Who's Buying at Restaurants And Carry-outs

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THE WHO’S BUYING SERIES BY THE NEW STRATEGIST EDITORS

at Restaurants and Carry-Outs 3rd EDITION

W

New Strategist Publications, Inc. P.O. Box 242, Ithaca, New York 14851 800/848-0842; 607/273-0913 www.newstrategist.com

Copyright 2005. NEW STRATEGIST PUBLICATIONS, INC.

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microﬁlming, recording, or otherwise without written permission from the Publisher.

ISBN 1-885070-98-5

Printed in the United States of America

Contents About the Data in Who’s Buying at Restaurants and Carry-Outs .......................................................................................5 1.

Percent Reporting Expenditure and Amount Spent, Average Week 2003 ..................................9

Household Spending Trends: 2000 to 2003 .................................................................................................................10 2.

Household Spending Trends, 2000 to 2003 .................................................................................... 11

Household Spending at Restaurants and Carry-Outs, 2003 .............................................................................................14 3.

Restaurant and Carry-Out Spending, 2000 and 2003 ...................................................................16

Household Spending at Restaurants and Carry-Outs by Demographic Characteristic, 2003 4.

Restaurants and Carry-Outs: Average Spending by Age, 2003 ..................................................17

5.

Restaurants and Carry-Outs: Indexed Spending by Age, 2003 ..................................................18

6.

Restaurants and Carry-Outs: Total Spending by Age, 2003 ........................................................19

7.

Restaurants and Carry-Outs: Market Shares by Age, 2003 .........................................................20

8.

Restaurants and Carry-Outs: Average Spending by Income, 2003 ............................................21

9.

Restaurants and Carry-Outs: Indexed Spending by Income, 2003 ............................................22

10.

Restaurants and Carry-Outs: Total Spending by Income, 2003 ..................................................23

11.

Restaurants and Carry-Outs: Market Shares by Income, 2003 ...................................................24

12.

Restaurants and Carry-Outs: Average Spending by High-Income Consumer Units, 2003 ....25

13.

Restaurants and Carry-Outs: Indexed Spending by High-Income Consumer Units, 2003 ....26

14.

Restaurants and Carry-Outs: Total Spending by High-Income Consumer Units, 2003 .........27

15.

Restaurants and Carry-Outs: Market Shares by High-Income Consumer Units, 2003 ...........28

16.

Restaurants and Carry-Outs: Average Spending by Household Type, 2003 ............................29

17.

Restaurants and Carry-Outs: Indexed Spending by Household Type, 2003 ............................30

18.

Restaurants and Carry-Outs: Total Spending by Household Type, 2003 ..................................31

19.

Restaurants and Carry-Outs: Market Shares by Household Type, 2003 ...................................32

20.

Restaurants and Carry-Outs: Average Spending by Race and Hispanic Origin, 2003 ............33

21.

Restaurants and Carry-Outs: Indexed Spending by Race and Hispanic Origin, 2003 ............34

22.

Restaurants and Carry-Outs: Total Spending by Race and Hispanic Origin, 2003 .................35

23.

Restaurants and Carry-Outs: Market Shares by Race and Hispanic Origin, 2003 ...................36

24.

Restaurants and Carry-Outs: Average Spending by Region, 2003 .............................................37

25.

Restaurants and Carry-Outs: Indexed Spending by Region, 2003 .............................................38

26.

Restaurants and Carry-Outs: Total Spending by Region, 2003 ...................................................39

27.

Restaurants and Carry-Outs: Market Shares by Region, 2003 ....................................................40

28.

Restaurants and Carry-Outs: Average Spending by Education, 2003 .......................................41

29.

Restaurants and Carry-Outs: Indexed Spending by Education, 2003 .......................................42

30.

Restaurants and Carry-Outs: Total Spending by Education, 2003 .............................................43

31.

Restaurants and Carry-Outs: Market Shares by Education, 2003 ..............................................44

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 3

Household Spending at Restaurants and Carry-Outs by Product Category, 2003 .................................................................14 32.

Breakfast at Fast-Food Restaurants .................................................................................................46

33.

Breakfast at Full-Service Restaurants .............................................................................................48

34.

Dinner at Fast-Food Restaurants .....................................................................................................50

35.

Dinner at Full-Service Restaurants .................................................................................................52

36.

Lunch at Employer and School Cafeterias ....................................................................................54

37.

Lunch at Fast-Food Restaurants .....................................................................................................56

38.

Lunch at Full-Service Restaurants .................................................................................................58

39.

Snacks at Employer and School Cafeterias ...................................................................................60

40.

Snacks at Fast-Food Restaurants ....................................................................................................62

41.

Snacks at Full-Service Restaurants .................................................................................................64

42.

Snacks at Vending Machines and Mobile Vendors ......................................................................66

Appendix: Spending by Product and Service, 2003 Ranking ............................................................................................68 Glossary ............................................................................................................................................................75

4 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

ABOUT THE DATA IN Who’s Buying at Restaurants and Carry-outs Introduction The spending data in Who’s Buying at Restaurants and Carry-outs are based on the Bureau of Labor Statistics’ Consumer Expenditure Survey, an ongoing, nationwide survey of household spending. The Consumer Expenditure Survey is a complete accounting of household expenditures, including everything from big-ticket items, such as homes and cars, to small purchases like laundry detergent and videos. The survey does not include expenditures by government, business, or institutions. The lag time between data collection and dissemination is about two years. The data in this report are from the 2003 Consumer Expenditure Survey, unless otherwise noted. To produce this report, New Strategist Publications analyzed the Consumer Expenditure Survey’s average household spending data in a variety of ways, calculating household spending indexes, aggregate (or total) household spending, and market shares. Spending data by age, household income, household type, race, Hispanic origin, region, and education are shown in this report. These analyses are presented in two formats—for all product categories by demographic characteristic and for all demographic characteristics by product category.

Deﬁnition of consumer unit The Consumer Expenditure Survey uses the consumer unit rather than the household as the sampling unit. The term “household” is used interchangeably with the term “consumer unit” in this report for convenience, although they are not exactly the same. Some households contain more than one consumer unit. The Bureau of Labor Statistics deﬁnes onsumer unit as either (1) members of a household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is ﬁnancially independent; or (3) two persons or more living together who pool their income to make joint expenditure decisions. The bureau deﬁnes ﬁnancial independence in terms of “the three major expenses categories: housing, food, and other living expenses. To be considered ﬁnancially independent, at least two of the three major expense categories have to be provided by the respondent.” The Census Bureau uses household as its sampling unit in the decennial census and in the monthly Current Population Survey. The Census Bureau’s household “consists of all persons who occupy a housing unit. A house, an apartment or other groups of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live and eat with any other persons in the structure and there is direct access from the outside or through a common hall.” The deﬁnition goes on to specify that “a household includes the related family members and all the unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit or a group of unrelated persons sharing a housing unit as partners is also counted as a household. The count of households excludes group quarters.” Because there can be more than one consumer unit in a household, consumer units outnumber households by several million. Young adults under age 25 head most of the additional consumer units.

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 5

How to use the tables in this report The starting point for all calculations are the unpublished, detailed average household spending data collected by the Consumer Expenditure Survey. These numbers are shown on the report’s average spending tables and on each of the product-speciﬁc tables. New Strategist’s editors calculated the other ﬁgures in the report based on the average ﬁgures. The indexed spending tables and the indexed spending column (Best Customers) on the product-speciﬁc tables reveal whether spending by households in a given segment is above or below the average for all households and by how much. The total (or aggregate) spending tables show the overall size of the market. The market share tables and market share column (Biggest Customers) on the product-speciﬁc tables reveal how much spending each household segment controls. These analyses are described in detail below. • Average Spending. The average spending ﬁgures show the average annual spending of households at restaurants and carry-outs in 2003. The Consumer Expenditure Survey produces average spending data for all households in a segment, e.g., all households with a householder aged 25 to 34, not just those purchasing an item. When examining spending data, it is important to remember that by including both purchasers and nonpurchasers in the calculation, the average is less than the amount spent on the item by buyers. (See table 1 for the percentage of households that spent on restaurant meals during an average week in 2003 and how much the purchasers spent.) Because average spending ﬁgures include both buyers and nonbuyers, they reveal spending patterns by demographic characteristic. By knowing who is most likely to spend on an item, marketers can target their advertising and promotions more efﬁciently, and businesses can determine the market potential of a product or service in a city or neighborhood. By multiplying the average amount households spend on full-service dinners by the number of households in an area, for example, a restaurant owner can estimate the potential size of the local sit-down dining market. • Indexed Spending (Best Customers). The indexed spending ﬁgures compare the spending of each household segment with that of the average household. To compute the indexes, New Strategist divides the average amount each household segment spends on an item by average household spending, and multiplies the resulting ﬁgure by 100. An index of 100 is the average for all households. An index of 125 means the spending of a household segment is 25 percent above average (100 plus 25). An index of 75 indicates spending that is 25 percent below the average for all households (100 minus 25). Indexed spending ﬁgures identify the best customers for a product or service. Households with an index of 178 for fastfood lunches, for example, are a strong market for this product. Those with an index below 100 are either a weak or an underserved market. Spending indexes can reveal hidden markets—household segments with a high propensity to buy a particular product or service but which are overshadowed by household segments that account for a larger share of the market. Householders aged 65 to 74, for example, account for 12 percent of the market for full-service breakfasts versus a larger 15 percent share accounted for by householders aged 25 to 34. But a look at the indexed spending ﬁgures reveals that, in fact, the older householders are the better customers. Householders aged 65 to 74 spend 18 percent more than the average household on full-service breakfasts, while householders aged 25 to 34 spend 11 percent less than the average household on this item. The owners of restaurants can use this information to target their best customers.

6 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Note that because of sampling errors, small differences in index values may not be signiﬁcant. But the broader patterns revealed by indexes can guide marketers to the best customers. • Total (Aggregate) Spending. To produce the total (aggregate) spending ﬁgures, New Strategist multiplies average spending by the number of households in a segment. The result is the dollar size of the total household market and of each market segment. All totals are shown in thousands of dollars. To convert the numbers in the total spending tables to dollars, you must append “000” to the number. For example, households headed by people aged 45 to 54 spent more than $14 billion ($14,417,090,000) on full-service dinners in 2003. When comparing the total spending ﬁgures in this report with total spending estimates from the Bureau of Economic Analysis, other government agencies, or trade associations, keep in mind that the Consumer Expenditure Survey includes only household spending, not spending by businesses or institutions. Sales data also will differ from household spending totals because sales ﬁgures for consumer products include the value of goods sold to industries, government, and foreign markets, which can be a signiﬁcant proportion of sales. • Market Shares (Biggest Customers). New Strategist produces market share ﬁgures by converting total (aggregate) spending data into percentages. To calculate the percentage of total spending on an item that is controlled by a demographic segment—i.e., its market share—the segment’s total spending on the item is divided by aggregate household spending on the item. Market shares reveal the biggest customers—the demographic segments that account for the largest share of spending on a particular product or service. In 2003, for example, married couples with children at home accounted for 39 percent of spending on fast-food dinners, a much greater proportion than their 25 percent share of consumer units. By targeting only these consumers, fastfood restaurants can reach a large proportion of their customers. There’s a danger here, however. By single-mindedly targeting the biggest customers, businesses cannot nurture potential growth markets. With competition for customers more heated than ever, targeting potential markets is increasingly important to business survival. • Product-Speciﬁc Tables. The product-speciﬁc tables reveal at a glance the demographic characteristics of spending by individual product category. These tables show average spending, indexed spending (Best Customers), and market shares (Biggest Customers) by age, income, household type, race and Hispanic origin, region, and education. If you want to see the spending pattern for an individual product at a glance, these are the tables for you.

History and methodology of the Consumer Expenditure Survey The Consumer Expenditure Survey (CEX) is an ongoing study of the day-to-day spending of American households. In taking the survey, government interviewers collect spending data on products and services as well as the amount and sources of household income, changes in savings and debt, and demographic and economic characteristics of household members. The Bureau of the Census collects data for the CEX under contract with the Bureau of Labor Statistics (BLS), which is responsible for analysis and release of the survey data. Since the late 19th century, the federal government has conducted expenditure surveys about every ten years. Although the results have been used for a variety of purposes, their primary application is to track consumer prices. In 1980, the CEX became a continuous survey with annual release of data (with a lag time of about two years between data collection and release). The survey is used to update prices for the market basket of products and services used in calculating the Consumer Price Index. WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 7

The CEX consists of two separate surveys: an interview survey and a diary survey. In the interview portion of the survey, respondents are asked each quarter for ﬁve consecutive quarters to report their expenditures for the previous three months. The purchase of big-ticket items such as houses, cars, and major appliances, and recurring expenses such as insurance premiums, utility payments, and rent are recorded by the interview survey. The interview component covers about 95 percent of all expenditures. Expenditures on small, frequently purchased items are recorded during a two-week period by the diary survey. These detailed records include expenses for food and beverages purchased in grocery stores and at restaurants, as well as other items such as tobacco, housekeeping supplies, nonprescription drugs, and personal care products and services. The diary survey is intended to capture expenditures respondents are likely to forget or recall incorrectly over longer periods of time. Two separate, nationally representative samples are used for the interview and diary surveys. For the interview survey, about 7,500 consumer units are interviewed on a rotating panel basis each quarter for ﬁve consecutive quarters. Another 7,500 consumer units keep weekly diaries of spending for two consecutive weeks. Data collection is carried out in 105 areas of the country. The data are reviewed, audited, and cleaned by the BLS, and then weighted to reﬂect the number and characteristics of all U.S. consumer units. Like any sample survey, the CEX is subject to two major types of error. Nonsampling error occurs when respondents misinterpret questions or interviewers are inconsistent in the way they ask questions or record answers. Respondents may forget items, recall expenses incorrectly, or deliberately give wrong answers. A respondent may remember how much he or she spent at the grocery store but forget the items picked up at a local convenience store. Nonsampling error can also be caused by mistakes during the various stages of data processing and reﬁnement. Sampling error occurs when a sample does not accurately represent the population it is supposed to represent. This kind of error is present in every sample-based survey and is minimized by using a proper sampling procedure. Standard error tables documenting the extent of sampling error in the CEX are available from the BLS at http://www.bls.gov/cex/csxstnderror.htm. Although the CEX is the best source of information about the spending behavior of American households, it should be treated with caution because of the above problems.

For more information To ﬁnd out more about the Consumer Expenditure Survey, contact the CEX specialists at the Bureau of Labor Statistics at (202) 691-6900, or visit the CEXhome page at http://www.bls.gov/ cex/. The web site includes news releases, technical documentation, and current and historical summary-level CEX data. The detailed average spending data shown in this report are available from the BLS only by special request. For a comprehensive look at detailed household spending data for all products and services, see the tenth edition of Household Spending: Who Spends How Much on What available from New Strategist Publications in hardcopy or online at http://www.newstrategist.com or by calling 1800-848-0842. To download spending reports for individual product and service categories, visit the instant-answer service at http://www.nspend.com.

