Who's Buying at Restaurants and Carry-outs (6th Ed.)

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THE WHO’S BUYING SERIES BY THE NEW STRATEGIST EDITORS

at Restaurants and Carry-Outs 3rd EDITION

6th EDITION

Wh

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

Copyright 2008. 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 978-1-935114-14-7 ISBN 1-935114-14-8

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, 2006 .................................9

Household Spending Trends, 2000 to 2006 ................................................................................................................10 2.

Household Spending Trends, 2000 to 2006 .................................................................................... 11

Household Spending at Restaurants and Carry-Outs, 2006 ............................................................................................13 3.

Restaurant spending, 2006 ...............................................................................................................15

Household Spending at Restaurants and Carry-Outs by Demographic Characteristic, 2006 4.

Restaurants and Carry-Outs: Average Spending by Age, 2006 ..................................................16

5.

Restaurants and Carry-Outs: Indexed Spending by Age, 2006 ..................................................17

6.

Restaurants and Carry-Outs: Total Spending by Age, 2006 ........................................................18

7.

Restaurants and Carry-Outs: Market Shares by Age, 2006 .........................................................19

8.

Restaurants and Carry-Outs: Average Spending by Income, 2006 ............................................20

9.

Restaurants and Carry-Outs: Indexed Spending by Income, 2006 ............................................21

10.

Restaurants and Carry-Outs: Total Spending by Income, 2006 ..................................................22

11.

Restaurants and Carry-Outs: Market Shares by Income, 2006 ...................................................23

12.

Restaurants and Carry-Outs: Average Spending by High-Income Consumer Units, 2006 ....24

13.

Restaurants and Carry-Outs: Indexed Spending by High-Income Consumer Units, 2006 ....25

14.

Restaurants and Carry-Outs: Total Spending by High-Income Consumer Units, 2006 .........26

15.

Restaurants and Carry-Outs: Market Shares by High-Income Consumer Units, 2006 ...........27

16.

Restaurants and Carry-Outs: Average Spending by Household Type, 2006 ............................28

17.

Restaurants and Carry-Outs: Indexed Spending by Household Type, 2006 ............................29

18.

Restaurants and Carry-Outs: Total Spending by Household Type, 2006 ..................................30

19.

Restaurants and Carry-Outs: Market Shares by Household Type, 2006 ...................................31

20.

Restaurants and Carry-Outs: Average Spending by Race and Hispanic Origin, 2006 ............32

21.

Restaurants and Carry-Outs: Indexed Spending by Race and Hispanic Origin, 2006 ............33

22.

Restaurants and Carry-Outs: Total Spending by Race and Hispanic Origin, 2006 .................34

23.

Restaurants and Carry-Outs: Market Shares by Race and Hispanic Origin, 2006 ...................35

24.

Restaurants and Carry-Outs: Average Spending by Region, 2006 .............................................36

25.

Restaurants and Carry-Outs: Indexed Spending by Region, 2006 .............................................37

26.

Restaurants and Carry-Outs: Total Spending by Region, 2006 ...................................................38

27.

Restaurants and Carry-Outs: Market Shares by Region, 2006 ....................................................39

28.

Restaurants and Carry-Outs: Average Spending by Education, 2006 .......................................40

29.

Restaurants and Carry-Outs: Indexed Spending by Education, 2006 .......................................41

30.

Restaurants and Carry-Outs: Total Spending by Education, 2006 .............................................42

31.

Restaurants and Carry-Outs: Market Shares by Education, 2006 ..............................................43

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 3

Household Spending at Restaurants and Carry-Outs by Product Category, 2006 32.

Breakfast and Brunch at Fast-Food Restaurants ...........................................................................44

33.

Breakfast and Brunch at Full-Service Restaurants ........................................................................46

34.

Dinner at Fast-Food Restaurants .....................................................................................................48

35.

Dinner at Full-Service Restaurants .................................................................................................50

36.

Lunch at Employer and School Cafeterias ....................................................................................52

37.

Lunch at Fast-Food Restaurants .....................................................................................................54

38.

Lunch at Full-Service Restaurants .................................................................................................56

39.

Restaurant and Carry-Out Food on Trips .....................................................................................58

40.

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

41.

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

42.

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

43.

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

Appendix: Spending by Product and Service, Ranked by Amount Spent, 2006......................................................................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. It includes 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 2006 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 of residence, 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 consumer unit as (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 or more persons living together who pool their income to make joint expenditure decisions. The bureau deﬁnes ﬁnancial independence in terms of “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.” The Census Bureau uses the 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-out establishments in 2006. 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 for those who purchased the 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 at restaurants and carry-out establishments in 2006 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 fast-food 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 55 to 64, for example, account for 12 percent of the market for full-service breakfasts, less than the 19 percent share accounted for by householders aged 35 to 44. But a look at the indexed spending ﬁgures reveals that, in fact, the older householders are the better customers. Householders aged 55 to 64 spend 24 percent more than the average household on full-service breakfasts, while householders aged 35 to 44 spend 6 percent less than the average household on this item. The owners of restaurants can use this information to target their best customers. Note that because of sampling errors, small differences in index values may be insigniﬁcant. But the broader patterns revealed by indexes can guide marketers to the best customers.

6 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

• 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 almost $22 billion ($21,986,602,000) on full-service dinners in 2006. 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 may 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 each demographic segment—i.e., its market share—each segment’s total spending on an 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 2006, for example, married couples with children at home accounted for 39 percent of spending on fast-food dinners, a much greater share than their 25 percent of consumer units. By targeting only these consumers, fast-food restaurants can reach a large proportion of their customers. There is 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 of residence, 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 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 saving and debt, and demographic and economic characteristics of household members. The Bureau of the Census collects data for the Consumer Expenditure Survey under contract with the Bureau of Labor Statistics, 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 10 years. Although the results have been used for a variety of purposes, their primary application is to track consumer prices. In 1980, the Consumer Expenditure Survey became continuous 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. The Consumer Expenditure Survey 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

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 7

such as houses, cars, and major appliances, or 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 Bureau of Labor Statistics reviews, audits, and cleanses the data, then weights them to reﬂect the number and characteristics of all U.S. consumer units. Like any sample survey, the Consumer Expenditure Survey 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 Consumer Expenditure Survey are available from the Bureau of Labor Statistics at http://www.bls.gov/cex/ csxstnderror.htm. Although the Consumer Expenditure Survey 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 specialists at the Bureau of Labor Statistics at (202) 691-6900, or visit the Consumer Expenditure Survey home page at http://www.bls .gov/cex/. The web site includes news releases, technical documentation, and current and historical summary-level data. The detailed average spending data shown in this report are available from the Bureau of Labor Statistics only by special request. For a comprehensive look at detailed household spending data for all products and services, see the 13th edition of Household Spending: Who Spends How Much on What. New Strategist’s books are available in hardcopy or as downloads by visiting http://www.newstrategist.com or by calling 1-800-848-0842.

8 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 1. Percent reporting expenditure and amount spent,

average week 2006 (percent of consumer units reporting expenditure and amount spent by purchasers during the average week, 2006) average week percent reporting expenditure

amount spent by purchasers

RESTAURANTS AND CARRY-OUTS Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

75.1% 56.5 43.3 23.2 5.1 12.2

$57.64 26.17 16.45 25.00 4.36 13.66

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

50.7 32.0 30.0 1.0 1.3

40.68 20.33 46.42 6.12 10.85

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

38.2 26.6 7.3 15.9 3.9

8.80 7.78 7.84 3.71 3.30

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

31.8 22.7 11.3 2.4 2.4

14.13 9.16 18.69 2.95 9.28

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 9

Household Spending Trends, 2000 to 2006 Between 2000 and 2006, spending by the average household rose by 8.7 percent, after adjusting for inﬂation. In 2006, the average household spent $48,398, according to the Bureau of Labor Statistics’ Consumer Expenditure Survey, almost $4,000 more than the inﬂation-adjusted $44,541 of 2000. Spending surged on a number of items between 2000 and 2006. Perhaps not surprisingly, the biggest gainer was gasoline. The average household spent 47 percent more on gasoline in 2006 than in 2000, after adjusting for inﬂation, and 42 percent more on natural gas. It spent $1,465 on out-of-pocket health insurance costs, 27 percent more than in 2000. Spending on property taxes climbed 24 percent, and spending on education rose 20 percent. Households boosted their spending on a handful of discretionary categories, but by smaller margins. Spending on entertainment grew 9 percent, primarily due to a 24 percent increase in spending on audio and visual equipment and services. Behind this gain is the growing popularity of high-priced high-deﬁnition television sets. Spending on food away from home (primarily restaurant meals) climbed 8 percent. The average household cut spending on a number of products and services between 2000 and 2006. Apparel spending fell 14 percent, after adjusting for inﬂation, driven in part by a 24 percent decline on footwear spending. Spending on vehicle purchases fell 15 percent partially fueled by a 24 percent spending decline on used cars and trucks. The average household’s spending on reading material dropped 32 percent between 2000 and 2006. Personal taxes declined 33 percent on average, from an inﬂation-adjusted $3,649 in 2000 to $2,432 in 2006. At the time the data shown in this report were collected, average household spending had recovered from the recession of 2001 and the sluggish economy that followed. But the effects of the 2008 slowdown on consumer spending had yet to be felt.

