants being the top area for cuts (61%), surpassing clothes/shoes (52%) and entertainment (49%).

“Consumers are growing more discerning with their finances as confidence in U.S. economic performance dips,” Brendan Sweeney, CEO and co-founder of Popmenu, said in a company press release. “Restaurants not only have to compete harder with one another, they have to compete with every other business out there trying to get a bigger share of consumer spend.”

The study, which surveyed 1,000 U.S. consumers in June 2025, also found that over half (57%) of consumers dined at or ordered from restaurants at least twice a week. Takeout was the preferred option for 44%, driven by a desire to avoid delivery fees and receive food faster, while 34% preferred dining in and 22% opted for delivery.

Looking specifically at summer budgets, 44% of consumers expect to decrease their restaurant spending, with only 18% anticipating an increase. To offset high grocery costs, nearly half of consumers are buying cheaper or generic food items (49%) and fewer snacks (47%), while 43% are focusing on necessities and using coupons.

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