8 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 1. Percent Reporting Expenditure and

Amount Spent, Average Week 2003 (percent of consumer units reporting expenditure and amount spent by purchasers during an average week, 2003) average week percent reporting expenditure

amount spent by purchasers

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

71.1% 54.3

$49.57 23.30

43.1 18.7 1.1 11.3

16.49 21.66 9.73 12.43

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

39.6

35.80

23.1 23.6 0.1 0.5

17.98 42.18 37.50 9.62

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

52.0

9.19

44.1 9.8 17.9 5.8

7.88 5.22 3.34 3.45

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28.3

12.74

20.2 10.2 0.7 2.2

8.85 16.93 4.29 3.60

Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 9

Household Spending Trends: 2000 to 2003 Between 2000 and 2003, spending by the average household barely changed, inching up by just 0.4 percent (or $178) to $40,817, after adjusting for inﬂation. At the same time, average household income grew a larger 7.2 percent. These ﬁgures reveal the caution of consumers during the sluggish economic recovery. The media may claim Americans spend beyond their means, but in fact the steady rise in consumer spending at the national level is primarily the result of demographic change—population growth and the aging of the baby-boom generation into the peak-earning and spending years. The anemic growth in average household spending between 2000 and 2003 should come as no surprise. American households have been cutting their spending on discretionary items for years as nondiscretionary expenses claim an ever-growing share of the household budget. Declines in discretionary spending are evident in the 2000 to 2003 trends. Spending on food away from home (primarily restaurant and take-out meals) fell 3 percent during those years, after adjusting for inﬂation. Spending on alcoholic beverages shrank 2 percent. Spending on apparel fell an enormous 17 percent, and the average amount devoted to reading material dropped by an even larger 19 percent. Spending on “other lodging,” a category that includes hotel and motel expenses, fell 13 percent. Although entertainment spending rose 3.5 percent overall between 2000 and 2003, spending on fees and admissions to entertainment events fell 10 percent. Americans cut back on many discretionary purchases because their nondiscretionary expenses—the spending they cannot control—was on the rise. After adjusting for inﬂation, the average household spent 10 percent more on property taxes in 2003 than in 2000. Mortgage interest expenses rose 5 percent despite falling interest rates because of the surge in homeownership. Out-of-pocket spending on health insurance increased 19 percent. Spending on vehicle insurance grew 9 percent. Spending on water and other public services increased 3 percent. Spending on education rose 16 percent. Contrary to popular perception, Americans are cautious spenders at the individual household level. The recession of 2001 followed by the slow recovery forced households to spend less on discretionary items to make ends meet. Rising energy costs—not yet reﬂected in these numbers—are likely to reduce discretionary spending even further. With the aging baby-boom generation entering its sixties and exiting the peak-spending years, average household spending is likely to remain modest. The U.S. economy will have to adapt. Fortunately, the tools are in hand—there’s no better way to prepare for the future than to understand household spending patterns.

10 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 2. Household Spending Trends, 2000 to 2003

(average annual spending of consumer units by product and service category, 2000 and 2003; percent change 2000–03; in 2003 dollars) 2003

2000

percent change 2000–03

Number of consumer units (in 000s)

115,356

109,367

5.5%

Average before-tax income

$51,128

$47,693

7.2

40,817

40,639

0.4

FOOD

5,340

5,510

–3.1

Food at home

3,129

3,227

–3.0

442

484

–8.7

Cereals and cereal products

150

167

–10.0

Bakery products

292

317

–8.0

825

849

–2.9

Beef

246

254

–3.2

Pork

171

178

–4.1

Other meats

102

108

–5.5

Poultry

145

155

–6.4

Fish and seafood

124

118

5.5

37

36

1.9

328

347

–5.5

Fresh milk and cream

127

140

–9.2

Other dairy products

201

206

–2.5

535

557

–3.9

Fresh fruits

171

174

–1.8

Fresh vegetables

172

170

1.3

Processed fruits

108

123

–12.1 –6.4

Average annual spending

Cereals and bakery products

Meats, poultry, ﬁsh, and eggs

Eggs Dairy products

Fruits and vegetables

Processed vegetables Other food at home Sugar and other sweets Fats and oils

84

90

999

990

0.9

119

125

–4.8

86

89

–3.0

Miscellaneous foods

490

467

5.0

Nonalcoholic beverages

268

267

0.4

36

43

–15.7

2,211

2,283

–3.1

Food prepared by household on trips Food away from home ALCOHOLIC BEVERAGES

391

397

–1.6

13,432

13,159

2.1

Shelter

7,887

7,599

3.8

Owned dwellings

5,263

4,916

7.1

Mortgage interest and charges

2,954

2,819

4.8

Property taxes

1,344

1,217

10.5

HOUSING

Maintenance, repairs, insurance, other expenses Rented dwellings Other lodging Utilities, fuels, and public services Natural gas Electricity

965

881

9.5

2,179

2,173

0.3 –12.8

445

511

2,811

2,659

5.7

392

328

19.5

1,028

973

5.6

Fuel oil and other fuels

110

104

6.2

Telephone services

956

937

2.1

Water and other public services

326

316

3.1

Household services

707

731

–3.2

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 11

Housekeeping supplies

2003

2000

percent change 2000–03

$529

$515

Laundry and cleaning supplies

132

140

Other household products

263

241

8.9

Postage and stationery

133

135

–1.2

Household furnishings and equipment

2.7% –5.7

1,497

1,655

–9.5

Household textiles

113

113

–0.2

Furniture

401

418

–4.0

52

47

10.6

196

202

–2.9

88

93

–5.3

648

781

–17.0

Floor coverings Major appliances Small appliances, miscellaneous housewares Miscellaneous household equipment APPAREL AND SERVICES

1,640

1,983

–17.3

Men and boys

372

470

–20.9

Men, aged 16 or older

282

368

–23.3

Boys, aged 2 to 15

89

103

–13.2

Women and girls

634

774

–18.1

Women, aged 16 or older

529

648

–18.4

Girls, aged 2 to 15

106

126

–15.9

81

88

–7.5

Footwear

294

366

–19.8

Other apparel products and services

258

284

–9.2

TRANSPORTATION

7,781

7,923

–1.8

Vehicle purchases

3,732

3,651

2.2

Cars and trucks, new

2,052

1,714

19.7

Children under age 2

Cars and trucks, used

1,611

1,891

–14.8

Gasoline and motor oil

1,333

1,379

–3.3

Other vehicle expenses

2,331

2,437

–4.3

Vehicle ﬁnance charges

371

350

5.9

Maintenance and repairs

619

667

–7.1

Vehicle insurance

905

831

8.9

Vehicle rental, leases, licenses, other charges

436

589

–25.9

Public transportation

385

456

–15.6

HEALTH CARE

2,416

2,207

9.5

Health insurance

1,252

1,050

19.2

Medical services

591

607

–2.6

Drugs

467

444

5.1

Medical supplies

107

106

1.2

2,060

1,990

3.5

Fees and admissions

494

550

–10.2

Television, radio, sound equipment

730

664

9.9

Pets, toys, and playground equipment

378

357

6.0

Other entertainment supplies, services

457

420

8.9

PERSONAL CARE PRODUCTS AND SERVICES

527

603

–12.5

READING

127

156

–18.6

EDUCATION

783

675

16.0

TOBACCO PRODUCTS AND SMOKING SUPPLIES

290

341

–14.9

ENTERTAINMENT

MISCELLANEOUS

606

829

–26.9

CASH CONTRIBUTIONS

1,370

1,273

7.6

PERSONAL INSURANCE AND PENSIONS

4,055

3,594

12.8

397

426

–6.9

Pensions and Social Security

3,658

3,168

15.5

PERSONAL TAXES

2,532

3,330

–24.0

Federal income taxes

1,843

2,573

–28.4

State and local income taxes

502

600

–16.4

Other taxes

187

156

19.9

Life and other personal insurance

12 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

GIFTS FOR NONHOUSEHOLD MEMBERS

2003

2000

percent change 2000–03

$1,007

$1,157

Food

78

75

Alcoholic beverages

16

15

7.0

220

311

–29.2

Housekeeping supplies

42

42

0.8

Household textiles

13

14

–6.4

Appliances and misc. housewares

25

30

–16.4

7

9

–18.1

18

22

–19.8

Miscellaneous household equipment

57

75

–23.8

Other housing

85

150

–43.2

Apparel and services

225

261

–13.7

Males, aged 2 or older

56

73

–22.9

Females, aged 2 or older

80

91

–11.9

Children under age 2

39

44

–11.0

Other apparel products and services

50

55

–8.2

Jewelry and watches

26

21

21.7

All other apparel products and services

25

32

–22.0

Transportation

60

75

–19.8

Health care

48

41

18.3

Entertainment

69

100

–31.3

Toys, games, hobbies, and tricycles

26

32

–18.9

Other entertainment

43

68

–37.1

Personal care products and services

16

20

–21.2

1

2

–53.2

200

161

24.0

74

95

–22.2

Housing

Major appliances Small appliances and misc. housewares

Reading Education All other gifts

–13.0% 4.3

Note: The Bureau of Labor Statistics uses consumer unit rather than household as the sampling unit in the Consumer Expenditure Survey. For the deﬁnition of consumer unit, see the glossary. Spending by category will not add to total spending because gift spending is also included in the preceding product and service categories and personal taxes are not included in the total. Source: Bureau of Labor Statistics, 2000 and 2003 Consumer Expenditure Surveys, Internet site http://www.bls.gov/cex/home.htm; calculations by New Strategist

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 13

Household Spending at Restaurants and Carry-Outs, 2003 Between 2000 and 2003, average household spending at restaurants and carry-outs fell 2 percent, after adjusting for inﬂation. Behind the decline was a 1 percent drop in spending on dinners and a larger 7 percent drop in spending on lunches. In contrast, spending on snacks increased 2 percent and spending on breakfasts was up 9 percent. The Bureau of Labor Statistics reports that during an average week of 2003, fully 71 of households purchased food from restaurants and carry-outs, spending an average of $49.57. The average household spent $1,832 at restaurants and carry-outs in 2003. This ﬁgure was 59 percent as much the average household spent on groceries ($3,129). Among some demographic segments, the proportion of the food dollar devoted to restaurants is even higher. Householders under age 25 spend 80 percent as much eating out as on groceries. Among households with incomes of $100,000 or more, the ﬁgure is 85 percent. People who live alone spend 74 percent as much eating out as on groceries. Households devote slightly more of their restaurant dollars to dinners (40 percent) than to lunches (36 percent). Snacks account for another 14 percent and breakfasts for 10 percent. The average household devotes almost equal shares of the eating-out dollar to full-service and to fast-food restaurants. Of the $1,832 spent on eating out by the average household in 2003, fast-food restaurants captured a 47 percent share, while full-service restaurants took 46 percent. The remainder was spent at employer and school cafeterias, vending machines, and mobile vendors. Older Americans, particularly empty-nesters, are far more likely to choose full-service over fast-food restaurants. Among householders under age 25, fast-food meals claim 57 percent of the restaurant budget, while full-service gets just 35 percent. The fast-food share declines with age and drops below the full-service share in the 55-to-64 age group (39 percent fast-food versus 56 percent full-service). The demands of children explain changing restaurant preferences with age. Among household types, single parents and married couples with children under age 18 are least likely to devote their dining-out dollars to full-service restaurants. In contrast, the household type most likely to spend its dining-out dollars in full-service restaurants is married couples without children at home (most of them empty-nesters). Couples without children at home devote fully 60 percent of their restaurant dollars to full-service establishments and only 37 percent to fast food.

Spending by age Not surprisingly, the middle-aged, who have the highest incomes and the largest households, spend the most at restaurants and carry-outs. Overall, householders aged 35 to 54 spend 19 to 22 percent more than the average household at restaurants and carry-outs. But householders aged 25 to 44 spend the most on fast-food breakfasts, lunches, and dinners, while householders aged 45 to 54 spend the most on full-service lunches and dinners. Householders aged 65 to 74 are the biggest spenders on full-service breakfasts.

Spending by household income The most afﬂuent households spend much more than average at restaurants and carry-outs. In 2003, households with incomes of $100,000 or more spent more than twice the average at res-

14 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

taurants and carry-outs. The $100,000-or-more income group accounts for 24 percent of household spending on eating out—double their 12 percent share of households. These afﬂuent households control one-third of spending on full-service restaurant dinners.

Spending byhHousehold type Married couples with school-aged children spend more on eating out than any other household type—44 percent more than average in 2003. Married couples without children at home (most of them empty-nesters) spend 40 percent more than average on full-service lunches, 46 percent more on full-service dinners, and 46 percent more on full-service breakfasts. Single parents are aboveaverage spenders on lunch from employer and school cafeterias.

Spending by race and Hispanic origin Asian households spend 28 percent more than the average household on restaurant meals—more than any other racial or ethnic group. Hispanic households spend an average amount, while black households spend 35 percent less than average eating out. Asians are the biggest spenders on both fast-food and full-service lunches. They are also the biggest spenders on full-service dinners. Hispanics spend the most on fast-food dinners and fast-food breakfasts, with indexes of 117 and 125, respectively. Blacks spend more than the average household at employer and school cafeterias.

Spending by region Average annual household spending on restaurant and carry-out food is highest in the West ($2,001) and lowest in the South ($1,671). Households in the Northeast are the biggest spenders on full-service dinners (29 percent above average) but only average spenders on full-service lunches. Households in the West are the biggest spenders on full-service breakfasts.

Spending by education Spending on eating out rises with education, in part because educated householders have higher incomes. College graduates spend 36 percent more than the average household at restaurants and carry-outs, with spending 56 to 65 percent above average on full-service lunches and dinners. College graduates control more than 40 percent of spending on full-service lunches and dinners.

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 15

Table 3. Restaurant and Carry-Out Spending, 2000 and 2003 (average annual and percent distribution of household spending at restaurants and carry-outs, 2000 and 2003; percent change in spending, 2000–03; in 2003 dollars) 2003 average household spending AVERAGE HOUSEHOLD SPENDING AT RESTAURANTS AND CARRY-OUTS

Dinner At full-service restaurants At fast food, take-out, delivery, buffets, and cafeterias (except employer and school)

$1,831.97 737.51 517.42 215.93 369.02

2000 percent distribution 100.0% 40.3 28.2 11.8 20.1

average household spending (in 2003$) $1,870.26 745.82 521.12 221.10 393.21

percent distribution 100.0% 39.9 27.9 11.8 21.0

percent change 2000–03 –2.0% –1.1 –0.7 –2.3 –6.2

Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At employer and school cafeterias

658.16

35.9

708.32

37.9

–7.1

369.02 210.10 73.48

20.1 11.5 4.0

393.21 222.38 85.76

21.0 11.9 4.6

–6.2 –5.5 –14.3

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At vending machines, mobile vendors At full-service restaurants At employer and school cafeterias

248.42 180.26 369.02 31.33 26.66 10.16

13.6 9.8 20.1 1.7 1.5 0.6

243.31 169.41 393.21 41.16 21.53 11.21

13.0 9.1 21.0 2.2 1.2 0.6

2.1 6.4 –6.2 –23.9 23.8 –9.4

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants

187.89 92.82 369.02 89.42

10.3 5.1 20.1 4.9

172.81 82.40 393.21 85.10

9.2 4.4 21.0 4.5

8.7 12.6 –6.2 5.1

Note: Numbers may not add to totals by category because not all subcategories are shown. Source: Bureau of Labor Statistics, 2000 and 2003 Consumer Expenditure Surveys; calculations by New Strategist

16 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 4. Restaurants and Carry-Outs: Average spending by age, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2003) total consumer units 115,356 2.5 $51,128.00 40,817.33

under 25 8,584 1.8 $20,680.00 22,395.53

25 to 34 19,737 2.9 $50,389.00 40,525.22

35 to 44 24,413 3.2 $61,091.00 47,175.06

45 to 54 23,131 2.6 $68,028.00 50,100.86

55 to 64 16,580 2.1 $58,672.00 44,190.65

65 to 74 11,495 1.9 $35,314.00 33,629.17

75+ 11,417 1.5 $25,492.00 25,016.38

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,831.97 658.16

1,406.19 505.21

2,037.30 763.29

2,234.62 859.39

2,176.38 780.16

1,706.30 550.75

1,379.39 444.14

829.69 265.57

369.02 210.10 5.56 73.48

347.37 117.93 2.13 37.77

480.77 203.65 7.50 71.36

469.27 229.30 6.31 154.51

431.68 254.33 6.80 87.35

277.14 226.03 5.46 42.12

226.75 198.55 3.46 15.38

109.86 147.94 2.82 4.95

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

737.51

498.38

784.50

847.75

877.28

790.27

611.42

355.18

215.93 517.42 1.32 2.83

175.48 307.00 3.69 12.21

264.57 516.44 – 3.48

291.05 554.11 1.37 1.23

248.48 623.28 1.76 3.76

179.50 609.65 – 1.12

120.37 488.56 1.56 0.93

77.85 274.93 2.40 –

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

248.42

264.43

290.46

307.91

302.26

200.50

157.13

76.73

180.26 26.66 31.33 10.16

189.26 22.04 41.21 11.92

214.00 27.61 40.22 8.63

222.59 26.57 41.71 17.04

218.71 32.71 38.77 12.07

145.65 24.26 21.64 8.95

116.33 25.38 11.66 3.75

52.41 20.74 2.84 0.75

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

187.89

138.18

199.06

219.57

216.69

164.78

166.71

132.21

92.82 89.42 1.37 4.27

88.14 45.21 1.09 3.74

113.99 79.89 1.56 3.63

116.48 93.74 1.83 7.52

109.90 101.22 1.07 4.51

65.54 91.95 2.23 5.07

59.63 105.44 0.51 1.12

43.88 87.45 0.52 0.34

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 17

Table 5. Restaurants and Carry-Outs: Indexed spending by age, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2003; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total consumer units $40,817 100

under 25 $22,396 55

25 to 34 $40,525 99

35 to 44 $47,125 116

45 to 54 $50,101 123

55 to 64 $44,191 108

65 to 74 $33,629 82

75+ $25,016 61

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

77 77

111 116

122 131

119 119

93 84

75 67

45 40

100 100 100 100

94 56 38 51

130 97 135 97

127 109 113 210

117 121 122 119

75 108 98 57

61 95 62 21

30 70 51 7

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

68

106

115

119

107

83

48

100 100 100 100

81 59 280 431

123 100 – 123

135 107 104 43

115 120 133 133

83 118 – 40

56 94 118 33

36 53 182 –

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

106

117

124

122

81

63

31

100 100 100 100

105 83 132 117

119 104 128 85

123 100 133 168

121 123 124 119

81 91 69 88

65 95 37 37

29 78 9 7

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

74

106

117

115

88

89

70

100 100 100 100

95 51 80 88

123 89 114 85

125 105 134 176

118 113 78 106

71 103 163 119

64 118 37 26

47 98 38 8

Average spending of CU, total Average spending of CU, index

Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

18 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 6. Restaurants and Carry-Outs: Total spending by age, 2003 (total annual spending on restaurant and carry-out food, by consumer unit (CU) age group, 2003; consumer units and dollars in thousands)