Households are spending less on some items, more on others 60

(percent change in spending by the average household on selected products and services, 2000 to 2006; in 2006 dollars)

47%

40

40%

27%

20

20%

20%

9%

0

0%

–3%

-20 -40

–14%

–20%

–32% readinga material

apparel b

10 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

food c at home

entertainment d

education e

health insurance f

gasoline g

Table 2. Household spending trends, 2000 to 2006 (average annual spending of total consumer units, 2000 and 2006; percent change, 2000–06; in 2006 dollars) percent change 2006 2000 2000–06 Number of consumer units (in 000s) Average before-tax income of consumer units Average annual spending of consumer units

118,843 $60,533 48,398

109,367 $52,272 44,541

FOOD Food at home Cereals and bakery products Cereals and cereal products Bakery products Meats, poultry, ﬁsh, and eggs Beef Pork Other meats Poultry Fish and seafood Eggs Dairy products Fresh milk and cream Other dairy products Fruits and vegetables Fresh fruits Fresh vegetables Processed fruits Processed vegetables Other food at home Sugar and other sweets Fats and oils Miscellaneous foods Nonalcoholic beverages Food prepared by consumer unit on trips

6,111 3,417 446 143 304 797 236 157 105 141 122 37 368 140 228 592 195 193 109 95 1,212 125 86 627 332 43

6,039 3,537 530 183 348 931 279 196 118 170 129 40 380 153 226 610 191 186 135 98 1,085 137 97 512 293 47

Food away from home

2,694

2,502

7.7

497

436

14.1

16,366 9,673 6,516 3,753 1,649 1,115 2,590 567

14,422 8,329 5,388 3,090 1,333 966 2,381 560

13.5 16.1 20.9 21.5 23.7 15.4 8.8 1.3

3,397 509 1,266 138 1,087 397

2,914 359 1,067 114 1,027 347

16.6 41.6 18.7 21.5 5.9 14.6

Household services Personal services Other household services

948 393 555

801 382 419

18.4 3.0 32.4

Housekeeping supplies Laundry and cleaning supplies Other household products Postage and stationery

640 151 330 159

564 153 265 148

13.4 –1.5 24.7 7.8

1,708 154 463

1,813 124 458

–5.8 24.1 1.1

ALCOHOLIC BEVERAGES HOUSING Shelter Owned dwellings Mortgage interest and charges Property taxes Maintenance, repair, insurance, other expenses Rented dwellings Other lodging Utilities, fuels, and public services Natural gas Electricity Fuel oil and other fuels Telephone services Water and other public services

Household furnishings and equipment Household textiles Furniture

8.7% 15.8 8.7 1.2 –3.4 –15.9 –21.7 –12.6 –14.4 –15.3 –19.7 –11.2 –16.9 –5.3 –7.0 –3.3 –8.7 0.9 –2.9 2.2 3.7 –19.0 –3.4 11.7 –8.7 –11.5 22.6 13.4 –8.2

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 11

Floor coverings Major appliances Small appliances and miscellaneous housewares Miscellaneous household equipment APPAREL AND RELATED SERVICES Men and boys Men, aged 16 or older Boys, aged 2 to 15 Women and girls Women, aged 16 or older Girls, aged 2 to 15 Children under age 2 Footwear Other apparel products and services

percent change 2000–06

2006

2000

$48 241 109 693

$52 221 102 856

1,874 444 353 91

2,173 515 403 112

–13.8 –13.8 –12.3 –19.0

751 629 122

849 711 138

–11.5 –11.5 –11.7

–6.8% 8.9 7.0 –19.0

96

96

0.0

304

402

–24.3

280

311

–10.1

TRANSPORTATION Vehicle purchases Cars and trucks, new Cars and trucks, used Other vehicles

8,508 3,421 1,798 1,568 54

8,683 4,002 1,879 2,072 50

–2.0 –14.5 –4.3 –24.3 7.3

Gasoline and motor oil

2,227

1,511

47.3

Other vehicle expenses Vehicle ﬁnance charges Maintenance and repairs Vehicle insurance Vehicle rentals, leases, licenses, other charges

2,355 298 688 886 482

2,670 384 731 911 645

–11.8 –22.4 –5.8 –2.7 –25.3

Public transportation

505

500

1.0

HEALTH CARE Health insurance Medical services Drugs Medical supplies

2,766 1,465 670 514 117

2,419 1,151 665 487 116

14.4 27.3 0.8 5.5 0.9

ENTERTAINMENT Fees and admissions Audio and visual equipment and services Pets, toys, and playground equipment Other entertainment products and services

2,376 606 906 412 451

2,181 603 728 391 460

8.9 0.5 24.4 5.4 –2.0

PERSONAL CARE PRODUCTS, SERVICES

585

660

–11.4

READING

117

171

–31.5

EDUCATION

888

740

20.0

TOBACCO PRODUCTS, SMOKING SUPPLIES

327

373

–12.4

MISCELLANEOUS

846

908

–6.9

CASH CONTRIBUTIONS

1,869

1,396

33.9

PERSONAL INSURANCE AND PENSIONS Life and other personal insurance Pensions and Social Security

5,270 322 4,948

3,940 467 3,472

33.8 –31.1 –*

PERSONAL TAXES Federal income taxes State and local income taxes Other taxes

2,432 1,711 519 202

3,649 2,820 658 171

–33.4 –39.3 –21.1 18.2

GIFTS FOR PEOPLE IN OTHER HOUSEHOLDS

1,154

1,268

–9.0

* Spending in 2006 on pensions and Social Security is not comparable with 2000 because of changes in methodology. Note: Average spending is rounded to the nearest dollar, but the percent change calculation is based on unrounded ﬁgures. 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 2006 Consumer Expenditure Surveys, Internet site http://www.bls.gov/cex/; calculations by New Strategist

12 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Household Spending at Restaurants and Carry-Outs, 2006 Between 2000 and 2006, average household spending at restaurants and carry-outs climbed by a substantial 8 percent, after adjusting for inﬂation. What once was a special occasion—eating out—has become a necessity over the past few decades as busy two-earner families try to save time. The Bureau of Labor Statistics reports that during the average week of 2006, nearly 75 percent of households purchased food from restaurants, spending an average of $58. The average household spent $2,492 at restaurants in 2006. This ﬁgure was 73 percent of what the average household spent on groceries ($3,417). Among some demographic segments, the proportion of the food dollar devoted to restaurants is even higher. Householders under age 25 spend 94 percent as much eating out as on groceries, the ﬁgure falling with age to 52 percent among householders aged 75 or older. Among households with incomes of $100,000 or more, the ﬁgure is 91 percent. People who live alone spend 84 percent as much eating out as on groceries. Households devote more of their restaurant dollars to dinners (43 percent) than to lunches (31 percent). Breakfasts account for another 9 percent of restaurant spending, snacks for 7 percent, and restaurant meals on trips (which the survey does not break down by type of restaurant) account for the remaining 10 percent. The average household devotes less of the eating-out dollar to fast food than to full-service restaurants. Of the $2,492 the average household spent on eating out in 2006, fast-food restaurants captured a 37 percent share, and full-service restaurants took a larger 47 percent. The remainder is spent at employer and school cafeterias, vending machines, mobile vendors, and on trips. Older Americans, particularly empty-nesters, are far more likely to choose full-service over fast-food restaurants. Among householders under age 25, fast food claims 49 percent of the restaurant dollar. The fast-food share declines with age to just 21 percent of the restaurant spending of householders aged 75 or older. The demands of children explain changing restaurant preferences with age. Among household types, single parents devote the largest share of their dining-out dollars to fast-food restaurants (49 percent). In contrast, married couples without children at home (most of them empty-nesters) spend only 29 percent of their restaurant dollars in fast-food establishments.

Spending by age Not surprisingly, the middle-aged spend the most at restaurants and carry-outs because they have the highest incomes and the largest households. Overall, householders aged 35 to 54 spend 18 to 19 percent more than the average household at restaurants and carry-outs. But householders under age 25 spend the most on lunch and dinner from vending machines and mobile vendors, while householders aged 55 to 64 spend the most on full-service breakfasts.

Spending by household income The most afﬂuent households spend much more than average at restaurants and carry-outs. In 2006, households with incomes of $100,000 or more spent nearly twice the average at restaurants and carry-outs. The $100,000-or-more income group accounts for 31 percent of household spending on eating out—nearly double its 16 percent share of households. These afﬂuent households control 34 percent of spending on full-service restaurant dinners and 43 percent of spending on restaurant food while traveling.

