Question: How do I respond to this discussion post with sources and citations? Right now, the restaurant industry looks pretty healthy on paper. Sales are up,
How do I respond to this discussion post with sources and citations? Right now, the restaurant industry looks pretty healthy on paper. Sales are up, jobs are steady, and people are still eating out. Nevertheless, most of that growth is nominal, meaning it has been driven by higher prices rather than a big increase in real activity. When you look deeper, you see some long-term shifts beneath the surface that the current numbers do not yet fully capture. Here is the simple version: Even though things look good in the short run, the foundations of how and where people spend their food dollars are changing. As inflation keeps food and labor costs high and minimum wages rise restaurant prices climb right along with them. At the same time, many people's paychecks are not keeping up. That squeezes the middle class and pushes lower-income households to look for cheaper, more controlled alternatives like meal kits, bulk groceries, or ready-to-cook options. Cooking at home has become easier and more convenient, so for many families, it is not just a temporary fix; it is becoming the new normal. The result? We are starting to see a slow cultural shift that splits the market into three lanes: The upper-income crowd keeps dining out for the experience fine dining, boutique restaurants, and unique venues thrive. The middle-income tier cuts back, leaning toward fast-casual or takeout options that stretch their dollars further. The lower-income group increasingly
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