Number of consumer units Total spending of all CUs

total consumer units 115,356 $4,708,523,919

RESTAURANTS AND CARRY-OUTS 211,328,731 Lunch 75,922,705 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 42,568,671 At full-service restaurants 24,236,296 At vending machines, mobile vendors 641,379 At employer and school cafeterias 8,476,359

under 25 8,584 $192,243,230

25 to 34 35 to 44 45 to 54 19,737 24,413 23,131 $799,846,267 $1,151,684,740 $1,158,882,993

55 to 64 16,580 $732,680,977

65 to 74 11,495 $386,567,309

75+ 11,417 $285,612,010

12,070,735 4,336,723

40,210,190 15,065,055

54,553,778 20,980,288

50,341,846 18,045,881

28,290,454 9,131,435

15,856,088 5,105,389

9,472,571 3,032,013

2,981,824 1,012,311 18,284 324,218

9,488,957 4,019,440 148,028 1,408,432

11,456,289 5,597,901 154,046 3,772,053

9,985,190 5,882,907 157,291 2,020,493

4,594,981 3,747,577 90,527 698,350

2,606,491 2,282,332 39,773 176,793

1,254,272 1,689,031 32,196 56,514

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

85,076,204

4,278,094

15,483,677

20,696,121

20,292,364

13,102,677

7,028,273

4,055,090

24,908,821 59,687,502 152,270 326,457

1,506,320 2,635,288 31,675 104,811

5,221,818 10,192,976 – 68,685

7,105,404 13,527,487 33,446 30,028

5,747,591 14,417,090 40,711 86,973

2,976,110 10,107,997 – 18,570

1,383,653 5,615,997 17,932 10,690

888,813 3,138,876 27,401 –

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28,656,738

2,269,867

5,732,809

7,517,007

6,991,576

3,324,290

1,806,209

876,026

20,794,073 3,075,391 3,614,103 1,172,017

1,624,608 189,191 353,747 102,321

4,223,718 544,939 793,822 170,330

5,434,090 648,653 1,018,266 415,998

5,058,981 756,615 896,789 279,191

2,414,877 402,231 358,791 148,391

1,337,213 291,743 134,032 43,106

598,365 236,789 32,424 8,563

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

21,674,239

1,186,137

3,928,847

5,360,362

5,012,256

2,732,052

1,916,331

1,509,442

10,707,344 10,315,134 158,038 492,570

756,594 388,083 9,357 32,104

2,249,821 1,576,789 30,790 71,645

2,843,626 2,288,475 44,676 183,586

2,542,097 2,341,320 24,750 104,321

1,086,653 1,524,531 36,973 84,061

685,447 1,212,033 5,862 12,874

500,978 998,417 5,937 3,882

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 19

Table 7. Restaurants and Carry-Outs: Market shares by age, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer unit age groups, 2003)

Share of total consumer units Share of total before-tax income Share of total spending

total consumer units 100.0% 100.0 100.0

under 25 7.4% 3.0 4.1

25 to 34 17.1% 16.9 17.0

35 to 44 21.2% 25.3 24.5

45 to 54 20.1% 26.7 24.6

55 to 64 14.4% 16.5 15.6

65 to 74 10.0% 6.9 8.2

75+ 9.9% 4.9 6.1

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

5.7 5.7

19.0 19.8

25.8 27.6

23.8 23.8

13.4 12.0

7.5 6.7

4.5 4.0

100.0 100.0 100.0 100.0

7.0 4.2 2.9 3.8

22.3 16.6 23.1 16.6

26.9 23.1 24.0 44.5

23.5 24.3 24.5 23.8

10.8 15.5 14.1 8.2

6.1 9.4 6.2 2.1

2.9 7.0 5.0 0.7

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

5.0

18.2

24.3

23.9

15.4

8.3

4.8

100.0 100.0 100.0 100.0

6.0 4.4 20.8 32.1

21.0 17.1 – 21.0

28.5 22.7 22.0 9.2

23.1 24.2 26.7 26.6

11.9 16.9 – 5.7

5.6 9.4 11.8 3.3

3.6 5.3 18.0 –

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

7.9

20.0

26.2

24.4

11.6

6.3

3.1

100.0 100.0 100.0 100.0

7.8 6.2 9.8 8.7

20.3 17.7 22.0 14.5

26.1 21.1 28.2 35.5

24.3 24.6 24.8 23.8

11.6 13.1 9.9 12.7

6.4 9.5 3.7 3.7

2.9 7.7 0.9 0.7

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

5.5

18.1

24.7

23.1

12.6

8.8

7.0

100.0 100.0 100.0 100.0

7.1 3.8 5.9 6.5

21.0 15.3 19.5 14.5

26.6 22.2 28.3 37.3

23.7 22.7 15.7 21.2

10.1 14.8 23.4 17.1

6.4 11.8 3.7 2.6

4.7 9.7 3.8 0.8

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

20 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 8. Restaurants and Carry-Outs: Average spending by income, 2003 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units (CU), 2003; complete income reporters only) total complete reporters

under $20,000

$20,000– $39,999

$40,000– $49,999

$50,000– $69,999

$70,000– $79,999

$80,000– $99,999

$100,000 or more

97,391 2.5 $51,128.00 42,741.66

27,100 1.8 $10,752.55 19,862.52

23,941 2.4 $29,072.57 31,684.32

8,891 2.6 $44,294.00 39,756.91

13,890 2.8 $58,900.00 49,788.99

5,121 3.0 $74,560.00 57,128.14

6,909 3.0 $88,832.00 65,957.39

11,537 3.1 $154,665.00 93,514.86

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,956.55 706.60

973.26 348.87

1,445.26 550.11

1,959.55 727.62

2,346.98 869.03

2,686.70 1,027.69

3,077.75 1,072.71

4,016.64 1,347.36

395.14 225.04 6.88 79.54

226.17 97.49 2.46 22.75

331.71 157.94 7.77 52.68

425.06 207.46 2.74 92.36

450.43 286.03 15.96 116.61

621.94 275.29 4.67 125.79

556.25 337.76 9.11 169.58

658.36 535.52 7.75 145.74

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

774.13

345.90

507.04

712.90

879.42

1,043.59

1,291.26

1,909.31

233.57 535.73 1.45 3.39

129.41 213.04 1.78 2.21

187.07 315.01 1.22 3.74

237.34 467.78 1.99 5.79

285.96 585.44 3.77 4.25

332.96 708.04 – 2.60

367.28 920.45 – 3.53

400.11 1,506.10 – 2.50

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

274.05

165.49

215.68

306.88

340.65

359.52

428.20

428.21

198.42 28.59 35.06 11.98

115.74 20.21 21.68 7.86

153.48 24.27 28.92 9.01

230.17 28.62 39.17 8.93

240.61 41.58 47.96 10.49

266.53 27.59 51.52 13.89

308.81 37.55 61.18 20.65

324.46 37.62 38.61 27.52

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

201.77

113.00

172.43

212.15

257.89

255.89

285.59

331.75

99.14 95.93 1.67 5.02

62.14 47.48 1.50 1.88

91.14 76.24 1.69 3.35

116.55 85.35 0.49 9.77

117.86 132.26 2.17 5.60

135.79 109.45 4.60 6.05

124.05 151.52 0.78 9.24

138.16 183.26 1.80 8.53

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 21

Table 9. Restaurants and Carry-Outs: Indexed spending by income, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by before-tax income of consumer unit, 2003; complete income reporters only; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total complete reporters

under $20,000

$20,000– $39,999

$40,000– $49,999

$50,000– $69,999

$70,000– $79,999

$80,000– $99,999

$100,000 or more

$42,742 100

$19,863 46

$31,684 74

$39,757 93

$49,789 116

$57,128 134

$65,957 154

$93,515 219

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

50 49

74 78

100 103

120 123

137 145

157 152

205 191

100 100 100 100

57 43 36 29

84 70 113 66

108 92 40 116

114 127 232 147

157 122 68 158

141 150 132 213

167 238 113 183

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

45

65

92

114

135

167

247

100 100 100 100

55 40 123 65

80 59 84 110

102 87 137 171

122 109 260 125

143 132 – 77

157 172 – 104

171 281 – 74

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

60

79

112

124

131

156

156

100 100 100 100

58 71 62 66

77 85 82 75

116 100 112 75

121 145 137 88

134 97 147 116

156 131 175 172

164 132 110 230

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

56

85

105

128

127

142

164

100 100 100 100

63 49 90 37

92 79 101 67

118 89 29 195

119 138 130 112

137 114 275 121

125 158 47 184

139 191 108 170

Average spending of CU, total Average spending of CU, index

Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

22 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 10. Restaurants and Carry-Outs: Total spending by income, 2003 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units (CU), 2003; complete income reporters only; consumer units and dollars in thousands) total complete reporters

under $20,000

$20,000– $39,999

$40,000– $49,999

$50,000– $69,999

$70,000– $79,999

97,391 $4,162,653,009

27,100 $538,274,380

23,941 $758,554,310

8,891 $353,478,687

13,890 $691,569,071

5,121 $292,553,205

RESTAURANTS AND CARRY-OUTS 190,550,361 Lunch 68,816,481 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 38,483,080 At full-service restaurants 21,916,871 At vending machines, mobile vendors 670,050 At employer and school cafeterias 7,746,480

26,375,366 9,454,348

34,600,876 13,170,175

17,422,359 6,469,269

32,599,552 12,070,827

13,758,591 5,262,800

21,264,175 7,411,353

46,339,976 15,544,492

6,129,081 2,642,066 66,772 616,429

7,941,375 3,781,268 186,138 1,261,261

3,779,208 1,844,527 24,361 821,173

6,256,473 3,972,957 221,684 1,619,713

3,184,955 1,409,760 23,915 644,171

3,843,131 2,333,584 62,941 1,171,628

7,595,499 6,178,294 89,412 1,681,402

Number of consumer units Total spending of all CUs

$80,000– $99,999

$100,000 or more

6,909 11,537 $455,699,608 $1,078,880,940

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

75,393,295

9,373,782

12,139,002

6,338,394

12,215,144

5,344,224

8,921,315

22,027,709

22,747,616 52,175,280 141,217 330,155

3,506,918 5,773,386 48,221 59,896

4,478,669 7,541,737 29,153 89,551

2,110,190 4,159,032 17,693 51,479

3,971,984 8,131,762 52,365 59,033

1,705,088 3,625,873 – 13,315

2,537,538 6,359,389 – 24,389

4,616,069 17,375,876 – 28,843

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

26,690,004

4,484,885

5,163,605

2,728,470

4,731,629

1,841,102

2,958,434

4,940,259

19,324,322 2,784,409 3,414,528 1,166,744

3,136,421 547,799 587,527 213,026

3,674,488 581,098 692,358 215,660

2,046,441 254,460 348,260 79,397

3,342,073 577,546 666,164 145,706

1,364,900 141,288 263,834 71,131

2,133,568 259,433 422,693 142,671

3,743,295 434,022 445,444 317,498

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

19,650,582

3,062,423

4,128,095

1,886,226

3,582,092

1,310,413

1,973,141

3,827,400

9,655,344 9,342,719 162,643 488,903

1,683,943 1,286,766 40,781 50,934

2,182,040 1,825,201 40,572 80,282

1,036,246 758,847 4,357 86,865

1,637,075 1,837,091 30,141 77,784

695,381 560,493 23,557 30,982

857,061 1,046,852 5,389 63,839

1,593,952 2,114,271 20,767 98,411

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 23

Table 11. Restaurants and Carry-Outs: Market shares by income, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units, 2003; complete income reporters only) total complete reporters

under $20,000

$20,000– $39,999

$40,000– $49,999

$50,000– $69,999

$70,000– $79,999

$80,000– $99,999

$100,000 or more

Share of total consumer units Share of total before-tax income Share of total spending

100.0% 100.0 100.0

27.8% 5.9 12.9

24.6% 14.0 18.2

9.1% 7.9 8.5

14.3% 16.4 16.6

5.3% 7.7 7.0

7.1% 12.3 10.9

11.8% 35.8 25.9

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

13.8 13.7

18.2 19.1

9.1 9.4

17.1 17.5

7.2 7.6

11.2 10.8

24.3 22.6

100.0 100.0 100.0 100.0

15.9 12.1 10.0 8.0

20.6 17.3 27.8 16.3

9.8 8.4 3.6 10.6

16.3 18.1 33.1 20.9

8.3 6.4 3.6 8.3

10.0 10.6 9.4 15.1

19.7 28.2 13.3 21.7

100.0

12.4

16.1

8.4

16.2

7.1

11.8

29.2

100.0 100.0 100.0 100.0

15.4 11.1 34.1 18.1

19.7 14.5 20.6 27.1

9.3 8.0 12.5 15.6

17.5 15.6 37.1 17.9

7.5 6.9 – 4.0

11.2 12.2 – 7.4

20.3 33.3 – 8.7

100.0

16.8

19.3

10.2

17.7

6.9

11.1

18.5

100.0 100.0 100.0 100.0

16.2 19.7 17.2 18.3

19.0 20.9 20.3 18.5

10.6 9.1 10.2 6.8

17.3 20.7 19.5 12.5

7.1 5.1 7.7 6.1

11.0 9.3 12.4 12.2

19.4 15.6 13.0 27.2

100.0

15.6

21.0

9.6

18.2

6.7

10.0

19.5

100.0 100.0 100.0 100.0

17.4 13.8 25.1 10.4

22.6 19.5 24.9 16.4

10.7 8.1 2.7 17.8

17.0 19.7 18.5 15.9

7.2 6.0 14.5 6.3

8.9 11.2 3.3 13.1

16.5 22.6 12.8 20.1

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

24 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 12. Restaurants and Carry-Outs: Average spending by high-income consumer units, 2003 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units (CU) with high incomes, 2003; complete income reporters only) total complete reporters