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 13

Spending by household type Married couples with school-aged or older children at home spend more eating out than any other household type—37 to 49 percent more than average in 2006. Married couples without children at home (most of them empty-nesters) spend much more than average on full-service breakfasts, lunches, and dinners. Single parents spend 76 percent more than the average household 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 9 percent less than average on this category, and black households spend 34 percent less. Asians are the biggest spenders on both fast-food and fullservice lunches as well as dinners. Hispanics spend the most on food from vending machines and mobile vendors.

Spending by region Average annual household spending on restaurant and carry-out food is highest in the West ($2,938) and lowest in the Midwest ($2,289). Households in the Northeast are the biggest spenders on fast-food breakfasts (32 percent above average), but they spend 5 percent less than average on fast-food lunches. Households in the West are the biggest spenders on most categories of restaurant meals, including meals while traveling.

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, including spending 50 and 51 percent above average on full-service lunches and dinners, respectively. College graduates control more than 42 percent of spending on full-service lunches and dinners and half of spending on restaurant meals while traveling.

14 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 3. Restaurant spending, 2006 (average annual household spending at restaurants and carry-outs, and percent distribution of spending by type of restaurant and type of meal, 2006; ranked by amount spent) average household spending

percent distribution

AVERAGE HOUSEHOLD SPENDING AT RESTAURANTS BY TYPE OF MEAL

Total restaurant spending Dinner Lunch Restaurant meals on trips Breakfast and brunch Snacks and nonalcoholic beverages

$2,492.31 1,072.70 768.62 242.93 233.43 174.63

100.0% 43.0 30.8 9.7 9.4 7.0

AVERAGE HOUSEHOLD SPENDING BY TYPE OF MEAL AND RESTAURANT

Total restaurant spending • Dinner At full-service restaurants At fast-food restaurants* • Lunch At fast-food restaurants* At full-service restaurants At employer and school cafeterias • Breakfast and brunch At fast-food restaurants* At full-service restaurants • Snacks and nonalcoholic beverages At fast-food restaurants* At vending machines, mobile vendors At full-service restaurants At employer and school cafeterias • Restaurant meals on trips

2,492.31 1,072.70 724.57 337.90 768.62 370.06 301.09 86.15 233.43 108.19 109.97 174.63 107.45 30.56 29.80 6.82 242.93

100.0 43.0 29.1 13.6 30.8 14.8 12.1 3.5 9.4 4.3 4.4 7.0 4.3 1.2 1.2 0.3 9.7

2,492.31 923.60 370.06 337.90 107.45 108.19 1,165.43 724.57 301.09 109.97 29.80 242.93

100.0 37.1 14.8 13.6 4.3 4.3 46.8 29.1 12.1 4.4 1.2 9.7

AVERAGE HOUSEHOLD SPENDING AT RESTAURANTS BY TYPE OF RESTAURANT AND MEAL

Total restaurant spending • At fast-food restaurants* Lunch Dinner Snacks and nonalcoholic beverages Breakfast and brunch • At full-service restaurants Dinner Lunch Breakfast and brunch Snacks and nonalcoholic beverages • Restaurant meals on trips

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Subcategories will not add to total because not all types of restaurants or meals are shown. Source: Bureau of Labor Statistics, 2006 Consumer Expenditure Survey; calculations by New Strategist

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 15

Table 4. Restaurants and Carry-Outs: Average spending by age, 2006 (average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2006) total consumer units Number of consumer units (in 000s) 118,843 Number of persons per CU 2.5 Average before-tax income of CU $60,533.00 Average spending of CU, total 48,398.32

under 25 8,167 2.0 $29,057.00 28,180.58

25 to 34 20,071 2.9 $57,208.00 47,582.37

35 to 44 23,950 3.2 $75,613.00 57,476.34

45 to 54 24,696 2.7 $77,043.00 57,563.25

55 to 64 18,952 2.0 $64,425.00 50,788.79

65 to 74 11,764 1.9 $46,064.00 40,959.64

75+ 11,243 1.5 $29,525.00 28,904.49

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

1,826.36 554.97 366.82 134.54 16.91 36.70

2,762.88 873.77 476.80 282.29 15.13 99.55

2,939.47 962.04 483.18 308.92 11.88 158.05

2,975.31 904.03 421.83 350.71 17.15 114.34

2,406.43 684.27 301.10 331.60 6.22 45.35

2,000.99 594.80 222.34 336.09 5.59 30.78

1,160.89 357.64 102.65 242.30 1.43 11.26

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

854.79 363.10 462.44 10.70 18.55

1,203.56 448.74 743.77 4.00 7.05

1,226.49 443.13 774.76 3.32 5.28

1,291.50 392.37 890.29 2.96 5.88

1,042.11 258.50 772.45 1.15 10.01

830.89 185.38 639.69 2.51 3.32

505.48 76.50 424.22 0.02 4.74

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

167.84 86.78 26.62 39.55 14.89

226.15 130.38 43.86 44.30 7.62

219.17 133.37 35.56 41.05 9.19

216.00 142.04 32.38 34.98 6.60

139.96 89.10 23.77 21.46 5.63

95.15 63.35 16.90 12.57 2.32

46.28 29.31 12.84 2.22 1.91

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

156.54 76.86 61.43 5.80 12.46

263.33 142.74 99.88 4.90 15.80

262.15 138.20 103.56 5.07 15.32

265.49 136.04 108.69 4.43 16.33

228.31 83.62 136.79 2.76 5.14

206.82 67.04 133.28 0.80 5.69

141.75 29.95 109.33 0.79 1.68

Restaurant and carry-out food on trips 242.93

92.22

196.07

269.62

298.29

311.78

273.33

109.74

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

16 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 5. Restaurants and Carry-Outs: Indexed spending by age, 2006 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by age of consumer unit reference person, 2006; 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 $48,398 100

under 25 $28,181 58

25 to 34 $47,582 98

35 to 44 $57,476 119

45 to 54 $57,563 119

55 to 64 $50,789 105

65 to 74 $40,960 85

75+ $28,904 60

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

73 72 99 45 150 43

111 114 129 94 134 116

118 125 131 103 105 183

119 118 114 116 152 133

97 89 81 110 55 53

80 77 60 112 49 36

47 47 28 80 13 13

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

80 107 64 344 261

112 133 103 129 99

114 131 107 107 74

120 116 123 95 83

97 77 107 37 141

77 55 88 81 47

47 23 59 1 67

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

96 81 89 129 218

130 121 147 145 112

126 124 119 134 135

124 132 109 114 97

80 83 80 70 83

54 59 57 41 34

27 27 43 7 28

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

67 71 56 154 108

113 132 91 130 137

112 128 94 135 133

114 126 99 118 142

98 77 124 73 45

89 62 121 21 49

61 28 99 21 15

Restaurant and carry-out food on trips

100

38

81

111

123

128

113

45

Average spending of CU, total Average spending of CU, index RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 17

Table 6. Restaurants and Carry-Outs: Total spending by age, 2006 (total annual spending on restaurant and carry-out food, by consumer unit (CU) age group, 2006; consumer units and dollars in thousands)

Number of consumer units Total spending of all CUs

total consumer units under 25 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+ 118,843 8,167 20,071 23,950 24,696 18,952 11,764 11,243 $5,751,801,544 $230,150,797 $955,025,748 $1,376,558,343 $1,421,582,022 $962,549,148 $481,849,205 $324,973,181

RESTAURANTS AND CARRY-OUTS 296,193,597

91,345,107 43,979,041 35,782,439 1,344,114 10,238,324

14,915,882 4,532,440 2,995,819 1,098,788 138,104 299,729

55,453,764 17,537,438 9,569,853 5,665,843 303,674 1,998,068

70,400,307 23,040,858 11,572,161 7,398,634 284,526 3,785,298

73,478,256 22,325,925 10,417,514 8,661,134 423,536 2,823,741

45,606,661 12,968,285 5,706,447 6,284,483 117,881 859,473

23,539,646 6,997,227 2,615,608 3,953,763 65,761 362,096

13,051,886 4,020,947 1,154,094 2,724,179 16,077 126,596

Dinner 127,482,886 At fast-food restaurants* 40,157,050 At full-service restaurants 86,110,073 At vending machines, mobile vendors 369,602 At employer and school cafeterias 844,974

6,981,070 2,965,438 3,776,747 87,387 151,498

24,156,653 9,006,661 14,928,208 80,284 141,501

29,374,436 10,612,964 18,555,502 79,514 126,456

31,894,884 9,689,970 21,986,602 73,100 145,212

19,750,069 4,899,092 14,639,472 21,795 189,710

9,774,590 2,180,810 7,525,313 29,528 39,056

5,683,112 860,090 4,769,505 225 53,292

Snacks and nonalcoholic beverages 20,753,553 At fast-food restaurants* 12,769,680 At full-service restaurants 3,541,521 At vending machines, mobile vendors 3,631,842 At employer and school cafeterias 810,509

