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Inflation gives Americans another reason to cook at home

Written by Tom Ryan

Source: Kroger.com

Domino’s Pizza last week said its research shows, to avoid delivery costs, more customers prepare meals during inflationary times rather than order pizza. Russell Weiner, CEO, said on the pizza franchisee’s fourth-quarter analyst call, “We believe this dynamic will continue to pressure the delivery category in the short term as long as consumers’ disposable income remains pressured by macroeconomic factors.” Domino’s findings lend credence to sentiments from grocers and ingredient makers such as McCormick that the at-home cooking binge during the pandemic lockdowns, the rise of hybrid working, and now inflationary pressures continue to elevate at-home cooking. Kroger’s “2023 Food Trends Report” centered on America's eat-at-home habits continuing even as pandemic concerns subside. "Customers not only learned to cook during the pandemic, they grew to love it," said Stuart Aitken, Kroger’s SVP, chief merchant and marketing officer, in a press release. “In 2023, cooking at home remains a mainstay with customers gathering together to celebrate time lost and save money as inflation moderates.” On a quarterly call in December, Rodney McMullen, Kroger’s CEO, said inflation is leading customers to download coupons and purchase more store brands but is not impacting overall grocery spend. “It's still three times or four times cheaper to eat at home versus going out to a restaurant and so many more people have learned how to cook,” he said. IRI’s point-of-sale data showed that at-home food spending remained strong in the fourth quarter, with center store sales up 11.1 percent and perimeter sales up 6.3 percent. Private label sales and promotions increased, while premium purchases declined. “The CPG space has proven to be less volatile and more resilient during economic downturns than other sectors,” said Alastair Steel, executive, client engagement, IRI. “However, shoppers are feeling the impact of high prices and are shying away from discretionary purchases.” Inflation still hasn’t slowed the recovery in restaurant spending as consumers continue to seek experiences after being cooped up during COVID. Mastercard SpendingPulse found restaurant spending jumped 24.2 percent year-over-year in January after a 15.1 percent gain in December. Food-away-from-home inflation in the U.S. remains slightly lower, up 8.2 percent year-over-year in January, compared to 11.3 percent food-at-home inflation.

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