$100,000 or more

$100,000– $119,999

$120,000– $149,999

$150,000 or more

97,391 2.5 $51,128.00 42,741.66

11,537 3.1 $154,665.00 93,514.86

4,384 3.1 $108,087.00 75,601.50

3,151 3.1 $131,885.00 86,451.46

4,002 3.1 $223,634.00 118,674.11

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,956.55 706.60

4,016.64 1,347.36

3,501.12 1,120.56

3,813.56 1,377.01

4,734.74 1,570.91

395.14 225.04 6.88 79.54

658.36 535.52 7.75 145.74

635.27 352.08 12.63 120.58

625.19 526.06 5.24 220.51

709.21 742.28 4.39 115.03

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

774.13

1,909.31

1,695.72

1,644.60

2,347.03

233.57 535.73 1.45 3.39

400.11 1,506.10 – 2.50

378.18 1,317.32 – 0.23

368.21 1,267.65 – 6.52

448.72 1,896.47 – 1.84

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

274.05

428.21

355.19

428.81

507.14

198.42 28.59 35.06 11.98

324.46 37.62 38.61 27.52

275.83 23.51 37.79 18.06

318.50 32.30 35.74 42.26

381.95 57.10 41.73 26.36

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

201.77

331.75

329.65

363.15

309.66

99.14 95.93 1.67 5.02

138.16 183.26 1.80 8.53

146.59 171.74 2.30 9.02

151.36 201.39 0.01 10.39

118.75 181.71 2.65 6.55

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 25

Table 13. Restaurants and Carry-Outs: Indexed spending by high-income consumer units, 2003 (indexed average annual spending of consumer units (CU) with high incomes on restaurant and carry-out food, by before-tax income of consumer unit, 2003; complete income reporters only; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total complete reporters

$100,000 or more

$100,000– $119,999

$120,000– $149,999

$150,000 or more

$42,742 100

$93,515 219

$75,602 177

$86,451 202

$118,674 278

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

205 191

179 159

195 195

242 222

100 100 100 100

167 238 113 183

161 156 184 152

158 234 76 277

179 330 64 145

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

247

219

212

303

100 100 100 100

171 281 – 74

162 246 – 7

158 237 – 192

192 354 – 54

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

156

130

156

185

100 100 100 100

164 132 110 230

139 82 108 151

161 113 102 353

192 200 119 220

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

164

163

180

153

100 100 100 100

139 191 108 170

148 179 138 180

153 210 1 207

120 189 159 130

Average spending of CU, total Average spending of CU, index

Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

26 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 14. Restaurants and Carry-Outs: Total spending by high-income consumer units, 2003 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units (CU) with high incomes, 2003; complete income reporters only; consumer units and dollars in thousands) total complete reporters 97,391 $4,162,653,009

$100,000 or more 11,537 $1,078,880,940

$100,000– $119,999 4,384 $331,436,976

$120,000– $149,999 3,151 $272,408,550

$150,000 or more 4,002 $474,933,788

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

190,550,361 68,816,481

46,339,976 15,544,492

15,348,910 4,912,535

12,016,528 4,338,959

18,948,429 6,286,782

38,483,080 21,916,871 670,050 7,746,480

7,595,499 6,178,294 89,412 1,681,402

2,785,024 1,543,519 55,370 528,623

1,969,974 1,657,615 16,511 694,827

2,838,258 2,970,605 17,569 460,350

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

75,393,295

22,027,709

7,434,036

5,182,135

9,392,814

22,747,616 52,175,280 141,217 330,155

4,616,069 17,375,876 – 28,843

1,657,941 5,775,131 – 1,008

1,160,230 3,994,365 – 20,545

1,795,777 7,589,673 – 7,364

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

26,690,004

4,940,259

1,557,153

1,351,180

2,029,574

19,324,322 2,784,409 3,414,528 1,166,744

3,743,295 434,022 445,444 317,498

1,209,239 103,068 165,671 79,175

1,003,594 101,777 112,617 133,161

1,528,564 228,514 167,003 105,493

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

19,650,582

3,827,400

1,445,186

1,144,286

1,239,259

9,655,344 9,342,719 162,643 488,903

1,593,952 2,114,271 20,767 98,411

642,651 752,908 10,083 39,544

476,935 634,580 32 32,739

475,238 727,203 10,605 26,213

Number of consumer units Total spending of all CUs

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 27

Table 15. Restaurants and Carry-Outs: Market shares by high-income consumer units, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units with high incomes, 2003; complete income reporters only) total complete reporters

$100,000 or more

$100,000– $119,999

$120,000– $149,999

$150,000 or more

Share of total consumer units Share of total before-tax income Share of total spending

100.0% 100.0 100.0

11.8% 35.8 25.9

4.5% 9.5 8.0

3.2% 8.3 6.5

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

24.3 22.6

8.1 7.1

6.3 6.3

9.9 9.1

100.0 100.0 100.0 100.0

19.7 28.2 13.3 21.7

7.2 7.0 8.3 6.8

5.1 7.6 2.5 9.0

7.4 13.6 2.6 5.9

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

29.2

9.9

6.9

12.5

100.0 100.0 100.0 100.0

20.3 33.3 – 8.7

7.3 11.1 – 0.3

5.1 7.7 – 6.2

7.9 14.5 – 2.2

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

18.5

5.8

5.1

7.6

100.0 100.0 100.0 100.0

19.4 15.6 13.0 27.2

6.3 3.7 4.9 6.8

5.2 3.7 3.3 11.4

7.9 8.2 4.9 9.0

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

19.5

7.4

5.8

6.3

100.0 100.0 100.0 100.0

16.5 22.6 12.8 20.1

6.7 8.1 6.2 8.1

4.9 6.8 0.0 6.7

4.9 7.8 6.5 5.4

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

28 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

4.1% 18.0 11.4

Table 16. Restaurants and Carry-Outs: Average spending by household type, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by type of consumer unit, 2003)

total consumer units

total married couples

married couples, no children

115,356 2.5 $51,128.00 40,817.33

58,448 3.2 $69,472.00 53,030.03

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,831.97 658.16

married couples with children total

oldest child under 6

oldest child 6 to 17

oldest child 18 or older

single parent, at least one child <18

single person

25,132 2.0 $62,930.00 47,895.65

28,584 3.9 $75,557.00 57,702.32

5,496 3.5 $66,317.00 51,503.24

15,047 4.1 $77,508.00 59,183.18

8,041 4.0 $78,307.00 59,180.36

6,999 2.9 $29,154.00 30,534.75

33,929 1.0 $27,131.00 23,657.35

2,279.14 811.81

2,023.47 645.86

2,494.82 942.13

1,987.69 730.52

2,630.95 1,018.52

2,590.24 942.02

1,553.33 618.38

1,127.43 393.63

369.02 210.10 5.56 73.48

439.18 260.00 7.01 105.63

316.58 294.79 3.94 30.55

525.48 242.57 7.32 166.76

505.02 179.93 4.19 41.39

532.82 240.30 8.77 236.63

525.57 293.27 6.66 116.51

379.05 126.52 2.83 109.97

218.23 149.40 4.09 21.91

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

737.51

952.14

943.96

968.53

768.40

998.32

1,054.98

484.44

441.87

215.93 517.42 1.32 2.83

274.46 675.00 1.00 1.68

186.25 754.65 1.45 1.60

341.19 625.08 0.75 1.52

303.57 463.80 – 1.03

359.73 636.10 1.39 1.09

331.03 721.22 – 2.73

238.96 243.71 0.71 1.06

106.01 330.14 0.89 4.84

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

248.42

290.44

221.28

348.51

298.58

361.71

358.34

269.37

163.58

180.26 26.66 31.33 10.16

211.98 29.49 36.92 12.05

158.65 32.94 21.94 7.76

255.55 27.61 49.67 15.69

230.46 21.96 40.41 5.75

259.18 25.91 55.65 20.97

266.61 35.23 44.28 12.22

196.56 26.55 29.57 16.68

117.64 21.28 19.45 5.21

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

187.89

224.75

212.37

235.64

190.19

252.41

234.89

181.15

128.34

92.82 89.42 1.37 4.27

103.85 115.09 1.61 4.21

79.03 130.89 0.68 1.77

121.97 104.81 2.57 6.30

96.91 88.07 1.97 3.24

132.51 108.31 3.56 8.03

118.91 109.98 1.00 5.01

120.13 49.90 2.45 8.68

63.68 60.05 0.75 3.86

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 29

Table 17. Restaurants and Carry-Outs: Indexed spending by household type, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by type of consumer unit, 2003; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units)

total consumer units

total married couples

married couples, no children

$40,817 100

$53,030 130

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

married couples with children total

oldest child under 6

oldest child 6 to 17

oldest child 18 or older

single parent, at least one child <18

single person

$47,896 117

$57,702 141

$51,503 126

$59,183 145

$59,180 145

$30,535 75

$23,657 58

124 123

110 98

136 143

109 111

144 155

141 143

85 94

62 60

100 100 100 100

119 124 126 144

86 140 71 42

142 115 132 227

137 86 75 56

144 114 158 322

142 140 120 159

103 60 51 150

59 71 74 30

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

129

128

131

104

135

143

66

60

100 100 100 100

127 130 76 59

86 146 110 57

158 121 57 54

141 90 – 36

167 123 105 39

153 139 – 96

111 47 54 37

49 64 67 171

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

117

89

140

120

146

144

108

66

100 100 100 100

118 111 118 119

88 124 70 76

142 104 159 154

128 82 129 57

144 97 178 206

148 132 141 120

109 100 94 164

65 80 62 51

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

120

113

125

101

134

125

96

68

100 100 100 100

112 129 118 99

85 146 50 41

131 117 188 148

104 98 144 76

143 121 260 188

128 123 73 117

129 56 179 203

69 67 55 90

Average spending of CU, total Average spending of CU, index

Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

30 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 18. Restaurants and Carry-Outs: Total spending by household type, 2003 (total annual spending on restaurant and carry-out food, by consumer unit (CU) type, 2002; consumer units and dollars in thousands)

Number of consumer units Total spending of all CUs

total 28,584

oldest child 6 to 17 15,047

oldest child 18 or older 8,041

single parent, at least one child <18 6,999

single person 33,929

$4,708,523,919 $3,099,499,193 $1,203,713,476 $1,649,363,115

$283,061,807

$890,529,309

$475,869,275

$213,712,715

$802,670,228

RESTAURANTS AND CARRY-OUTS 211,328,731 Lunch 75,922,705 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 42,568,671 At full-service restaurants 24,236,296 At vending machines, mobile vendors 641,379 At employer and school cafeterias 8,476,359

total married couples 58,448

married couples, no children 25,132

married couples with children oldest child under 6 5,496

total consumer units 115,356

133,211,175 47,448,671

50,853,848 16,231,754

71,311,935 26,929,844

10,924,344 4,014,938

39,587,905 15,325,670

20,828,120 7,574,783

10,871,757 4,328,042

38,252,572 13,355,472

25,669,193 15,196,480 409,720 6,173,862

7,956,289 7,408,662 99,020 767,783

15,020,320 6,933,621 209,235 4,766,668

2,775,590 988,895 23,028 227,479

8,017,343 3,615,794 131,962 3,560,572

4,226,108 2,358,184 53,553 936,857

2,652,971 885,513 19,807 769,680

7,404,326 5,068,993 138,770 743,384

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

85,076,204

55,650,679

23,723,603

27,684,462

4,223,126

15,021,721

8,483,094

3,390,596

14,992,207

24,908,821 59,687,502 152,270 326,457

16,041,638 39,452,400 58,448 98,193

4,680,835 18,965,864 36,441 40,211

9,752,575 17,867,287 21,438 43,448

1,668,421 2,549,045 – 5,661

5,412,857 9,571,397 20,915 16,401

2,661,812 5,799,330 – 21,952

1,672,481 1,705,726 4,969 7,419

3,596,813 11,201,320 30,197 164,216

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28,656,738

16,975,637

5,561,209

9,961,810

1,640,996

5,442,650

2,881,412

1,885,321

5,550,106

20,794,073 3,075,391 3,614,103 1,172,017

12,389,807 1,723,632 2,157,900 704,298

3,987,192 827,848 551,396 195,024

7,304,641 789,204 1,419,767 448,483

1,266,608 120,692 222,093 31,602

3,899,881 389,868 837,366 315,536

2,143,811 283,284 356,055 98,261

1,375,723 185,823 206,960 116,743

3,991,408 722,009 659,919 176,770

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

21,674,239

13,136,188

5,337,283

6,735,534

1,045,284

3,798,013

1,888,750

1,267,869

4,354,448

10,707,344 10,315,134 158,038 492,570

6,069,825 6,726,780 94,101 246,066

1,986,182 3,289,527 17,090 44,484

3,486,390 2,995,889 73,461 180,079

532,617 484,033 10,827 17,807

1,993,878 1,629,741 53,567 120,827

956,155 884,349 8,041 40,285

840,790 349,250 17,148 60,751

2,160,599 2,037,436 25,447 130,966

Note: Numbers will not add to total because not all types of consumer units are shown. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 31

Table 19. Restaurants and Carry-Outs: Market shares by household type, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by types of consumer units, 2003)

Share of total consumer units Share of total before-tax income Share of total spending

total consumer units 100.0% 100.0 100.0

total married couples 50.7% 68.8 65.8

married couples, no children 21.8% 26.8 25.6

married couples with children total 24.8% 36.6 35.0

oldest child under 6 4.8% 6.2 6.0

oldest child 6 to 17 13.0% 19.8 18.9

oldest child 18 or older 7.0% 10.7 10.1

single parent, at least one child <18 6.1% 3.5 4.5

single person 29.4% 15.6 17.0

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

63.0 62.5

24.1 21.4

33.7 35.5

5.2 5.3

18.7 20.2

9.9 10.0

5.1 5.7

18.1 17.6

100.0 100.0 100.0 100.0

60.3 62.7 63.9 72.8

18.7 30.6 15.4 9.1

35.3 28.6 32.6 56.2

6.5 4.1 3.6 2.7

18.8 14.9 20.6 42.0

9.9 9.7 8.3 11.1

6.2 3.7 3.1 9.1

17.4 20.9 21.6 8.8

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

65.4

27.9

32.5

5.0

17.7

10.0

4.0

17.6

100.0 100.0 100.0 100.0

64.4 66.1 38.4 30.1

18.8 31.8 23.9 12.3

39.2 29.9 14.1 13.3

6.7 4.3 – 1.7

21.7 16.0 13.7 5.0

10.7 9.7 – 6.7

6.7 2.9 3.3 2.3

14.4 18.8 19.8 50.3

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

59.2

19.4

34.8

5.7

19.0

10.1

6.6

19.4

100.0 100.0 100.0 100.0

59.6 56.0 59.7 60.1

19.2 26.9 15.3 16.6

35.1 25.7 39.3 38.3

6.1 3.9 6.1 2.7

18.8 12.7 23.2 26.9

10.3 9.2 9.9 8.4

6.6 6.0 5.7 10.0

19.2 23.5 18.3 15.1

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

60.6

24.6

31.1

4.8

17.5

8.7

5.8

20.1

100.0 100.0 100.0 100.0

56.7 65.2 59.5 50.0

18.5 31.9 10.8 9.0

32.6 29.0 46.5 36.6

5.0 4.7 6.9 3.6

18.6 15.8 33.9 24.5

8.9 8.6 5.1 8.2

7.9 3.4 10.9 12.3

20.2 19.8 16.1 26.6

Note: Market shares by type of consumer unit will not add to total because not all types of consumer units are shown. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

32 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 20. Restaurants and Carry-Outs: Average spending by race and Hispanic origin, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by race and Hispanic origin of consumer unit reference person, 2003) race total consumer units

Asian

115,356 2.5 $51,128.00 40,817.33

3,573 2.8 $60,393.00 44,922.85

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,831.97 658.16

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Hispanic origin

black

white and other

Hispanic

non-Hispanic

13,743 2.6 $34,485.00 28,707.56

98,041 2.5 $53,039.00 42,360.25

11,727 3.3 $37,150.00 34,574.75

103,629 2.4 $52,797.00 41,520.78

2,346.25 952.83

1,197.91 479.64

1,899.72 671.36

1,855.13 706.16

1,829.06 652.13

369.02 210.10 5.56 73.48

495.99 367.97 4.98 83.89

311.69 83.70 2.93 81.32

372.00 221.44 5.95 71.98

437.83 181.28 16.07 70.99

360.38 213.72 4.24 73.79

737.51

962.34

381.54

778.04

670.90

745.87

215.93 517.42 1.32 2.83

240.69 719.15 – 2.49

173.67 200.86 – 7.01

220.82 553.40 1.55 2.27

253.15 414.67 1.57 1.51

211.26 530.33 1.28 3.00

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

248.42

243.36

198.68

255.51

267.56

246.01

180.26 26.66 31.33 10.16

177.64 27.51 20.22 17.99

131.52 21.58 34.51 11.08

187.12 27.33 31.32 9.73

181.27 28.45 46.56 11.28

180.14 26.44 29.41 10.02

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

187.89

187.72

138.04

194.80

210.51

185.05

92.82 89.42 1.37 4.27

94.79 90.01 0.61 2.32

89.63 40.60 1.50 6.31

93.19 96.17 1.38 4.07

116.07 85.12 2.54 6.78

89.91 89.96 1.22 3.96

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Note: Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 33