1,370,749 708,732 217,406 323,005 121,607

4,539,057 2,616,857 880,314 889,145 152,941

5,249,122 3,194,212 851,662 983,148 220,101

5,334,336 3,507,820 799,656 863,866 162,994

2,652,522 1,688,623 450,489 406,710 106,700

1,119,345 745,249 198,812 147,873 27,292

520,326 329,532 144,360 24,959 21,474

Breakfast and brunch 27,741,521 At fast-food restaurants* 12,857,624 At full-service restaurants 13,069,165 At vending machines, mobile vendors 446,850 At employer and school cafeterias 1,369,071

1,278,462 627,716 501,699 47,369 101,761

5,285,296 2,864,935 2,004,691 98,348 317,122

6,278,493 3,309,890 2,480,262 121,427 366,914

6,556,541 3,359,644 2,684,208 109,403 403,286

4,326,931 1,584,766 2,592,444 52,308 97,413

2,433,030 788,659 1,567,906 9,411 66,937

1,593,695 336,728 1,229,197 8,882 18,888

Restaurant, carry-out food on trips 28,870,530

753,161

3,935,321

6,457,399

7,366,570

5,908,855

3,215,454

1,233,807

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

18 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 7. Restaurants and Carry-Outs: Market shares by age, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer unit age groups, 2006)

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 6.9% 3.3 4.0

25 to 34 16.9% 16.0 16.6

35 to 44 20.2% 25.2 23.9

45 to 54 20.8% 26.4 24.7

55 to 64 15.9% 17.0 16.7

65 to 74 9.9% 7.5 8.4

75+ 9.5% 4.6 5.6

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

5.0 5.0 6.8 3.1 10.3 2.9

18.7 19.2 21.8 15.8 22.6 19.5

23.8 25.2 26.3 20.7 21.2 37.0

24.8 24.4 23.7 24.2 31.5 27.6

15.4 14.2 13.0 17.6 8.8 8.4

7.9 7.7 5.9 11.0 4.9 3.5

4.4 4.4 2.6 7.6 1.2 1.2

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

5.5 7.4 4.4 23.6 17.9

18.9 22.4 17.3 21.7 16.7

23.0 26.4 21.5 21.5 15.0

25.0 24.1 25.5 19.8 17.2

15.5 12.2 17.0 5.9 22.5

7.7 5.4 8.7 8.0 4.6

4.5 2.1 5.5 0.1 6.3

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

6.6 5.6 6.1 8.9 15.0

21.9 20.5 24.9 24.5 18.9

25.3 25.0 24.0 27.1 27.2

25.7 27.5 22.6 23.8 20.1

12.8 13.2 12.7 11.2 13.2

5.4 5.8 5.6 4.1 3.4

2.5 2.6 4.1 0.7 2.6

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

4.6 4.9 3.8 10.6 7.4

19.1 22.3 15.3 22.0 23.2

22.6 25.7 19.0 27.2 26.8

23.6 26.1 20.5 24.5 29.5

15.6 12.3 19.8 11.7 7.1

8.8 6.1 12.0 2.1 4.9

5.7 2.6 9.4 2.0 1.4

Restaurant and carry-out food on trips

100.0

2.6

13.6

22.4

25.5

20.5

11.1

4.3

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 19

Table 8. Restaurants and Carry-Outs: Average spending by income, 2006 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units (CU), 2006) total consumer units Number of consumer units (in 000s) 118,843 Number of persons per CU 2.5 Average before-tax income of CU $60,533.00 Average spending of CU, total 48,398.32

under $20,000 26,075 1.7 $10,783.16 20,824.88

$20,000– $39,999 27,536 2.2 $29,630.20 31,972.38

$40,000– $49,999 11,446 2.5 $44,620.00 39,572.86

$50,000– $69,999 17,674 2.8 $59,253.00 50,085.83

$70,000– $79,999 6,956 2.8 $74,647.00 57,351.54

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

1,001.46 310.50 168.92 114.85 4.87 21.85

1,637.61 554.35 296.77 200.35 12.95 44.28

2,150.60 640.32 308.51 257.45 11.88 62.49

2,703.55 853.58 417.10 319.87 14.64 101.97

2,856.11 873.33 442.02 317.10 10.79 103.43

3,611.06 1,076.20 500.30 407.44 14.80 153.67

4,807.51 1,420.50 612.27 616.89 12.18 179.17

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

428.57 154.82 264.79 1.93 7.02

670.45 258.85 402.73 2.84 6.04

962.91 336.99 618.50 2.32 5.09

1,128.42 386.16 731.95 3.96 6.34

1,231.45 397.28 824.47 3.56 6.14

1,593.06 482.20 1,096.93 5.62 8.31

2,091.64 525.84 1,552.88 2.87 10.04

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

81.86 45.19 13.94 19.53 3.21

123.47 68.79 22.36 25.16 7.14

161.25 94.31 26.36 33.57 7.01

199.57 118.07 41.11 34.74 5.65

204.15 130.49 28.25 35.80 9.61

248.75 160.73 36.04 40.99 11.00

292.86 198.21 47.82 38.13 8.70

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

107.70 47.79 52.38 1.74 5.79

181.61 87.64 82.97 3.79 7.21

224.53 99.23 108.88 4.05 12.36

297.74 137.29 141.50 5.73 13.22

235.30 122.27 96.11 3.55 13.38

338.99 160.53 157.53 4.72 16.21

347.11 154.87 169.77 3.50 18.97

Restaurant and carry-out food on trips 242.93

72.83

107.73

161.59

224.24

311.88

354.06

655.40

RESTAURANTS AND CARRY-OUTS

$80,000– $100,000 $99,999 or more 10,241 18,915 3.0 3.2 $88,763.00 $164,452.00 65,809.86 100,386.31

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

20 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 9. Restaurants and Carry-Outs: Indexed spending by income, 2006 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by before-tax income of consumer unit, 2006; 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 $48,398 100

under $20,000 $20,825 43

$20,000– $39,999 $31,972 66

$40,000– $49,999 $39,573 82

$50,000– $69,999 $50,086 103

$70,000– $79,999 $57,352 118

$80,000– $99,999 $65,810 136

$100,000 or more $100,386 207

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

40 40 46 38 43 25

66 72 80 67 115 51

86 83 83 86 105 73

108 111 113 106 129 118

115 114 119 105 95 120

145 140 135 135 131 178

193 185 165 205 108 208

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

40 46 37 62 99

63 77 56 91 85

90 100 85 75 72

105 114 101 127 89

115 118 114 114 86

149 143 151 181 117

195 156 214 92 141

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

47 42 47 64 47

71 64 75 82 105

92 88 88 110 103

114 110 138 114 83

117 121 95 117 141

142 150 121 134 161

168 184 160 125 128

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

46 44 48 46 50

78 81 75 101 63

96 92 99 108 107

128 127 129 152 115

101 113 87 94 116

145 148 143 126 141

149 143 154 93 165

Restaurant and carry-out food on trips

100

30

44

67

92

128

146

270

Average spending of CU, total Average spending of CU, index RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 21

Table 10. Restaurants and Carry-Outs: Total spending by income, 2006 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units (CU), 2006; consumer units and dollars in thousands)

Number of consumer units Total spending of all CUs

total under $20,000– $40,000– $50,000– $70,000– consumer units $20,000 $39,999 $49,999 $69,999 $79,999 118,843 26,075 27,536 11,446 17,674 6,956 $5,751,801,544 $543,008,700 $880,391,370 $452,950,956 $885,216,959 $398,937,312

RESTAURANTS AND CARRY-OUTS 296,193,597

$80,000– $99,999 10,241

$100,000 or more 18,915

$673,958,776 $1,898,807,054

91,345,107 43,979,041 35,782,439 1,344,114 10,238,324

26,113,013 8,096,357 4,404,686 2,994,783 127,059 569,828

45,093,288 15,264,639 8,171,835 5,516,795 356,641 1,219,358

24,615,768 7,329,103 3,531,205 2,946,773 135,978 715,261

47,782,543 15,086,173 7,371,825 5,653,382 258,747 1,802,218

19,867,101 6,074,883 3,074,691 2,205,748 75,055 719,459

36,980,865 11,021,364 5,123,572 4,172,593 151,567 1,573,734

90,934,052 26,868,758 11,581,087 11,668,474 230,385 3,389,001

Dinner 127,482,886 At fast-food restaurants* 40,157,050 At full-service restaurants 86,110,073 At vending machines, mobile vendors 369,602 At employer and school cafeterias 844,974

11,174,848 4,036,918 6,904,457 50,421 183,097

18,461,378 7,127,736 11,089,497 78,075 166,345

11,021,468 3,857,188 7,079,351 26,555 58,260

19,943,695 6,824,992 12,936,484 69,989 112,053

8,565,966 2,763,480 5,735,013 24,763 42,710

16,314,527 4,938,210 11,233,660 57,554 85,103

39,563,371 9,946,264 29,372,725 54,286 189,907

Snacks and nonalcoholic beverages 20,753,553 At fast-food restaurants* 12,769,680 At full-service restaurants 3,541,521 At vending machines, mobile vendors 3,631,842 At employer and school cafeterias 810,509