Table 21. Restaurants and Carry-Outs: Indexed spending by race and Hispanic origin, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by race and Hispanic origin of consumer unit reference person, 2003; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) race total consumer units

Asian

$40,817 100

$44,923 110

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

Hispanic origin

black

white and other

Hispanic

non-Hispanic

$28,708 70

$42,360 104

$34,575 85

$41,521 102

128 145

65 73

104 102

101 107

100 99

100 100 100 100

134 175 90 114

84 40 53 111

101 105 107 98

119 86 289 97

98 102 76 100

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

130

52

105

91

101

100 100 100 100

111 139 – 88

80 39 – 248

102 107 117 80

117 80 119 53

98 102 97 106

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

98

80

103

108

99

100 100 100 100

99 103 65 177

73 81 110 109

104 103 100 96

101 107 149 111

100 99 94 99

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

100

73

104

112

98

100 100 100 100

102 101 45 54

97 45 109 148

100 108 101 95

125 95 185 159

97 101 89 93

Average spending of CU, total Average spending of CU, index

Note: Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

34 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 22. Restaurants and Carry-Outs: Total spending by race and Hispanic origin, 2003 (total annual spending on restaurant and carry-out food, by consumer unit race and Hispanic origin groups, 2003; consumer units and dollars in thousands) race total consumer units

Asian

115,356 $4,708,523,919

3,573 $160,509,343

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

211,328,731 75,922,705

Hispanic origin

black

white and other

Hispanic

non-Hispanic

13,743 $394,527,997

98,041 $4,153,041,270

11,727 $405,458,093

103,629 $4,302,756,911

8,383,151 3,404,462

16,462,877 6,591,693

186,250,449 65,820,806

21,755,110 8,281,138

189,543,659 67,579,580

42,568,671 24,236,296 641,379 8,476,359

1,772,172 1,314,757 17,794 299,739

4,283,556 1,150,289 40,267 1,117,581

36,471,252 21,710,199 583,344 7,056,991

5,134,432 2,125,871 188,453 832,500

37,345,819 22,147,590 439,387 7,646,784

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

85,076,204

3,438,441

5,243,504

76,279,820

7,867,644

77,293,762

24,908,821 59,687,502 152,270 326,457

859,985 2,569,523 – 8,897

2,386,747 2,760,419 – 96,338

21,649,414 54,255,889 151,964 222,553

2,968,690 4,862,835 18,411 17,708

21,892,663 54,957,568 132,645 310,887

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28,656,738

869,525

2,730,459

25,050,456

3,137,676

25,493,770

20,794,073 3,075,391 3,614,103 1,172,017

634,708 98,293 72,246 64,278

1,807,479 296,574 474,271 152,272

18,345,432 2,679,461 3,070,644 953,939

2,125,753 333,633 546,009 132,281

18,667,728 2,739,951 3,047,729 1,038,363

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

21,674,239

670,724

1,897,084

19,098,387

2,468,651

19,176,546

10,707,344 10,315,134 158,038 492,570

338,685 321,606 2,180 8,289

1,231,785 557,966 20,615 86,718

9,136,441 9,428,603 135,297 399,027

1,361,153 998,202 29,787 79,509

9,317,283 9,322,465 126,427 410,371

Number of consumer units Total spending of all consumer units

Note: Numbers may not add to total because of rounding. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 35

Table 23. Restaurants and Carry-Outs: Market shares by race and Hispanic origin, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer unit race and Hispanic origin groups, 2003) race total consumer units

Asian

Share of total consumer units Share of total before-tax income Share of total spending

100.0% 100.0 100.0

3.1% 3.7 3.4

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

4.0 4.5

100.0 100.0 100.0 100.0

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Hispanic origin

black 11.9% 8.0 8.4

white and other

Hispanic

non-Hispanic

85.0% 88.2 88.2

10.2% 7.4 8.6

89.8% 92.8 91.4

7.8 8.7

88.1 86.7

10.3 10.9

89.7 89.0

4.2 5.4 2.8 3.5

10.1 4.7 6.3 13.2

85.7 89.6 91.0 83.3

12.1 8.8 29.4 9.8

87.7 91.4 68.5 90.2

100.0

4.0

6.2

89.7

9.2

90.9

100.0 100.0 100.0 100.0

3.5 4.3 – 2.7

9.6 4.6 – 29.5

86.9 90.9 99.8 68.2

11.9 8.1 12.1 5.4

87.9 92.1 87.1 95.2

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

3.0

9.5

87.4

10.9

89.0

100.0 100.0 100.0 100.0

3.1 3.2 2.0 5.5

8.7 9.6 13.1 13.0

88.2 87.1 85.0 81.4

10.2 10.8 15.1 11.3

89.8 89.1 84.3 88.6

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

3.1

8.8

88.1

11.4

88.5

100.0 100.0 100.0 100.0

3.2 3.1 1.4 1.7

11.5 5.4 13.0 17.6

85.3 91.4 85.6 81.0

12.7 9.7 18.8 16.1

87.0 90.4 80.0 83.3

Note: Numbers may not add to total because of rounding. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2002 Consumer Expenditure Survey

36 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 24. Restaurants and Carry-Outs: Average spending by region, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by region in which consumer unit lives, 2003) total consumer units 115,356 2.5 $51,128.00 40,817.33

Northeast 22,182 2.4 $56,513.00 42,162.29

Midwest 26,438 2.5 $52,445.00 40,280.39

South 41,325 2.5 $46,729.00 37,624.55

West 25,412 2.6 $52,506.00 45,380.67

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,831.97 658.16

1,963.62 654.59

1,806.23 620.45

1,671.43 642.51

2,000.85 726.73

369.02 210.10 5.56 73.48

363.82 210.93 5.03 74.81

341.25 187.45 5.92 85.83

357.69 200.84 5.86 78.12

421.48 248.45 5.17 51.64

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

737.51

879.32

727.94

634.16

788.78

215.93 517.42 1.32 2.83

208.67 668.14 0.76 1.75

224.82 496.53 0.93 5.66

192.53 436.15 2.46 3.01

250.13 537.82 0.39 0.45

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

248.42

253.24

260.08

220.50

276.28

180.26 26.66 31.33 10.16

193.32 21.05 25.45 13.43

182.04 29.26 36.77 12.01

153.17 25.11 33.19 9.03

210.22 31.27 27.64 7.15

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

187.89

176.47

197.77

174.26

209.05

92.82 89.42 1.37 4.27

83.47 88.78 0.83 3.39

100.80 91.77 1.25 3.95

94.85 72.42 1.43 5.55

89.22 114.61 1.87 3.35

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 37

Table 25. Restaurants and Carry-Outs: Indexed spending by region, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by region in which consumer unit lives, 2003; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total consumer units $40,817 100

Northeast $42,162 103

Midwest $40,280 99

South $37,625 92

West $45,381 111

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

107 99

99 94

91 98

109 110

100 100 100 100

99 100 90 102

92 89 106 117

97 96 105 106

114 118 93 70

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

119

99

86

107

100 100 100 100

97 129 58 62

104 96 70 200

89 84 186 106

116 104 30 16

100

102

105

89

111

100 100 100 100

107 79 81 132

101 110 117 118

85 94 106 89

117 117 88 70

100

94

105

93

111

100 100 100 100

90 99 61 79

109 103 91 93

102 81 104 130

96 128 136 78

Average spending of CU, total Average spending of CU, index

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

38 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 26. Restaurants and Carry-Outs: Total spending by region, 2003 (total annual spending on restaurant and carry-out food, by region in which consumer unit lives, 2003; consumer units and dollars in thousands) total consumer units 115,356 $4,708,523,919

Northeast 22,182 $935,243,917

Midwest 26,438 $1,064,932,951

South 41,325 $1,554,834,529

West 25,412 $1,153,213,586

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

211,328,731 75,922,705

43,557,019 14,520,115

47,753,109 16,403,457

69,071,845 26,551,726

50,845,600 18,467,663

42,568,671 24,236,296 641,379 8,476,359

8,070,255 4,678,849 111,575 1,659,435

9,021,968 4,955,803 156,513 2,269,174

14,781,539 8,299,713 242,165 3,228,309

10,710,650 6,313,611 131,380 1,312,276

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

85,076,204

19,505,076

19,245,278

26,206,662

20,044,477

24,908,821 59,687,502 152,270 326,457

4,628,718 14,820,681 16,858 38,819

5,943,791 13,127,260 24,587 149,639

7,956,302 18,023,899 101,660 124,388

6,356,304 13,667,082 9,911 11,435

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28,656,738

5,617,370

6,875,995

9,112,163

7,020,827

20,794,073 3,075,391 3,614,103 1,172,017

4,288,224 466,931 564,532 297,904

4,812,774 773,576 972,125 317,520

6,329,750 1,037,671 1,371,577 373,165

5,342,111 794,633 702,388 181,696

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

21,674,239

3,914,458

5,228,643

7,201,295

5,312,379

10,707,344 10,315,134 158,038 492,570

1,851,532 1,969,318 18,411 75,197

2,664,950 2,426,215 33,048 104,430

3,919,676 2,992,757 59,095 229,354

2,267,259 2,912,469 47,520 85,130

Number of consumer units Total spending of all consumer units

Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 39

Table 27. Restaurants and Carry-Outs: Market shares by region, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer units by region, 2003)

Share of total consumer units Share of total before-tax income Share of total spending

total consumer units 100.0% 100.0 100.0

Northeast 19.2% 21.3 19.9

Midwest 22.9% 23.5 22.6

South 35.8% 32.7 33.0

West 22.0% 22.6 24.5

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

20.6 19.1

22.6 21.6

32.7 35.0

24.1 24.3

100.0 100.0 100.0 100.0

19.0 19.3 17.4 19.6

21.2 20.4 24.4 26.8

34.7 34.2 37.8 38.1

25.2 26.1 20.5 15.5

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

22.9

22.6

30.8

23.6

100.0 100.0 100.0 100.0

18.6 24.8 11.1 11.9

23.9 22.0 16.1 45.8

31.9 30.2 66.8 38.1

25.5 22.9 6.5 3.5

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

19.6

24.0

31.8

24.5

100.0 100.0 100.0 100.0

20.6 15.2 15.6 25.4

23.1 25.2 26.9 27.1

30.4 33.7 38.0 31.8

25.7 25.8 19.4 15.5

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

18.1

24.1

33.2

24.5

100.0 100.0 100.0 100.0

17.3 19.1 11.6 15.3

24.9 23.5 20.9 21.2

36.6 29.0 37.4 46.6

21.2 28.2 30.1 17.3

Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

40 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 28. Restaurants and Carry-Outs: Average spending by education, 2003 (average annual spending of consumer units (CU) on restaurant and carry-out food, by education of consumer unit reference person, 2003) college graduate total consumer units

less than high school graduate

high school graduate

some college

associate’s degree

115,356 2.5 $51,128.00 40,817.33

17,721 2.6 $25,028.00 23,901.14

31,552 2.5 $40,113.00 33,955.56

24,514 2.3 $45,113.00 37,912.41

10,981 2.6 $54,087.00 44,547.12

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,831.97 658.16

1,036.65 400.89

1,455.84 538.89

1,877.83 698.72

369.02 210.10 5.56 73.48

252.32 112.42 5.22 30.93

311.64 156.31 6.68 64.26

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

737.51

349.03

215.93 517.42 1.32 2.83

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total

total

bachelor’s degree

master’s, professional, doctorate

30,589 2.5 $81,842.00 58,480.00

19,557 2.5 $74,921.00 54,725.85

11,032 2.4 $93,948.00 65,202.73

2,075.36 743.74

2,496.77 849.99

2,385.04 826.91

2,710.48 894.11

415.03 189.15 6.11 88.43

417.93 212.42 9.92 103.48

436.30 327.30 2.82 83.56

442.12 295.64 2.83 86.32

425.19 387.84 2.81 78.28

547.17

715.21

825.18

1,111.03

1,019.58

1,285.92

144.64 200.46 1.28 2.64

188.18 356.56 1.23 1.20

228.65 475.93 3.22 7.40

258.64 565.15 – 1.39

256.73 852.12 0.45 1.73

266.44 750.73 0.50 1.91

238.14 1,046.03 0.36 1.39

248.42

149.50

209.16

266.91

296.21

308.71

307.47

311.08

180.26 26.66 31.33 10.16

100.74 18.16 24.51 6.09

146.23 23.63 30.72 8.59

195.96 26.09 34.73 10.13

214.58 26.30 42.02 13.31

231.94 34.45 29.50 12.82

232.78 31.57 30.56 12.57

230.34 39.96 27.47 13.30

187.89

137.23

160.62

196.98

210.23

227.05

231.06

219.36

92.82 89.42 1.37 4.27

70.42 62.63 1.28 2.90

86.38 68.65 2.02 3.56

101.08 88.55 1.72 5.63

107.38 95.51 0.52 6.81

99.87 122.53 0.75 3.90

108.15 118.67 0.90 3.34

84.01 129.89 0.48 4.97

Note: (–) means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 41

Table 29. Restaurants and Carry-Outs: Indexed spending by education, 2003 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by education of consumer unit reference person, 2003; index deﬁnition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) college graduate total consumer units

less than high school graduate

high school graduate

some college

associate’s degree

$40,817 100

$23,901 59

$33,956 83

$37,912 93

$44,547 109

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100

57 61

79 82

103 106

100 100 100 100

68 54 94 42

84 74 120 87

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100

47

100 100 100 100

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

Average spending of CU, total Average spending of CU, index

total

bachelor’s degree

master’s, professional, doctorate

$58,480 143

$54,726 134

$65,203 160

113 113

136 129

130 126

148 136

112 90 110 120

113 101 178 141

118 156 51 114

120 141 51 117

115 185 51 107

74

97

112

151

138

174

67 39 97 93

87 69 93 42

106 92 244 261

120 109 – 49

119 165 34 61

123 145 38 67

110 202 27 49

100

60

84

107

119

124

124

125

100 100 100 100

56 68 78 60

81 89 98 85

109 98 111 100

119 99 134 131

129 129 94 126

129 118 98 124

128 150 88 131

100

73

85

105

112

121

123

117

100 100 100 100

76 70 93 68

93 77 147 83

109 99 126 132

116 107 38 159

108 137 55 91

117 133 66 78

91 145 35 116

Note: (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

42 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 30. Restaurants and Carry-Outs: Total spending by education, 2003 (total annual spending on restaurant and carry-out food, by education of consumer unit reference person, 2003; consumer units and dollars in thousands) college graduate