2,134,562 1,178,243 363,363 509,342 83,703

3,399,762 1,894,238 615,820 692,818 196,744

1,845,668 1,079,472 301,717 384,242 80,236

3,527,200 2,086,769 726,578 613,995 99,858

1,420,067 907,688 196,507 249,025 66,847

2,547,449 1,646,036 369,086 419,779 112,651

5,539,447 3,749,142 904,515 721,229 164,561

Breakfast and brunch 27,741,521 At fast-food restaurants* 12,857,624 At full-service restaurants 13,069,165 At vending machines, mobile vendors 446,850 At employer and school cafeterias 1,369,071

2,808,286 1,246,230 1,365,695 45,261 151,055

5,000,939 2,413,350 2,284,692 104,374 198,522

2,569,970 1,135,787 1,246,240 46,356 141,473

5,262,257 2,426,463 2,500,871 101,272 233,650

1,636,747 850,510 668,541 24,694 93,071

3,471,597 1,643,988 1,613,265 48,338 166,007

6,565,586 2,929,366 3,211,200 66,203 358,818

Restaurant, carry-out food on trips 28,870,530

1,898,960

2,966,569

1,849,559

3,963,218

2,169,437

3,625,928

12,396,891

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

22 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 11. Restaurants and Carry-Outs: Market shares by income, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units, 2006)

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 $20,000 21.9% 3.9 9.4

$20,000– $39,999 23.2% 11.3 15.3

$40,000– $49,999 9.6% 7.1 7.9

$50,000– $69,999 14.9% 14.6 15.4

$70,000– $79,999 5.9% 7.2 6.9

$80,000– $99,999 8.6% 12.6 11.7

$100,000 or more 15.9% 43.2 33.0

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

8.8 8.9 10.0 8.4 9.5 5.6

15.2 16.7 18.6 15.4 26.5 11.9

8.3 8.0 8.0 8.2 10.1 7.0

16.1 16.5 16.8 15.8 19.3 17.6

6.7 6.7 7.0 6.2 5.6 7.0

12.5 12.1 11.7 11.7 11.3 15.4

30.7 29.4 26.3 32.6 17.1 33.1

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

8.8 10.1 8.0 13.6 21.7

14.5 17.7 12.9 21.1 19.7

8.6 9.6 8.2 7.2 6.9

15.6 17.0 15.0 18.9 13.3

6.7 6.9 6.7 6.7 5.1

12.8 12.3 13.0 15.6 10.1

31.0 24.8 34.1 14.7 22.5

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

10.3 9.2 10.3 14.0 10.3

16.4 14.8 17.4 19.1 24.3

8.9 8.5 8.5 10.6 9.9

17.0 16.3 20.5 16.9 12.3

6.8 7.1 5.5 6.9 8.2

12.3 12.9 10.4 11.6 13.9

26.7 29.4 25.5 19.9 20.3

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

10.1 9.7 10.4 10.1 11.0

18.0 18.8 17.5 23.4 14.5

9.3 8.8 9.5 10.4 10.3

19.0 18.9 19.1 22.7 17.1

5.9 6.6 5.1 5.5 6.8

12.5 12.8 12.3 10.8 12.1

23.7 22.8 24.6 14.8 26.2

Restaurant and carry-out food on trips

100.0

6.6

10.3

6.4

13.7

7.5

12.6

42.9

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 23

Table 12. Restaurants and Carry-Outs: Average spending by high-income consumer units, 2006 (average annual spending on restaurant and carry-out food, by before-tax income of consumer units with high incomes, 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32

$100,000 or more 18,915 3.2 $164,452.00 100,386.31

$100,000– $119,999 6,300 3.2 $108,417.00 78,128.93

$120,000– $149,999 5,357 3.1 $132,682.00 88,646.65

$150,000 or more 7,258 3.2 $236,545.00 128,681.21

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

4,807.51 1,420.50 612.27 616.89 12.18 179.17

4,107.69 1,220.33 595.47 442.83 12.93 169.10

4,654.74 1,405.51 606.74 591.47 13.71 193.58

5,598.23 1,630.60 633.17 809.08 10.25 178.10

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

2,091.64 525.84 1,552.88 2.87 10.04

1,824.45 507.06 1,306.43 3.14 7.81

1,994.48 606.62 1,366.05 2.61 19.20

2,431.29 482.50 1,940.75 2.81 5.23

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

292.86 198.21 47.82 38.13 8.70

234.77 137.84 44.00 43.37 9.55

315.45 228.16 45.89 34.64 6.76

333.17 235.13 53.09 35.60 9.36

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

347.11 154.87 169.77 3.50 18.97

324.40 138.70 162.70 5.57 17.43

353.45 159.62 176.97 3.44 13.43

364.78 167.28 171.27 1.49 24.74

Restaurant and carry-out food on trips

242.93

655.40

503.74

585.85

838.39

Number of consumer units (in 000s) Number of persons per consumer unit Average before-tax income of consumer units Average spending of consumer units, total RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

24 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 13. Restaurants and Carry-Outs: Indexed spending by high-income consumer units, 2006 (indexed average annual spending of consumer units with high incomes on restaurant and carry-out food, by before-tax income of consumer unit, 2006; 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 $48,398 100

$100,000 or more $100,386 207

$100,000– $119,999 $78,129 161

$120,000– $149,999 $88,647 183

$150,000 or more $128,681 266

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

193 185 165 205 108 208

165 159 161 147 114 196

187 183 164 196 121 225

225 212 171 269 91 207

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

195 156 214 92 141

170 150 180 101 110

186 180 189 84 270

227 143 268 90 74

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

168 184 160 125 128

134 128 148 142 140

181 212 154 113 99

191 219 178 116 137

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

149 143 154 93 165

139 128 148 148 151

151 148 161 91 117

156 155 156 40 215

Restaurant and carry-out food on trips

100

270

207

241

345

Average spending of consumer units, total Average spending of consumer units, index RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 25

Table 14. Restaurants and Carry-Outs: Total spending by high-income consumer units, 2006 (total annual spending on restaurant and carry-out food, by before-tax income group of consumer units with high incomes, 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544

$100,000 or more 18,915 $1,898,807,054

$100,000– $119,999 6,300 $492,212,259

$120,000– $149,999 5,357 $474,880,104

$150,000 or more 7,258 $933,968,222

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

296,193,597 91,345,107 43,979,041 35,782,439 1,344,114 10,238,324

90,934,052 26,868,758 11,581,087 11,668,474 230,385 3,389,001

25,878,447 7,688,079 3,751,461 2,789,829 81,459 1,065,330

24,935,442 7,529,317 3,250,306 3,168,505 73,444 1,037,008

40,631,953 11,834,895 4,595,548 5,872,303 74,395 1,292,650

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

127,482,886 40,157,050 86,110,073 369,602 844,974

39,563,371 9,946,264 29,372,725 54,286 189,907

11,494,035 3,194,478 8,230,509 19,782 49,203

10,684,429 3,249,663 7,317,930 13,982 102,854

17,646,303 3,501,985 14,085,964 20,395 37,959

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

20,753,553 12,769,680 3,541,521 3,631,842 810,509

5,539,447 3,749,142 904,515 721,229 164,561

1,479,051 868,392 277,200 273,231 60,165

1,689,866 1,222,253 245,833 185,566 36,213

2,418,148 1,706,574 385,327 258,385 67,935

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

27,741,521 12,857,624 13,069,165 446,850 1,369,071

6,565,586 2,929,366 3,211,200 66,203 358,818

2,043,720 873,810 1,025,010 35,091 109,809

1,893,432 855,084 948,028 18,428 71,945

2,647,573 1,214,118 1,243,078 10,814 179,563

Restaurant and carry-out food on trips

28,870,530

12,396,891

3,173,562

3,138,398

6,085,035

Number of consumer units Total spending of all consumer units RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

26 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 15. Restaurants and Carry-Outs: Market shares by high-income consumer units, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by before-tax income group of consumer units with high incomes, 2006)

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

total consumer units 100.0% 100.0 100.0

$100,000 or more 15.9% 43.2 33.0

$100,000– $119,999 5.3% 9.5 8.6

$120,000– $149,999 4.5% 9.9 8.3

$150,000 or more 6.1% 23.9 16.2

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

30.7 29.4 26.3 32.6 17.1 33.1

8.7 8.4 8.5 7.8 6.1 10.4

8.4 8.2 7.4 8.9 5.5 10.1

13.7 13.0 10.4 16.4 5.5 12.6

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

31.0 24.8 34.1 14.7 22.5

9.0 8.0 9.6 5.4 5.8

8.4 8.1 8.5 3.8 12.2

13.8 8.7 16.4 5.5 4.5

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

26.7 29.4 25.5 19.9 20.3

7.1 6.8 7.8 7.5 7.4

8.1 9.6 6.9 5.1 4.5

11.7 13.4 10.9 7.1 8.4

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

23.7 22.8 24.6 14.8 26.2

7.4 6.8 7.8 7.9 8.0

6.8 6.7 7.3 4.1 5.3

9.5 9.4 9.5 2.4 13.1

Restaurant and carry-out food on trips

100.0

42.9

11.0

10.9

21.1

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 27

Table 16. Restaurants and Carry-Outs: Average spending by household type, 2006 (average annual spending of consumer units (CU) on restaurant and carry-out food, by type of consumer unit, 2006)

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

total consumer units

total married couples

married couples, no children

118,843

59,428

2.5

3.2

$60,533.00

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

25,306

29,381

5,763

15,166

8,452

7,225

35,221

2.0

3.9

3.5

4.1

3.9

2.9

1.0

$82,195.00

$73,032.00

$89,351.00

$81,372.00

$89,792.00

$93,999.00

$34,852.00

$31,557.00

48,398.32

62,503.18

55,631.38

68,354.25

63,415.54

69,157.47

70,233.96

35,490.95

29,374.35

2,492.31

3,204.69

2,911.92

3,501.33

2,995.94

3,713.77

3,414.87

1,819.65

1,458.61

Lunch

768.62

985.07

779.64

1,168.41

991.26

1,268.33

1,085.77

582.95

442.68

At fast-food restaurants*

370.06

458.25

345.88

549.17

561.10

569.31

500.54

313.71

213.32

At full-service restaurants

301.09

395.96

387.90

412.76

325.86

428.99

438.35

110.82

195.99

At vending machines, mobile vendors

11.31

12.72

12.61

12.74

8.66

13.16

14.62

6.61

5.75

At employer and school cafeterias

86.15

118.13

33.25

193.74

95.65

256.86

132.26

151.81

27.62

RESTAURANTS AND CARRY-OUTS

Dinner

1,072.70

1,379.90

1,312.61

1,457.03

1,287.00

1,535.28

1,413.35

800.88

621.03

At fast-food restaurants*

337.90

424.40

302.38

531.68

504.21

563.08

486.78

393.74

155.29

At full-service restaurants

724.57

944.86

1,002.34

913.90

767.99

962.90

913.03

400.66

456.36

At vending machines, mobile vendors

3.11

3.42

2.40

4.04

2.40

4.69

3.84

1.62

2.39

At employer and school cafeterias

7.11

7.22

5.49

7.41

12.39

4.62

9.70

4.86

7.00

Snacks and nonalcoholic beverages

174.63

215.38

161.82

265.54

229.82

281.13

258.08

153.03

100.47

At fast-food restaurants*

107.45

136.37

99.23

169.28

147.57

184.25

153.65

88.57

58.38

At full-service restaurants

29.80

36.06

31.30

41.68

32.10

37.22

57.08

19.05

18.76

At vending machines, mobile vendors

30.56

35.02

24.67

44.69

40.48

48.81

39.21

38.50

18.52

6.82

7.93

6.62

9.90

9.66

10.85

8.15

6.91

4.81

Breakfast and brunch

233.43

282.46

268.79

292.08

229.53

301.34

315.41

163.23

148.51

At fast-food restaurants*

108.19

128.62

100.28

149.78

131.23

148.20

165.43

98.83

66.72

At full-service restaurants

109.97

137.15

157.31

120.42

76.38

130.36

129.92

45.97

69.92

3.76

3.72

3.73

3.50

2.31

4.42

2.45

2.31

3.28

11.52

12.96

7.47

18.38

19.60

18.36

17.60

16.12

8.60

242.93

341.88

389.06

318.27

258.33

327.69

342.26

119.56

145.92

At employer and school cafeterias

At vending machines, mobile vendors At employer and school cafeterias Restaurant and carry-out food on trips

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

28 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 17. Restaurants and Carry-Outs: Indexed spending by household type, 2006 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by type of consumer unit, 2006; 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 $48,398

total married couples $62,503

married couples, no children $55,631

Average spending of CU, index

100

129

RESTAURANTS AND CARRY-OUTS

100

Lunch

100

At fast-food restaurants*

married couples with children total $68,354

oldest child under 6 $63,416

oldest child 6 to 17 $69,157

oldest child 18 or older $70,234

single parent, at least one child <18 $35,491

single person $29,374

115

141

131

143

145

73

61

129

117

140

120

149

137

73

59

128

101

152

129

165

141

76

58

100

124

93

148

152

154

135

85

58

At full-service restaurants

100

132

129

137

108

142

146

37

65

At vending machines, mobile vendors

100

112

111

113

77

116

129

58

51

At employer and school cafeterias

100

137

39

225

111

298

154

176

32

Dinner

100

129

122

136

120

143

132

75

58

At fast-food restaurants*

100

126

89

157

149

167

144

117

46

At full-service restaurants

100

130

138

126

106

133

126

55

63

At vending machines, mobile vendors

100

110

77

130

77

151

123

52

77

At employer and school cafeterias

100

102

77

104

174

65

136

68

98

Snacks and nonalcoholic beverages

100

123

93

152

132

161

148

88

58

At fast-food restaurants*

100

127

92

158

137

171

143

82

54

At full-service restaurants

100

121

105

140

108

125

192

64

63

At vending machines, mobile vendors

100

115

81

146

132

160

128

126

61

At employer and school cafeterias

100

116

97

145

142

159

120

101

71

Breakfast and brunch

100

121

115

125

98

129

135

70

64

At fast-food restaurants*

100

119

93

138

121

137

153

91

62

At full-service restaurants

100

125

143

110

69

119

118

42

64

At vending machines, mobile vendors

100

99

99

93

61

118

65

61

87

At employer and school cafeterias

100

113

65

160

170

159

153

140

75

Restaurant and carry-out food on trips

100

141

160

131

106

135

141

49

60

Average spending of CU, total

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 29

Table 18. Restaurants and Carry-Outs: Total spending by household type, 2006 (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 consumer units

total married couples

married couples, no children

118,843

59,428

25,306

married couples with children total

oldest child under 6

oldest child 6 to 17

oldest child 18 or older

29,381

5,763

15,166

8,452

$5,751,801,544 $3,714,438,981 $1,407,807,702 $2,008,316,219 $365,463,757 $1,048,842,190 $593,617,430

single parent, at least one child <18

single person

7,225

35,221

$256,422,114 $1,034,593,981

296,193,597

190,448,317

73,689,048

102,872,577

17,265,602

56,323,036

28,862,481

13,146,971

51,373,703

Lunch

91,345,107

58,540,740

19,729,570

34,329,054

5,712,631

19,235,493

9,176,928

4,211,814

15,591,632

At fast-food restaurants*

43,979,041

27,232,881

8,752,839

16,135,164

3,233,619

8,634,155

4,230,564

2,266,555

7,513,344

At full-service restaurants

35,782,439

23,531,111

9,816,197

12,127,302

1,877,931

6,506,062

3,704,934

800,675

6,902,964

1,344,114

755,924

319,109

374,314

49,908

199,585

123,568

47,757

202,521

10,238,324

7,020,230

841,425

5,692,275

551,231

3,895,539

1,117,862

1,096,827

972,804

127,482,886

82,004,697

33,216,909

42,808,998

7,416,981

23,284,056

11,945,634

5,786,358

21,873,298

At fast-food restaurants*

40,157,050

25,221,243

7,652,028

15,621,290

2,905,762

8,539,671

4,114,265

2,844,772

5,469,469

At full-service restaurants

86,110,073

56,151,140

25,365,216

26,851,296

4,425,926

14,603,341

7,716,930

2,894,769

16,073,456

RESTAURANTS AND CARRY-OUTS

At vending machines, mobile vendors At employer and school cafeterias Dinner

At vending machines, mobile vendors

369,602

203,244

60,734

118,699

13,831

71,129

32,456

11,705

84,178

At employer and school cafeterias

844,974

429,070

138,930

217,713

71,404

70,067

81,984

35,114

246,547

Snacks and nonalcoholic beverages

20,753,553

12,799,603

4,095,017

7,801,831

1,324,453

4,263,618

2,181,292

1,105,642

3,538,654

At fast-food restaurants*

12,769,680

8,104,196

2,511,114

4,973,616

850,446

2,794,336

1,298,650

639,918

2,056,202

At full-service restaurants

3,541,521

2,142,974

792,078

1,224,600

184,992

564,479

482,440

137,636

660,746

At vending machines, mobile vendors

3,631,842

2,081,169

624,299

1,313,037

233,286

740,252

331,403

278,163

652,293

810,509

471,264

167,526

290,872

55,671

164,551

68,884

49,925

169,413

Breakfast and brunch

27,741,521

16,786,033

6,802,000

8,581,602

1,322,781

4,570,122

2,665,845

1,179,337

5,230,671

At fast-food restaurants*

12,857,624

7,643,629

2,537,686

4,400,686

756,278

2,247,601

1,398,214

714,047

2,349,945

At full-service restaurants

13,069,165

8,150,550

3,980,887

3,538,060

440,178

1,977,040

1,098,084

332,133

2,462,652

446,850

221,072

94,391

102,834

13,313

67,034

20,707

16,690

115,525

1,369,071

770,187

189,036

540,023

112,955

278,448

148,755

116,467

302,901

28,870,530

20,317,245

9,845,552

9,351,091

1,488,756

4,969,747

2,892,782

863,821

5,139,448

At employer and school cafeterias

At vending machines, mobile vendors At employer and school cafeterias Restaurant and carry-out food on trips