Number of consumer units Total spending of all Cus

total consumer units 115,356 $4,708,523,919

RESTAURANTS AND CARRY-OUTS 211,328,731 Lunch 75,922,705 At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) 42,568,671 At full-service restaurants 24,236,296 At vending machines, mobile vendors 641,379 At employer and school cafeterias 8,476,359

less than high school high school graduate graduate 17,721 31,552 $423,552,102 $1,071,365,829

some college 24,514 $929,384,819

associate’s bachelor’s degree total degree 10,981 30,589 19,557 $489,171,925 $1,788,844,720 $1,070,273,448

master’s, professional, doctorate 11,032 $719,316,517

18,370,475 7,104,172

45,934,664 17,003,057

46,033,125 17,128,422

22,789,528 8,167,009

76,373,698 26,000,344

46,644,227 16,171,879

29,902,015 9,863,822

4,471,363 1,992,195 92,504 548,111

9,832,865 4,931,893 210,767 2,027,532

10,174,045 4,636,823 149,781 2,167,773

4,589,289 2,332,584 108,932 1,136,314

13,345,981 10,011,780 86,261 2,556,017

8,646,541 5,781,831 55,346 1,688,160

4,690,696 4,278,651 31,000 863,585

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

85,076,204

6,185,161

17,264,308

17,532,658

9,061,302

33,985,297

19,939,926

14,186,269

24,908,821 59,687,502 152,270 326,457

2,563,165 3,552,352 22,683 46,783

5,937,455 11,250,181 38,809 37,862

5,605,126 11,666,948 78,935 181,404

2,840,126 6,205,912 – 15,264

7,853,114 26,065,499 13,765 52,919

5,210,767 14,682,027 9,779 37,354

2,627,160 11,539,803 3,972 15,334

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

28,656,738

2,649,290

6,599,416

6,543,032

3,252,682

9,443,130

6,013,191

3,431,835

20,794,073 3,075,391 3,614,103 1,172,017

1,785,214 321,813 434,342 107,921

4,613,849 745,574 969,277 271,032

4,803,763 639,570 851,371 248,327

2,356,303 288,800 461,422 146,157

7,094,813 1,053,791 902,376 392,151

4,552,478 617,414 597,662 245,831

2,541,111 440,839 303,049 146,726

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

21,674,239

2,431,853

5,067,882

4,828,768

2,308,536

6,945,232

4,518,840

2,419,980

10,707,344 10,315,134 158,038 492,570

1,247,913 1,109,866 22,683 51,391

2,725,462 2,166,045 63,735 112,325

2,477,875 2,170,715 42,164 138,014

1,179,140 1,048,795 5,710 74,781

3,054,923 3,748,070 22,942 119,297

2,115,090 2,320,829 17,601 65,320

926,798 1,432,946 5,295 54,829

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 43

Table 31. Restaurants and Carry-Outs: Market shares by education, 2003 (percentage of total annual spending on restaurant and carry-out food accounted for by education of consumer unit reference person, 2003) college graduate total consumer units Share of total consumer units Share of total before-tax income Share of total spending

100.0% 100.0 100.0

RESTAURANTS AND CARRY-OUTS Lunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0

less than high school graduate

some college

associate’s degree

total

bachelor’s degree

master’s, professional, doctorate

27.4% 21.5 22.8

21.3% 18.8 19.7

9.5% 10.1 10.4

26.5% 42.4 38.0

17.0% 24.8 22.7

9.6% 17.6 15.3

8.7 9.4

21.7 22.4

21.8 22.6

10.8 10.8

36.1 34.2

22.1 21.3

14.1 13.0

100.0 100.0 100.0 100.0

10.5 8.2 14.4 6.5

23.1 20.3 32.9 23.9

23.9 19.1 23.4 25.6

10.8 9.6 17.0 13.4

31.4 41.3 13.4 30.2

20.3 23.9 8.6 19.9

11.0 17.7 4.8 10.2

Dinner At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

7.3

20.3

20.6

10.7

39.9

23.4

16.7

100.0 100.0 100.0 100.0

10.3 6.0 14.9 14.3

23.8 18.8 25.5 11.6

22.5 19.5 51.8 55.6

11.4 10.4 – 4.7

31.5 43.7 9.0 16.2

20.9 24.6 6.4 11.4

10.5 19.3 2.6 4.7

Snacks and nonalcoholic beverages At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0

9.2

23.0

22.8

11.4

33.0

21.0

12.0

100.0 100.0 100.0 100.0

8.6 10.5 12.0 9.2

22.2 24.2 26.8 23.1

23.1 20.8 23.6 21.2

11.3 9.4 12.8 12.5

34.1 34.3 25.0 33.5

21.9 20.1 16.5 21.0

12.2 14.3 8.4 12.5

100.0

11.2

23.4

22.3

10.7

32.0

20.8

11.2

100.0 100.0 100.0 100.0

11.7 10.8 14.4 10.4

25.5 21.0 40.3 22.8

23.1 21.0 26.7 28.0

11.0 10.2 3.6 15.2

28.5 36.3 14.5 24.2

19.8 22.5 11.1 13.3

8.7 13.9 3.4 11.1

Breakfast and brunch At fast food, take-out, delivery, buffets, and cafeterias (except employer and school) At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

15.4% 7.5 9.0

high school graduate

Note: Numbers may not add to total because of rounding. (–) means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

44 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

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Breakfast at Fast-Food Restaurants Best customers:

Householders aged 25 to 54 Married couples with school-aged or older children Single parents Hispanics

Customer trends:

Spending in this category may slow as the large baby-boom generation becomes empty-nesters with more free time.

The busiest people are the biggest spenders on breakfast at fast-food restaurants—workers and parents. Householders of prime working age, 25 to 54, spend 18 to 25 percent more than average on this item and account for 71 percent of the market. Married couples with school-aged or older children at home spend 28 to 43 percent more than average on breakfast at fast-food restaurants as they try to ﬁt meals into their busy schedules. Single parents spend 29 percent more than average on this item. Hispanics spend 25 percent more than average on breakfast at fast-food restaurants. Spending on fast-food breakfasts climbed 13 percent between 2000 and 2003, after adjusting for inﬂation. The growing popularity of fast-food breakfasts as a substitute for home cooking is one factor behind the increase. As the large baby-boom generation becomes empty-nesters with more free time, breakfast spending may shift from fast-food to full-service.

Breakfast at fast-food restaurants, including take-outs, deliveries, concession stands, buffets, and cafeterias (except employer and school)

Table 32.

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

46 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$10,707,343,920.00 92.82 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$92.82 88.14 113.99 116.48 109.90 65.54 59.63 43.88

100 95 123 125 118 71 64 47

BIGGEST CUSTOMERS (market share)

100.0% 7.1 21.0 26.6 23.7 10.1 6.4 4.7

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

$99.14 62.14 91.14 116.55 117.86 135.79 124.05 138.16

100 63 92 118 119 137 125 139

100.0% 17.4 22.6 10.7 17.0 7.2 8.9 16.5

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

92.82 103.85 79.03 121.97 96.91 132.51 118.91 120.13 63.68

100 112 85 131 104 143 128 129 69

100.0 56.7 18.5 32.6 5.0 18.6 8.9 7.9 20.2

92.82 94.79 89.63 93.19

100 102 97 100

100.0 3.2 11.5 85.3

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

92.82 116.07 89.91

100 125 97

100.0 12.7 87.0

REGION Average household Northeast Midwest South West

92.82 83.47 100.80 94.85 89.22

100 90 109 102 96

100.0 17.3 24.9 36.6 21.2

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelot, professional, doctoral degree

92.82 70.42 86.38 101.08 107.38 99.87 84.01

100 76 93 109 116 108 91

100.0 11.7 25.5 23.1 11.0 28.5 8.7

RACE Average household Asian Black White and other

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 47

Breakfast at Full-Service Restaurants Best customers:

Married couples without children

Customer trends:

Spending in this category will rise as baby boomers become empty-nesters with more free time.

The biggest spenders on breakfast at full-service restaurants are in some ways the opposite of those who spend the most on fast-food breakfasts. The big spenders are people with free time—older married couples enjoying a leisurely meal. Married couples without children at home (most of them empty-nesters) spend 46 percent more than average on breakfast at full-service restaurants. Spending on full-service breakfasts rose by 5 percent between 2000 and 2003, after adjusting for inﬂation. This increase was less than that for fast-food breakfasts. As baby boomers become empty-nesters with more free time, spending on full-service restaurant breakfasts may grow faster than spending on fast-food breakfasts.

Table 33.

Breakfast at full-service restaurants

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

48 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$10,315,133,520.00 89.42 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$89.42 45.21 79.89 93.74 101.22 91.95 105.44 87.45

100 51 89 105 113 103 118 98

BIGGEST CUSTOMERS (market share)

100.0% 3.8 15.3 22.2 22.7 14.8 11.8 9.7

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

BIGGEST CUSTOMERS (market share)

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

$95.93 47.48 76.24 85.35 132.26 109.45 151.52 183.26

100 49 79 89 138 114 158 191

100.0% 13.8 19.5 8.1 19.7 6.0 11.2 22.6

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

89.42 115.09 130.89 104.81 88.07 108.31 109.98 49.90 60.05

100 129 146 117 98 121 123 56 67

100.0 65.2 31.9 29.0 4.7 15.8 8.6 3.4 19.8

RACE Average household Asian Black White and other

89.42 90.01 40.60 96.17

100 101 45 108

100.0 3.1 5.4 91.4

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

89.42 85.12 89.96

100 95 101

100.0 9.7 90.4

REGION Average household Northeast Midwest South West

89.42 88.78 91.77 72.42 114.61

100 99 103 81 128

100.0 19.1 23.5 29.0 28.2

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

89.42 62.63 68.65 88.55 95.51 122.53 118.67 129.89

100 70 77 99 107 137 133 145

100.0 10.8 21.0 21.0 10.2 36.3 22.5 13.9

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 49

Dinner at Fast-Food Restaurants Best customers:

Householders aged 25 to 54 Married couples with children

Customer trends:

Spending in this category may decline as baby boomers become empty-nesters and no longer need to cater to children’s meal preferences.

Families with children are the biggest spenders on dinners at fast-food restaurants. Householders aged 25 to 54 spend 15 to 35 percent more than average on this item, accounting for 73 percent of the market. Married couples with children at home spend 58 percent more than average on dinner at fast-food restaurants as they try to ﬁt meals into their busy schedules. Average household spending on fast-food dinners fell by 2 percent between 2000 and 2003, after adjusting for inﬂation. Behind the decline is the entry of the baby-boom generation into the empty-nest lifestage. Once children’s meal preferences no longer direct the restaurant choices of a growing number of boomers, average household spending on fast-food restaurant dinners will continue to decline in the years ahead.

Dinner at fast food restaurants, including take-outs, deliveries, concession stands, buffets, and cafeterias (except employer and school)

Table 34.

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

50 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$24,908,821,080.00 215.93 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$215.93 175.48 264.57 291.05 248.48 179.50 120.37 77.85

100 81 123 135 115 83 56 36

BIGGEST CUSTOMERS (market share)

100.0% 6.0 21.0 28.5 23.1 11.9 5.6 3.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$233.57 129.41 187.07 237.34 285.96 332.96 367.28 400.11

100 55 80 102 122 143 157 171

100.0% 15.4 19.7 9.3 17.5 7.5 11.2 20.3

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

215.93 274.46 186.25 341.19 303.57 359.73 331.03 238.96 106.01

100 127 86 158 141 167 153 111 49

100.0 64.4 18.8 39.2 6.7 21.7 10.7 6.7 14.4

RACE Average household Asian Black White and other

215.93 240.69 173.67 220.82

100 111 80 102

100.0 3.5 9.6 86.9

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

215.93 253.15 211.26

100 117 98

100.0 11.9 87.9

REGION Average household Northeast Midwest South West

215.93 208.67 224.82 192.53 250.13

100 97 104 89 116

100.0 18.6 23.9 31.9 25.5

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

215.93 144.64 188.18 228.65 258.64 256.73 266.44 238.14

100 67 87 106 120 119 123 110

100.0 10.3 23.8 22.5 11.4 31.5 20.9 10.5

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 51

Dinner at Full-Service Restaurants Best customers:

Householders aged 45 to 64 Married couples without children Married couples with school-aged or older children Asians

Customer trends:

Spending in this category will rise as baby boomers become empty-nesters with more free time.

The biggest spenders on dinners at full-service restaurants are middle-aged married couples enjoying a leisurely meal. Householders aged 45 to 64 spend 18 to 20 percent more than average on this item. Married couples without children at home (most of them empty-nesters) and those with school-aged or older children at home spend 23 to 46 percent more than average on dinner at full-service restaurants. Asians spend 39 percent more. Spending on full-service dinners fell by 0.7 percent between 2000 and 2003, after adjusting for inﬂation. Behind the decline was the recession of 2001 and the slow economic recovery, which limited the spending of households on restaurant meals. As more boomers become empty-nesters in the years ahead, spending on dinners at full-service restaurants should increase.

Table 35.

Dinner at full-service restaurants

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

52 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$59,687,501,520.00 517.42 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$517.42 307.00 516.44 554.11 623.28 609.65 488.56 274.93

100 59 100 107 120 118 94 53

BIGGEST CUSTOMERS (market share)

100.0% 4.4 17.1 22.7 24.2 16.9 9.4 5.3

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$535.73 213.04 315.01 467.78 585.44 708.04 920.45 1,506.10

100 40 59 87 109 132 172 281

100.0% 11.1 14.5 8.0 15.6 6.9 12.2 33.3

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

517.42 675.00 754.65 625.08 463.80 636.10 721.22 243.71 330.14

100 130 146 121 90 123 139 47 64

100.0 66.1 31.8 29.9 4.3 16.0 9.7 2.9 18.8

RACE Average household Asian Black White and other

517.42 719.15 200.86 553.40

100 139 39 107

100.0 4.3 4.6 90.9

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

517.42 414.67 530.33

100 80 102

100.0 8.1 92.1

REGION Average household Northeast Midwest South West

517.42 668.14 496.53 436.15 537.82

100 129 96 84 104

100.0 24.8 22.0 30.2 22.9

517.42 200.46 356.56 475.93 565.15 852.12 750.73 1,046.03

100 39 69 92 109 165 145 202

100.0 6.0 18.8 19.5 10.4 43.7 24.6 19.3

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 53

Lunch at Employer and School Cafeterias Best customers:

Householders aged 35 to 44 Married couples with school-aged or older children Single parents

Customer trends:

Spending in this category may decline as fewer employers offer cafeteria meals for their employees in an attempt to cut costs.

Not surprisingly, workers are the biggest spenders on lunch at employer and school cafeterias. Householders aged 35 to 44, most of them in the workforce, spend more than twice the average on this item. Married couples with school-aged children, many of them dual-income couples, spend more than three times the average on this item. Couples with adult children at home spend 59 percent more than average on employer and school cafeteria lunches, while single parents spend 50 percent more. Average household spending on employer and school cafeteria lunches fell 14 percent between 2000 and 2003, after adjusting for inﬂation. This category may see a continuing decline in spending in the years ahead as fewer employers offer cafeteria meals in an attempt to cut costs.

Table 36.

Lunch at employer and school cafeterias

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

54 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$8,476,358,880.00 73.48 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$73.48 37.77 71.36 154.51 87.35 42.12 15.38 4.95

100 51 97 210 119 57 21 7

BIGGEST CUSTOMERS (market share)

100.0% 3.8 16.6 44.5 23.8 8.2 2.1 0.7

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

$79.54 22.75 52.68 92.36 116.61 125.79 169.58 145.74

100 29 66 116 147 158 213 183

100.0% 8.0 16.3 10.6 20.9 8.3 15.1 21.7

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

73.48 105.63 30.55 166.76 41.39 236.63 116.51 109.97 21.91

100 144 42 227 56 322 159 150 30

100.0 72.8 9.1 56.2 2.7 42.0 11.1 9.1 8.8

RACE Average household Asian Black White and other

73.48 83.89 81.32 71.98

100 114 111 98

100.0 3.5 13.2 83.3

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

73.48 70.99 73.79

100 97 100

100.0 9.8 90.2

REGION Average household Northeast Midwest South West

73.48 74.81 85.83 78.12 51.64

100 102 117 106 70

100.0 19.6 26.8 38.1 15.5

73.48 30.93 64.26 88.43 103.48 83.56 86.32 78.28

100 42 87 120 141 114 117 107

100.0 6.5 23.9 25.6 13.4 30.2 19.9 10.2

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 55

Lunch at Fast-Food Restaurants Best customers:

Householders aged 25 to 54 Married couples with children Asians and Hispanics

Customer trends:

Once boomers begin to retire en masse, spending on this category may decline.

Workers and parents are the best customers of fast-food lunches. Householders of prime working age, 25 to 54, spend 17 to 30 percent more than average on this item and account for 73 percent of the market. Married couples with children at home spend 42 percent more than average on lunches at fastfood restaurants as they try to ﬁt meals into their busy schedules. Asians spend 34 percent more than average on this item, while Hispanics spend 19 percent more. Average household spending on fast-food lunches fell 6 percent between 2000 and 2003, after adjusting for inﬂation. Behind the decline was the recession of 2001 and the loss of discretionary income. Spending on fast-food lunches should remain relatively stable while the majority of boomers are in the labor force. Once boomers begin to retire en masse, however, spending on this category may decline.