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers will not add to total because not all types of consumer units are shown. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

30 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 19. Restaurants and Carry-Outs: Market shares by household type, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by types of consumer units, 2006)

Share of total consumer units

total consumer units 100.0%

total married couples 50.0%

married couples, no children 21.3%

married couples with children total 24.7%

oldest child under 6 4.8%

oldest child oldest child 6 to 17 18 or older 12.8% 7.1%

single parent, at least one child <18 6.1%

single person 29.6%

Share of total before-tax income

100.0

67.9

25.7

36.5

6.5

18.9

11.0

3.5

15.5

Share of total spending

100.0

64.6

24.5

34.9

6.4

18.2

10.3

4.5

18.0

RESTAURANTS AND CARRY-OUTS

100.0

64.3

24.9

34.7

5.8

19.0

9.7

4.4

17.3

Lunch

100.0

64.1

21.6

37.6

6.3

21.1

10.0

4.6

17.1

At fast-food restaurants*

100.0

61.9

19.9

36.7

7.4

19.6

9.6

5.2

17.1

At full-service restaurants

100.0

65.8

27.4

33.9

5.2

18.2

10.4

2.2

19.3

At vending machines, mobile vendors

100.0

56.2

23.7

27.8

3.7

14.8

9.2

3.6

15.1

At employer and school cafeterias

100.0

68.6

8.2

55.6

5.4

38.0

10.9

10.7

9.5

Dinner

100.0

64.3

26.1

33.6

5.8

18.3

9.4

4.5

17.2

At fast-food restaurants*

100.0

62.8

19.1

38.9

7.2

21.3

10.2

7.1

13.6

At full-service restaurants

100.0

65.2

29.5

31.2

5.1

17.0

9.0

3.4

18.7

At vending machines, mobile vendors

100.0

55.0

16.4

32.1

3.7

19.2

8.8

3.2

22.8

At employer and school cafeterias

100.0

50.8

16.4

25.8

8.5

8.3

9.7

4.2

29.2

Snacks and nonalcoholic beverages

100.0

61.7

19.7

37.6

6.4

20.5

10.5

5.3

17.1

At fast-food restaurants*

100.0

63.5

19.7

38.9

6.7

21.9

10.2

5.0

16.1

At full-service restaurants

100.0

60.5

22.4

34.6

5.2

15.9

13.6

3.9

18.7

At vending machines, mobile vendors

100.0

57.3

17.2

36.2

6.4

20.4

9.1

7.7

18.0

At employer and school cafeterias

100.0

58.1

20.7

35.9

6.9

20.3

8.5

6.2

20.9

Breakfast and brunch

100.0

60.5

24.5

30.9

4.8

16.5

9.6

4.3

18.9

At fast-food restaurants*

100.0

59.4

19.7

34.2

5.9

17.5

10.9

5.6

18.3

At full-service restaurants

100.0

62.4

30.5

27.1

3.4

15.1

8.4

2.5

18.8

At vending machines, mobile vendors

100.0

49.5

21.1

23.0

3.0

15.0

4.6

3.7

25.9

At employer and school cafeterias

100.0

56.3

13.8

39.4

8.3

20.3

10.9

8.5

22.1

Restaurant and carry-out food on trips

100.0

70.4

34.1

32.4

5.2

17.2

10.0

3.0

17.8

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Market shares by type of consumer unit will not add to total because not all types of consumer units are shown. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 31

Table 20. Restaurants and Carry-Outs: Average spending by race and Hispanic origin, 2006 (average annual spending of consumer units on restaurant and carry-out food, by race and Hispanic origin of consumer unit reference person, 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32

Asian 4,098 2.7 $75,865.00 57,544.40

black 14,265 2.6 $41,142.00 34,583.43

Hispanic 13,664 3.2 $48,108.00 43,053.47

non-Hispanic white and other 91,049 2.3 $65,417.00 51,350.56

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

3,201.51 1,119.51 474.55 494.69 4.34 145.93

1,638.86 528.36 331.68 121.48 7.82 67.38

2,279.54 791.58 452.94 242.49 33.44 62.71

2,657.71 803.27 363.75 338.46 8.47 92.58

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

1,356.56 403.31 923.83 0.45 –

742.00 343.02 394.08 3.26 1.64

890.39 361.52 512.88 9.82 6.16

1,151.63 333.07 808.17 2.28 8.11

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

180.72 107.20 28.61 31.49 13.41

127.50 71.31 20.83 31.03 4.33

167.86 94.74 30.17 37.66 5.29

183.08 115.00 31.12 29.52 7.44

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

251.69 119.42 102.63 3.15 26.50

167.17 99.63 55.47 2.45 9.62

280.89 148.57 110.35 8.60 13.37

236.44 103.28 118.43 3.22 11.51

Restaurant and carry-out food on trips

242.93

293.03

73.83

148.82

283.29

Number of consumer units (in 000s) Number of persons per consumer unit Average before-tax income of consumer units Average spending of consumer units, total RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other”includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian column), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. “–” means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

32 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 21. Restaurants and Carry-Outs: Indexed spending by race and Hispanic origin, 2006 (indexed average annual spending of consumer units on restaurant and carry-out food, by race and Hispanic origin of consumer unit reference person, 2006; 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 $48,398 100

Asian $57,544 119

black $34,583 71

Hispanic $43,053 89

non-Hispanic white and other $51,351 106

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

128 146 128 164 38 169

66 69 90 40 69 78

91 103 122 81 296 73

107 105 98 112 75 107

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

126 119 128 14 –

69 102 54 105 23

83 107 71 316 87

107 99 112 73 114

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

103 100 96 103 197

73 66 70 102 63

96 88 101 123 78

105 107 104 97 109

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

108 110 93 84 230

72 92 50 65 84

120 137 100 229 116

101 95 108 86 100

Restaurant and carry-out food on trips

100

121

30

61

117

Average spending of consumer units, total Average spending of consumer units, index RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other”includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian column), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 33

Table 22. Restaurants and Carry-Outs: Total spending by race and Hispanic origin, 2006 (total annual spending on restaurant and carry-out food, by consumer unit race and Hispanic origin groups, 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544

Asian 4,098 $235,816,951

black 14,265 $493,332,629

Hispanic 13,664 $588,282,614

non-Hispanic white and other 91,049 $4,675,417,137

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

296,193,597 91,345,107 43,979,041 35,782,439 1,344,114 10,238,324

13,119,788 4,587,752 1,944,706 2,027,240 17,785 598,021

23,378,338 7,537,055 4,731,415 1,732,912 111,552 961,176

31,147,635 10,816,149 6,188,972 3,313,383 456,924 856,869

241,981,838 73,136,930 33,119,074 30,816,445 771,185 8,429,316

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

127,482,886 40,157,050 86,110,073 369,602 844,974

5,559,183 1,652,764 3,785,855 1,844 –

10,584,630 4,893,180 5,621,551 46,504 23,395

12,166,289 4,939,809 7,007,992 134,180 84,170

104,854,760 30,325,690 73,583,070 207,592 738,407

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

20,753,553 12,769,680 3,541,521 3,631,842 810,509

740,591 439,306 117,244 129,046 54,954

1,818,788 1,017,237 297,140 442,643 61,767

2,293,639 1,294,527 412,243 514,586 72,283

16,669,251 10,470,635 2,833,445 2,687,766 677,405

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

27,741,521 12,857,624 13,069,165 446,850 1,369,071

1,031,426 489,383 420,578 12,909 108,597

2,384,680 1,421,222 791,280 34,949 137,229

3,838,081 2,030,060 1,507,822 117,510 182,688

21,527,626 9,403,541 10,782,933 293,178 1,047,974

Restaurant and carry-out food on trips

28,870,530

1,200,837

1,053,185

2,033,476

25,793,271

Number of consumer units Total spending of all consumer units RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other”includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian column), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. 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 Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

34 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 23. Restaurants and Carry-Outs: Market shares by race and Hispanic origin, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer unit race and Hispanic origin groups, 2006)

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

total consumer units 100.0% 100.0 100.0

Asian 3.4% 4.3 4.1

black 12.0% 8.2 8.6

Hispanic 11.5% 9.1 10.2

non-Hispanic white and other 76.6% 82.8 81.3

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

4.4 5.0 4.4 5.7 1.3 5.8

7.9 8.3 10.8 4.8 8.3 9.4

10.5 11.8 14.1 9.3 34.0 8.4

81.7 80.1 75.3 86.1 57.4 82.3

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

4.4 4.1 4.4 0.5 –

8.3 12.2 6.5 12.6 2.8

9.5 12.3 8.1 36.3 10.0

82.3 75.5 85.5 56.2 87.4

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

3.6 3.4 3.3 3.6 6.8

8.8 8.0 8.4 12.2 7.6

11.1 10.1 11.6 14.2 8.9

80.3 82.0 80.0 74.0 83.6

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

3.7 3.8 3.2 2.9 7.9

8.6 11.1 6.1 7.8 10.0

13.8 15.8 11.5 26.3 13.3

77.6 73.1 82.5 65.6 76.5

Restaurant and carry-out food on trips

100.0

4.2

3.6

7.0

89.3

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian column), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the 2002 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 35