Lunch at fast-food restaurants, including take-outs, deliveries, concession stands, buffets, and cafeterias (except employer and school) Table 37.

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

56 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$42,568,671,120.00 369.02 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$369.02 347.37 480.77 469.27 431.68 277.14 226.75 109.86

100 94 130 127 117 75 61 30

BIGGEST CUSTOMERS (market share)

100.0% 7.0 22.3 26.9 23.5 10.8 6.1 2.9

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$395.14 226.17 331.71 425.06 450.43 621.94 556.25 658.36

100 57 84 108 114 157 141 167

100.0% 15.9 20.6 9.8 16.3 8.3 10.0 19.7

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

369.02 439.18 316.58 525.48 505.02 532.82 525.57 379.05 218.23

100 119 86 142 137 144 142 103 59

100.0 60.3 18.7 35.3 6.5 18.8 9.9 6.2 17.4

RACE Average household Asian Black White and other

369.02 495.99 311.69 372.00

100 134 84 101

100.0 4.2 10.1 85.7

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

369.02 437.83 360.38

100 119 98

100.0 12.1 87.7

REGION Average household Northeast Midwest South West

369.02 363.82 341.25 357.69 421.48

100 99 92 97 114

100.0 19.0 21.2 34.7 25.2

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

369.02 252.32 311.64 415.03 417.93 436.30 442.12 425.19

100 68 84 112 113 118 120 115

100.0 10.5 23.1 23.9 10.8 31.4 20.3 11.0

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 57

Lunch at Full-Service Restaurants Best customers:

Householders aged 45 to 54 Married couples without children Married couples with adult children Asians

Customer trends:

Spending in this category will rise as baby boomers become empty-nesters with more free time.

The biggest spenders on lunch at full-service restaurants are the same customers who spend big on full-service dinners—middle-aged married couples enjoying a leisurely meal. Householders aged 45 to 54 spend 21 percent more than average on this item. Married couples without children at home (many of them empty-nesters), and those with adult children at home (nearly empty-nesters) spend 40 percent more than average on lunch at full-service restaurants. Average household spending on full-service lunches fell 6 percent between 2000 and 2003, after adjusting for inﬂation. This drop is about the same as the decline in spending on fast-food lunches and is a consequence of the recession of 2001 and the squeeze on discretionary income. As boomers retire and gain more free time, expect average household spending on full-service restaurants to grow.

Table 38.

Lunch at full-service restaurants

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

58 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$24,236,295,600.00 210.10 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$210.10 117.93 203.65 229.30 254.33 226.03 198.55 147.94

100 56 97 109 121 108 95 70

BIGGEST CUSTOMERS (market share)

100.0% 4.2 16.6 23.1 24.3 15.5 9.4 7.0

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$225.04 97.49 157.94 207.46 286.03 275.29 337.76 535.52

100 43 70 92 127 122 150 238

100.0% 12.1 17.3 8.4 18.1 6.4 10.6 28.2

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

210.10 260.00 294.79 242.57 179.93 240.30 293.27 126.52 149.40

100 124 140 115 86 114 140 60 71

100.0 62.7 30.6 28.6 4.1 14.9 9.7 3.7 20.9

RACE Average household Asian Black White and other

210.10 367.97 83.70 221.44

100 175 40 105

100.0 5.4 4.7 89.6

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

210.10 181.28 213.72

100 86 102

100.0 8.8 91.4

REGION Average household Northeast Midwest South West

210.10 210.93 187.45 200.84 248.45

100 100 89 96 118

100.0 19.3 20.4 34.2 26.1

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

210.10 112.42 156.31 189.15 212.42 327.30 295.64 387.84

100 54 74 90 101 156 141 185

100.0 8.2 20.3 19.1 9.6 41.3 23.9 17.7

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 59

Snacks at Employer and School Cafeterias Best customers:

Householders aged 25 to 54 Married couples with children Asians and Hispanics

Customer trends:

Spending in this category may decline as fewer employers provide cafeterias in an attempt to cut costs.

Not surprisingly, workers are the biggest spenders on snacks at employer and school cafeterias. Householders aged 25 to 54, most of them in the workforce, spend 17 to 30 percent more than average on this item and account for 73 percent of the market. Married couples with children, many of them dual-income couples, spend 42 percent more than average on this item. Asians spend 34 percent more and Hispanics spend 19 percent more than average on snacks at employer and school cafeterias. Average household spending on restaurant snacks fell 9 percent between 2000 and 2003, after adjusting for inﬂation. Behind the decline was the loss of discretionary income following the recession of 2001. In the years ahead, spending on snacks in this category may decline as employers attempt to cut costs by eliminating cafeterias.

Table 39.

Snacks at employer and school cafeterias

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

60 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$42,568,671,120.00 369.02 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$369.02 347.37 480.77 469.27 431.68 277.14 226.75 109.86

100 94 130 127 117 75 61 30

BIGGEST CUSTOMERS (market share)

100.0% 7.0 22.3 26.9 23.5 10.8 6.1 2.9

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$395.14 226.17 331.71 425.06 450.43 621.94 556.25 658.36

100 57 84 108 114 157 141 167

100.0% 15.9 20.6 9.8 16.3 8.3 10.0 19.7

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

369.02 439.18 316.58 525.48 505.02 532.82 525.57 379.05 218.23

100 119 86 142 137 144 142 103 59

100.0 60.3 18.7 35.3 6.5 18.8 9.9 6.2 17.4

RACE Average household Asian Black White and other

369.02 495.99 311.69 372.00

100 134 84 101

100.0 4.2 10.1 85.7

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

369.02 437.83 360.38

100 119 98

100.0 12.1 87.7

REGION Average household Northeast Midwest South West

369.02 363.82 341.25 357.69 421.48

100 99 92 97 114

100.0 19.0 21.2 34.7 25.2

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

369.02 252.32 311.64 415.03 417.93 436.30 442.12 425.19

100 68 84 112 113 118 120 115

100.0 10.5 23.1 23.9 10.8 31.4 20.3 11.0

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 61

Snacks at Fast-Food Restaurants Best customers:

Householders aged 25 to 54 Married couples with children

Customer trends:

Spending should slow on this item as the small generation X becomes the parents of children and teens.

Married couples with children are the best customers of snacks from fast-food restaurants. Householders aged 25 to 54, many with children at home, spend 19 to 23 percent more than the average household on fast-food restaurant snacks. Married couples with children at home spend 42 percent more than average on this item. Average household spending on snacks from fast-food restaurants increased 6 percent between 2000 and 2003, after adjusting for inﬂation. Behind the increase is the substitution of snacks for meals as families juggle busy schedules. Growth in spending on snacks at fast-food restaurants is likely to slow as the small generation X becomes the parents of children and teens and as the large baby-boom generation enters the empty-nest lifestage.

Table 40. Snacks at fast-food restaurants, including take-outs, deliveries, concession stands, buffets, and cafeterias (except employer and school) Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

62 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$20,794,072,560.00 180.26 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$180.26 189.26 214.00 222.59 218.71 145.65 116.33 52.41

100 105 119 123 121 81 65 29

BIGGEST CUSTOMERS (market share)

100.0% 7.8 20.3 26.1 24.3 11.6 6.4 2.9

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$198.42 115.74 153.48 230.17 240.61 266.53 308.81 324.46

100 58 77 116 121 134 156 164

100.0% 16.2 19.0 10.6 17.3 7.1 11.0 19.4

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

180.26 211.98 158.65 255.55 230.46 259.18 266.61 196.56 117.64

100 118 88 142 128 144 148 109 65

100.0 59.6 19.2 35.1 6.1 18.8 10.3 6.6 19.2

RACE Average household Asian Black White and other

180.26 177.64 131.52 187.12

100 99 73 104

100.0 3.1 8.7 88.2

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

180.26 181.27 180.14

100 101 100

100.0 10.2 89.8

REGION Average household Northeast Midwest South West

180.26 193.32 182.04 153.17 210.22

100 107 101 85 117

100.0 20.6 23.1 30.4 25.7

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

180.26 100.74 146.23 195.96 214.58 231.94 232.78 230.34

100 56 81 109 119 129 129 128

100.0 8.6 22.2 23.1 11.3 34.1 21.9 12.2

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 63

Snacks at Full-Service Restaurants Best customers:

Householders aged 45 to 54 Married couples without children Married couples with adult children

Customer trends:

Spending in this category should continue to rise rapidly as casual sit-down restaurants compete with fast-food establishments for the dollars of snackers.

The biggest spenders on snacks at full-service restaurants are married couples with adult children at home. This household type spends 32 percent more than average on this item in part because their households include teens and young adults—who are known for their big appetites. Householders aged 45 to 54, many of whom have teens and young adults at home, spend 23 percent more than average on this item. Married couples without children at home (most of them empty-nesters) spend 24 percent more than average on full-service restaurant snacks. Average household spending on full-service snacks rose by a substantial 24 percent between 2000 and 2003, after adjusting for inﬂation. Behind the increase is the substitution of snacks for meals as families juggle busy schedules. Growth in spending on snacks at full-service restaurants will continue as casual sit-down restaurants compete with fast-food establishments for the dollars of snackers.

Table 41.

Snacks at full-service restaurants

Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

64 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$3,075,390,960.00 26.66 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$26.66 22.04 27.61 26.57 32.71 24.26 25.38 20.74

100 83 104 100 123 91 95 78

BIGGEST CUSTOMERS (market share)

100.0% 6.2 17.7 21.1 24.6 13.1 9.5 7.7

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$28.59 20.21 24.27 28.62 41.58 27.59 37.55 37.62

100 71 85 100 145 97 131 132

100.0% 19.7 20.9 9.1 20.7 5.1 9.3 15.6

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

26.66 29.49 32.94 27.61 21.96 25.91 35.23 26.55 21.28

100 111 124 104 82 97 132 100 80

100.0 56.0 26.9 25.7 3.9 12.7 9.2 6.0 23.5

RACE Average household Asian Black White and other

26.66 27.51 21.58 27.33

100 103 81 103

100.0 3.2 9.6 87.1

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

26.66 28.45 26.44

100 107 99

100.0 10.8 89.1

REGION Average household Northeast Midwest South West

26.66 21.05 29.26 25.11 31.27

100 79 110 94 117

100.0 15.2 25.2 33.7 25.8

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

26.66 18.16 23.63 26.09 26.30 34.45 31.57 39.96

100 68 89 98 99 129 118 150

100.0 10.5 24.2 20.8 9.4 34.3 20.1 14.3

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 65

Snacks at Vending Machines and Mobile Vendors Best customers:

Householders under age 55 Married couples with children Hispanics

Customer trends:

Spending could decline as restaurants compete for snack dollars.

The biggest spenders on snacks from vending machines and mobile vendors are parents with children. Householders under age 55, most of them parents, spend 24 to 33 percent more than average on this item. Married couples with children spend 59 percent more than average on vending machine snacks. Hispanics, who have larger families than other racial or ethnic groups, spend 49 percent more than average on this item. Average household spending on snacks from vending machines and mobile vendors fell by 24 percent between 2000 and 2003, after adjusting for inﬂation. This decline contrasts with increases in spending on snacks from fast-food and full-service restaurants. Behind the decline is competition from restaurants for snack spending, a trend that is likely to intensify in the years ahead.

Table 42. Snacks at vending machines and mobile vendors Total household spending Average household spends

AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older

66 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$3,614,103,480.00 31.33 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$31.33 41.21 40.22 41.71 38.77 21.64 11.66 2.84

100 132 128 133 124 69 37 9

BIGGEST CUSTOMERS (market share)

100.0% 9.8 22.0 28.2 24.8 9.9 3.7 0.9

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$35.06 21.68 28.92 39.17 47.96 51.52 61.18 38.61

100 62 82 112 137 147 175 110

100.0% 17.2 20.3 10.2 19.5 7.7 12.4 13.0

HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person

31.33 36.92 21.94 49.67 40.41 55.65 44.28 29.57 19.45

100 118 70 159 129 178 141 94 62

100.0 59.7 15.3 39.3 6.1 23.2 9.9 5.7 18.3

RACE Average household Asian Black White and other

31.33 20.22 34.51 31.32

100 65 110 100

100.0 2.0 13.1 85.0

HISPANIC ORIGIN Average household Hispanic Non-Hispanic

31.33 46.56 29.41

100 149 94

100.0 15.1 84.3

REGION Average household Northeast Midwest South West

31.33 25.45 36.77 33.19 27.64

100 81 117 106 88

100.0 15.6 26.9 38.0 19.4

EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree

31.33 24.51 30.72 34.73 42.02 29.50 30.56 27.47

100 78 98 111 134 94 98 88

100.0 12.0 26.8 23.6 12.8 25.0 16.5 8.4

HOUSEHOLD INCOME Average household reporting income Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. Other races include Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and consumer unit reference persons reporting more than one race. Hispanics may be of any race. Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 67

Appendix: Spending by Product and Service, 2003 Ranking (average annual spending of consumer units on products and services, ranked by amount spent, 2003) Mortgage interest

$2,830.50

Social Security

2,715.50

Rent

2,109.74

Federal income taxes

1,843.07

Property taxes

1,343.82

Gasoline and motor oil

1,332.76

Health insurance

1,251.62

New trucks

1,107.55

Electricity

1,027.91

New cars

944.91

Vehicle insurance

905.26

Used cars

816.42

Used trucks

795.03

Residential telephone service and pay phones

619.60

Vehicle maintenance and repairs

618.92

Cash contributions to churches, religious organizations

564.41

Apparel, women’s

528.63

Dinner at full-service restaurants

517.42

Maintenance and repair services, owned homes

516.31

State and local income taxes

501.53

Pensions, deductions for private

481.22

College tuition

467.71

Cable service and community antenna

423.79

Life, endowment, annuity, other personal insurance

397.30

Natural gas

392.01

Retirement accounts, nonpayroll deposits

388.15

Vehicle ﬁnance charges

370.59

Lunch at fast-food restaurants and take-outs

369.02

Drugs, prescription

348.53

Cellular phone service

316.10

Cash gifts to nonhousehold members

301.67

Homeowner’s insurance

287.43

Apparel, men’s

282.18

Apparel, children’s

276.76

Cigarettes

266.78

Personal care services

256.43

Airline fares

252.56

Beef

245.55

Lodging on trips

241.77

Vehicle leasing

237.19

Water and sewerage maintenance

236.30

Dental services

227.24

Dinner at fast-food restaurants and take-outs

215.93

Medicare payments

215.02

Restaurant meals on trips

213.97

Lunch at full-service restaurants

210.10

Recreation expenses on trips

195.71

Finance charges, except mortgage and vehicle

190.88

Day care centers, nurseries, and preschools

188.82

Taxes, except federal, state, and local

187.14

Snacks at fast-food restaurants and take-outs

180.26

68 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Fresh vegetables

$171.96

Fresh fruits

170.88

Pork

170.61

Child support expenditures

166.12

Vacation homes, owned

150.29

Poultry

144.61

Physician’s services

143.63

Cash contributions to charities and other organizations

139.45

Shoes, women’s

138.40

Computers and computer hardware, nonbusiness use

136.77

Carbonated drinks

133.91

Laundry and cleaning supplies

132.28

Decorative items for the home

126.78

Elementary and high school tuition

124.91

Fish and seafood

124.46

Computer information services

123.92

Cosmetics, perfume, and bath products

123.43

Home equity loan, line of credit interest

122.47

Jewelry

120.16

Milk, fresh

112.58

Beer and ale at home

111.17

Legal fees

108.09

Household products, except cleaning supplies and paper products

106.32

Toys, games, hobbies, and tricycles

100.05

Pet food

99.82

Cheese

97.04

Prepared food, excluding frozen

95.13

Social, recreation, civic club membership

95.06

Housekeeping services

93.13

Breakfast at fast-food restaurants and take-outs

92.82

Sofas

92.17

Television sets

91.49

Movie, theater, opera, ballet tickets

90.69

Wine at home

89.93

Breakfast at full-service restaurants

89.42

State and local vehicle registration

88.17

Trash and garbage collection

87.63

Cereals, ready-to-eat and cooked

86.21

Camper, motorized

83.89

Gardening, lawn care service

83.70

Shoes, men’s

83.38

Lawn and garden supplies

81.82

Bedroom furniture, except mattresses and springs

79.44

Fees for recreational lessons

79.36

Potato chips and other snacks

79.27

Maintenance and repair materials, owned homes

78.80

Pet purchase, supplies, and medicines

75.73

Candy and chewing gum

75.31

Cleansing and toilet tissue, paper towels, and napkins

75.23

Veterinarian services

74.18

Lunch at employer and school cafeterias

73.48

Shoes, children’s

72.14

Drugs, nonprescription

70.30

Frozen prepared foods, except meals

69.94

Deductions for government retirement

69.64

Lunch meats (cold cuts)

69.31

Postage

68.94

Motorboats

65.89

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 69

Fees for participant sports

$65.73

Cash support for college students

64.39

Laundry and dry cleaning of apparel, professional

61.18

Cash contributions to educational institutions

60.37

Beer and ale at restaurants, bars

60.33

Babysitting and child care

60.04

Stationery, stationery supplies, giftwrap

59.55

Nonalcoholic beverages and ice, except fruit drinks

58.72

Ice cream and related products

58.09

Fuel oil

57.54

Funeral expenses

57.51

Vegetables, canned and dried

57.40

School lunches

56.87

Hair care products

55.65

Lawn and garden equipment

55.39

Wall units and cabinets

55.13

Books, supplies for college

54.65

Athletic gear, game tables, exercise equipment

54.52

Fruit juice, canned and bottled

53.82

Bedroom linens

53.45

Trailers and other attachable campers

53.32

Housing while attending school

52.90

Eyeglasses and contact lenses

50.97

Kitchen and dining room furniture

49.42

Bread, other than white

49.06

Mass transit fares, intracity

48.94

Catered affairs

48.39

Vitamins, nonprescription

48.02

Books, except book clubs

47.81

Refrigerators and freezers

47.56

Accounting fees

46.44

Cookies

45.06

Mattresses and springs

44.89

Hospital services other than room

43.34

Bottled/tank gas

42.42

Alimony expenditures

42.18

Newspaper subscriptions

41.54

Ground rent

40.58

Plants and fresh ﬂowers, indoor

40.31

Living room chairs

38.76

Whiskey and other alcoholic beverages at restaurants, bars

38.75

Medical services by professionals other than physician

38.54

Sauces and gravies

38.46

Coffee

38.08

Eggs

37.34

Biscuits and rolls

37.24

Cakes and cupcakes

36.71

Laundry and dry cleaning of apparel, coin-operated

36.41

Groceries purchased on trips

36.28

Video cassettes, tapes, and discs

35.92

Rental of video cassettes, tapes, discs, ﬁlms

35.76

Lottery and gambling losses

35.37

Soups, canned and packaged

35.19

Frozen meals

34.85

Occupational expenses

34.69

Eye care services

34.60

Admission to sports events

33.65

Bread, white

33.50

Records, CDs, audio tapes, needles

33.31

70 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Alcoholic beverages on trips

$33.26

Board (including at school)

33.25

Property management, owned home

33.03

Vehicle rental

32.95

Convalescent or nursing home care

32.80

Snacks at vending machines, mobile vendors

31.33

Hunting and ﬁshing equipment

30.49

Cooking stoves, ovens

30.49

Moving, storage, and freight express

30.46

Electric ﬂoor-cleaning equipment

30.24

Deodorants, feminine hygiene, and misc. personal products

30.11

Topicals and dressings

30.10

Floor coverings, wall-to-wall

29.50

Lab tests, X-rays

28.93

Washing machines

28.68

Dairy, except milk, cream, and ice cream (i.e., yogurt)

28.26

Oral hygiene products

28.22

Parking fees

28.12

Ship fares

27.90

Pasta, cornmeal, and other cereal products

27.75

Sweetrolls, coffee cakes, doughnuts

27.65

Vegetables, frozen

26.79

Telephones and accessories

26.78

Baby food

26.76

Snacks at full-service restaurants

26.66

Nuts

26.41

Fats and oils

26.29

Meals as pay

26.28

Salad dressings

26.17

Photographic equipment

26.11

Hospital room

26.06

Alcoholic beverage at home, except beer, whiskey, and wine

24.70

Gifts to nonhousehold members of stocks, bonds, and mutual funds

24.68

Bakery products, frozen and refrigerated

24.56

Pet services

24.52

Crackers

24.52

Power tools

24.38

Window coverings

24.34

VCRs and video disc players

24.26

Outdoor equipment

23.74

Musical instruments and accessories

23.32

Frankfurters

22.74

Film processing

22.27

Floor coverings, nonpermanent

22.26

Taxi fares and limousine service

21.58

Tobacco products, except cigarettes

21.42

School tuition except elementary, high school, college

21.36

Jams, preserves, other sweets

21.20

Fruit juice, fresh

20.77

Salt, spices, and other seasonings

20.77

Tableware, nonelectric kitchenware

20.56

Prepared salads

20.51

Bathroom linens

20.30

Checking accounts, other bank service charges

20.01

Baking needs

19.58

Clothes dryers

19.43

Fruit-ﬂavored drinks, noncarbonated

19.29

Phone cards

18.88

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 71

Wine at restaurants, bars

$18.78

Videogame hardware and software

18.70

Butter

18.08

Computer software and accessories, nonbusiness use

17.98

Tea

17.71

Living room tables

17.51

Sound components and component systems

17.47

Watches

17.12

Sugar

16.89

Maintenance and repair services, rented homes

16.88

Tolls

16.75

Train fares, intercity

16.07

Rice

16.05

Fruit, canned

15.96

Small electric kitchen appliances

15.66

Home security system service fee

15.54

Outdoor furniture

15.35

Nonelectric cookware

15.26

Curtains and draperies

15.24

Shaving products

14.80

Film

14.63

Magazine subscriptions

14.45

Hearing aids

14.40

Photographer fees

14.34

Whiskey at home

14.29

Books, supplies for elementary, high school

14.09

Laundry and cleaning equipment

14.03

Cream

13.95

Lamps and lighting ﬁxtures

13.66

Dishwashers (built-in), garbage disposals, range hoods

13.50

Cemetery lots, vaults, and maintenance fees

13.27

Infants’ equipment

13.08

Automobile service clubs

12.83

Flour mixes, prepared

12.79

Peanut butter

12.64

Ofﬁce furniture for home use

12.61

Appliance repair, including service center

11.75

Olives, pickles, relishes

11.41

Termite/pest control services

11.30

Sewing materials for household items

11.27

Prepared desserts

11.10

Bicycles

11.06

Nondairy cream and imitation milk

11.02

Maintenance and repair materials, rented homes

10.23

Snacks at employer and school cafeterias

10.16

Lamb and organ meats

9.96

Pies, tarts, turnovers

9.72

Newspaper, nonsubscription

9.71

Electric personal care appliances

9.68

Tenant’s insurance

9.67

Margarine

9.61

Closet and storage items

9.57

Camping equipment

9.31

Wood and other fuels

9.10

Bus fares, intercity

8.96

Sewing machines

8.95

Glassware

8.89

Vegetable juices

8.67

Vehicle inspection

8.36

72 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Medical equipment

$8.35

Local transportation on trips

8.33

Infants’ furniture

8.17

Fruit juice, frozen

7.88

Magazines, nonsubscription

7.73

Microwave ovens

7.56

Kitchen and dining room linens

7.37

Flour

7.32

Hand tools

7.22

Driver’s license

7.17

China and other dinnerware

7.04

Boat without motor and boat trailers

6.95

Portable heating and cooling equipment

6.85

Hair accessories

6.75

Cash contributions to political organizations

6.62

Silver serving pieces

6.51

Fruit, dried

6.30

Luggage

6.18

Repairs/rentals of lawn equipment, tools, etc.

6.08

Books purchased through book clubs

5.69

Artiﬁcial sweeteners

5.67

Apparel repair and tailoring

5.62

Lunch at vending machines, mobile vendors

5.56

Sound equipment accessories

5.54

Parking, owned home

5.47

Radios

5.46

Air conditioners, window

5.40

Material for making clothes

5.33

Reupholstering and furniture repair

5.20

Sewing patterns and notions

4.99

Pinball, electronic video games

4.97

Shopping club membership fees

4.92

Winter sports equipment

4.89

Delivery services

4.70

Towing charges

4.67

Water sports equipment

4.48

Compact disc, tape, record, video mail order clubs

4.38

Slipcovers and decorative pillows

4.35

Breakfast at employer and school cafeterias

4.27

Rental of recreational vehicles

4.21

Repair of computer systems for nonbusiness use

4.20

Clocks

4.02

Flatware

3.99

Tape recorders and players

3.93

Playground equipment

3.91

Fruit, frozen

3.66

Laundry and dry cleaning, nonapparel, coin-operated

3.62

Watch and jewelry repair

3.59

Docking and landing fees

3.57

Bread and cracker products

3.57

Management and upkeep services for security, owned home

3.49

Safe deposit box rental

3.48

Deductions for railroad retirement

3.42

Rental of medical equipment

3.28

Water softening service

3.23

Books, supplies for day care, nursery school

3.02

Dinner at employer and school cafeterias

2.83

Rental of furniture

2.70

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 73

Repair of TV, radio, and sound equipment

$2.60

Clothing rental

2.46

Septic tank cleaning

2.35

Credit card memberships

2.34

Fireworks

2.33

Rental and repair of musical instruments

2.29

Rental and repair of miscellaneous sports equipment

2.01

Wigs and hairpieces

1.84

Appliance rental

1.63

Plastic dinnerware

1.56

Termite/pest control products

1.52

Smoking accessories

1.42

Breakfast at vending machines, mobile vendors

1.37

Dinner at vending machines, mobile vendors

1.32

Calculators

1.27

Shoe repair and other shoe services

1.15

Smoke alarms

1.13

Pager service

1.12

Business equipment for home use

1.08

Laundry and dry cleaning, nonapparel, sent out

1.00

Telephone answering devices

0.93

Satellite dishes

0.91

School bus

0.70

Rental of television sets

0.58

Repair and rental of photographic equipment

0.58

Clothing storage

0.48

Rental of VCR, radio, sound equipment

0.29

Source: Calculations by New Strategist based on the 2003 Consumer Expenditure Survey

74 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Glossary age The age of the reference person, also called the householder or head of household. average spending The average amount spent per household. The Bureau of Labor Statistics calculates the average for all households in a segment, not just for those who purchased an item. For items purchased by most households—such as bread—average spending ﬁgures are an accurate account of actual spending. For products and services purchased by few households during a year’s time—such as cars—the average amount spent is much less than what purchasers spend. See the Percent Reporting table (Table 1) for the percentage of consumer units reporting an expenditure and the average amount spent by purchasers. baby boom People born from 1946 through 1964. baby bust People born from 1965 through 1976. Also known as generation X. complete income reporters Respondents who provided values for major sources of income, such as wages and salaries, self-employment income, and Social Security income. Even complete income reporters may not have given a full accounting of all income from all sources. consumer unit Deﬁned as follows: • All members of a household who are related by blood, marriage, adoption, or other legal arrangements. • A person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is ﬁnancially independent. • Two persons or more living together who pool their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: housing, food, and other living expenses. To be considered ﬁnancially independent, at least two of the three major expense categories have to be provided by the respondent. For convenience, called households in the text of this book. consumer unit, composition of The classiﬁcation of interview households by type according to: (1) relationship of other household members to the reference person; (2) age of the children to the reference person; and (3) combination of relationship to the reference person and age of the children. Stepchildren and adopted children are included with the reference person’s own children. education of reference person The number of years of formal education of the reference person based on the highest grade completed. If the respondent was enrolled at the time of interview, the grade being attended is the one recorded. Those not reporting their education are classiﬁed under no school or not reported. expenditure The transaction cost including excise and sales taxes of goods and services acquired during the survey period. The full cost of each purchase is recorded even though full payment may not have been made at the date of purchase. Expenditure estimates include gifts. Excluded

from expenditures are purchases or portions of purchases directly assignable to business purposes and periodic credit or installment payments on goods and services already acquired. generation X People born from 1965 through 1976. Also known as the baby bust. Hispanic origin The self-identiﬁed Hispanic origin of the consumer unit reference person. All consumer units are included in one of two Hispanic origin groups based on the reference person’s Hispanic origin: Hispanic or non-Hispanic. Hispanics may be of any race. household According to the Census Bureau, all the people who occupy a household. A group of unrelated people who share a housing unit as roommates or unmarried partners is also counted as a household. Households do not include group quarters such as college dormitories, prisons, or nursing homes. A household may contain more than one consumer unit. The terms “household” and “consumer unit” are used interchangeably in this book. income before taxes The total money earnings and selected money receipts accruing to a consumer unit during the 12 months prior to the interview date. Income includes the following components: • wages and salaries Includes total money earnings for all members of the consumer unit aged 14 or older from all jobs, including civilian wages and salaries, Armed Forces pay and allowances, piece-rate payments, commissions, tips, National Guard or Reserve pay (received for training periods), and cash bonuses before deductions for taxes, pensions, union dues, etc. • self-employment income Includes net business and farm income, which consists of net income (gross receipts minus operating expenses) from a profession or unincorporated business or from the operation of a farm by an owner, tenant, or sharecropper. If the business or farm is a partnership, only an appropriate share of net income is recorded. Losses are also recorded. • Social Security, private and government retirement Includes the following: payments by the federal government made under retirement, survivor, and disability insurance programs to retired persons, dependents of deceased insured workers, or to disabled workers; and private pensions or retirement beneﬁts received by retired persons or their survivors, either directly or through an insurance company. • interest, dividends, rental income, and other property income Includes interest income on savings or bonds; payments made by a corporation to its stockholders, periodic receipts from estates or trust funds; net income or loss from the rental of property, real estate, or farms, and net income or loss from roomers or boarders. • unemployment and workers’ compensation and veterans’ beneﬁts Includes income from unemployment compensation and workers’ compensation, and veterans’ payments including educational beneﬁts, but excluding military retirement. • public assistance, supplemental security income, and food stamps Includes public assistance or welfare, including WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 75

that received from job training grants; supplemental security income paid by federal, state, and local welfare agencies to low-income persons who are aged 65 or older, blind, or disabled; and the value of food stamps obtained.

region Consumer units are classiﬁed according to their address at the time of their participation in the survey. The four major census regions of the United States are the following state groupings:

• regular contributions for support Includes alimony and child support as well as any regular contributions from persons outside the consumer unit.

• Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

• other income Includes money income from care of foster children, cash scholarships, fellowships, or stipends not based on working; and meals and rent as pay.

• Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

indexed spending The indexed spending ﬁgures compare the spending of each demographic segment with that of the average household. To compute an index, the amount spent on an item by a demographic segment is divided by the amount spent on the item by the average household. That ﬁgure is then multiplied by 100. An index of 100 is the average for all households. An index of 132 means average spending by households in a segment is 32 percent above average (100 plus 32). An index of 75 means average spending by households in a segment is 25 percent below average (100 minus 25). Indexed spending ﬁgures identify the consumer units that spend the most on a product or service.

• South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

market share The market share is the percentage of total household spending on an item that is accounted for by a demographic segment. Market shares are calculated by dividing a demographic segment’s total spending on an item by the total spending of all households on the item. Total spending on an item for all households is calculated by multiplying average spending by the total number of households. Total spending on an item for each demographic segment is calculated by multiplying the segment’s average spending by the number of households in the segment. Market shares reveal the demographic segments that account for the largest share of spending on a product or service. millennial generation People born from 1977 through 1994. race The self-identiﬁed race of the consumer unit reference person. All consumer units are included in one of three racial groups: Asian, black, or “white and other.” The “other” group includes Alaska Natives, American Indians, Native Hawaiians, other Paciﬁc Islanders, and persons reporting more than one race. Hispanics may be of any race. reference person The ﬁrst member mentioned by the respondent when asked to “Start with the name of the person or one of the persons who owns or rents the home.” It is with respect to this person that the relationship of other consumer unit members is determined. Also called the householder or head of household.

76 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

• West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Who's Buying at Restaurants And Carry-outs