Table 24. Restaurants and Carry-Outs: Average spending by region, 2006 (average annual spending of consumer units on restaurant and carry-out food, by region in which consumer unit lives, 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32

Northeast 22,757 2.4 $64,232.00 49,164.09

Midwest 27,206 2.4 $57,980.00 45,084.61

South 42,457 2.5 $56,190.00 44,501.24

West 26,423 2.6 $66,955.00 57,485.71

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

2,489.18 723.89 350.21 265.61 7.03 101.03

2,289.35 694.03 316.36 266.26 9.06 102.34

2,356.04 781.12 384.66 304.92 12.18 79.36

2,938.28 867.73 421.23 363.53 16.07 66.90

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

1,073.88 304.46 760.56 1.44 7.42

997.91 331.82 654.13 3.71 8.25

1,032.34 330.87 693.32 2.78 5.37

1,220.06 385.57 821.46 4.50 8.53

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

179.68 111.49 34.60 26.56 7.02

161.17 93.76 25.54 33.66 8.22

144.47 86.97 19.74 33.27 4.48

235.17 152.91 47.00 26.20 9.06

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

275.61 143.31 113.94 4.03 14.34

211.36 78.02 116.90 3.76 12.68

203.60 105.34 83.56 3.39 11.31

270.14 114.78 143.10 4.12 8.13

Restaurant and carry-out food on trips

242.93

236.12

224.88

194.51

345.18

Number of consumer units (in 000s) Number of persons per consumer unit Average before-tax income of consumer units Average spending of consumer units, total RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

36 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 25. Restaurants and Carry-Outs: Indexed spending by region, 2006 (indexed average annual spending of consumer units on restaurant and carry-out food, by region in which consumer unit lives, 2006; 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 $48,398 100

Northeast $49,164 102

Midwest $45,085 93

South $44,501 92

West $57,486 119

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

100 94 95 88 62 117

92 90 85 88 80 119

95 102 104 101 108 92

118 113 114 121 142 78

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

100 90 105 46 104

93 98 90 119 116

96 98 96 89 76

114 114 113 145 120

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

103 104 116 87 103

92 87 86 110 121

83 81 66 109 66

135 142 158 86 133

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

118 132 104 107 124

91 72 106 100 110

87 97 76 90 98

116 106 130 110 71

Restaurant and carry-out food on trips

100

97

93

80

142

Average spending of consumer units, total Average spending of consumer units, index RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 37

Table 26. Restaurants and Carry-Outs: Total spending by region, 2006 (total annual spending on restaurant and carry-out food, by region in which consumer unit lives, 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544

Northeast 22,757 $1,118,827,196

Midwest 27,206 $1,226,571,900

South 42,457 $1,889,389,147

West 26,423 $1,518,944,915

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

296,193,597 91,345,107 43,979,041 35,782,439 1,344,114 10,238,324

56,646,269 16,473,565 7,969,729 6,044,487 159,982 2,299,140

62,284,056 18,881,780 8,606,890 7,243,870 246,486 2,784,262

100,030,390 33,164,012 16,331,510 12,945,988 517,126 3,369,388

77,638,172 22,928,030 11,130,160 9,605,553 424,618 1,767,699

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

127,482,886 40,157,050 86,110,073 369,602 844,974

24,438,287 6,928,596 17,308,064 32,770 168,857

27,149,139 9,027,495 17,796,261 100,934 224,450

43,830,059 14,047,748 29,436,287 118,030 227,994

32,237,645 10,187,916 21,705,438 118,904 225,388

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

20,753,553 12,769,680 3,541,521 3,631,842 810,509

4,088,978 2,537,178 787,392 604,426 159,754

4,384,791 2,550,835 694,841 915,754 223,633

6,133,763 3,692,485 838,101 1,412,544 190,207

6,213,897 4,040,341 1,241,881 692,283 239,392

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

27,741,521 12,857,624 13,069,165 446,850 1,369,071

6,272,057 3,261,306 2,592,933 91,711 326,335

5,750,260 2,122,612 3,180,381 102,295 344,972

8,644,245 4,472,420 3,547,707 143,929 480,189

7,137,909 3,032,832 3,781,131 108,863 214,819

Restaurant and carry-out food on trips

28,870,530

5,373,383

6,118,085

8,258,311

9,120,691

Number of consumer units Total spending of all consumer units RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

38 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 27. Restaurants and Carry-Outs: Market shares by region, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by consumer units by region of residence, 2006)

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 19.1% 20.3 19.5

Midwest 22.9% 21.9 21.3

South 35.7% 33.2 32.8

West 22.2% 24.6 26.4

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

19.1 18.0 18.1 16.9 11.9 22.5

21.0 20.7 19.6 20.2 18.3 27.2

33.8 36.3 37.1 36.2 38.5 32.9

26.2 25.1 25.3 26.8 31.6 17.3

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

19.2 17.3 20.1 8.9 20.0

21.3 22.5 20.7 27.3 26.6

34.4 35.0 34.2 31.9 27.0

25.3 25.4 25.2 32.2 26.7

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

19.7 19.9 22.2 16.6 19.7

21.1 20.0 19.6 25.2 27.6

29.6 28.9 23.7 38.9 23.5

29.9 31.6 35.1 19.1 29.5

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

22.6 25.4 19.8 20.5 23.8

20.7 16.5 24.3 22.9 25.2

31.2 34.8 27.1 32.2 35.1

25.7 23.6 28.9 24.4 15.7

Restaurant and carry-out food on trips

100.0

18.6

21.2

28.6

31.6

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 39

Table 28. Restaurants and Carry-Outs: Average spending by education, 2006 (average annual spending of consumer units (CU) on restaurant and carry-out food, by education of consumer unit reference person, 2006) college graduate total consumer units Number of consumer units (in 000s) 118,843 Number of persons per CU 2.5 Average before-tax income of CU $60,533.00 Average spending of CU, total 48,398.32

less than high school graduate 17,747 2.6 $31,775.00 28,760.01

high school graduate 31,134 2.5 $45,962.00 39,304.72

some college 25,135 2.4 $53,809.00 45,891.39

associate’s degree 11,582 2.5 $67,353.00 52,272.22

total 33,244 2.4 $92,241.00 67,835.51

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

2,492.31 768.62 370.06 301.09 11.31 86.15

1,449.36 463.69 262.43 146.21 13.95 41.10

2,018.36 634.95 327.68 225.72 17.35 64.21

2,479.41 780.06 396.91 287.85 7.95 87.35

2,736.60 852.71 397.28 323.81 10.68 120.94

3,387.16 1,008.31 434.95 450.21 7.07 116.08

3,305.22 980.37 443.58 416.13 6.94 113.72

3,534.15 1,058.73 419.37 511.70 7.32 120.34

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

1,072.70 337.90 724.57 3.11 7.11

629.77 243.64 375.49 6.22 4.42

877.82 315.53 554.94 2.57 4.78

1,038.84 353.70 670.63 3.72 10.80

1,154.50 421.77 718.89 2.68 11.15

1,471.53 365.72 1,097.49 1.75 6.58

1,462.54 380.54 1,073.70 1.92 6.38

1,487.76 338.96 1,140.42 1.45 6.93

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

174.63 107.45 29.80 30.56 6.82

109.20 68.62 14.57 22.98 3.03

136.72 77.84 23.94 29.10 5.84

186.94 109.81 31.44 37.31 8.38

185.93 115.23 26.61 36.26 7.83

229.86 149.84 42.86 28.96 8.19

230.52 143.79 44.72 31.61 10.41

228.66 160.77 39.52 24.17 4.20

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

233.43 108.19 109.97 3.76 11.52

178.31 86.57 79.71 4.76 7.26

218.25 97.03 109.66 4.57 6.99

253.05 115.77 117.72 4.04 15.51

275.96 127.38 131.51 3.13 13.93

246.51 117.26 112.60 2.52 14.13

232.55 114.11 100.72 3.17 14.55

271.68 122.93 134.04 1.33 13.37

Restaurant and carry-out food on trips 242.93

68.39

150.62

220.52

267.50

430.95

399.24

487.32

RESTAURANTS AND CARRY-OUTS

master’s, bachelor’s professional, degree doctorate 21,277 11,967 2.4 2.4 $82,860.00 $108,918.00 63,863.98 74,905.99

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey

40 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 29. Restaurants and Carry-Outs: Indexed spending by education, 2006 (indexed average annual spending of consumer units (CU) on restaurant and carry-out food, by education of consumer unit reference person, 2006; 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

$48,398 100

$28,760 59

$39,305 81

$45,891 95

$52,272 108

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100 100

58 60 71 49 123 48

81 83 89 75 153 75

99 101 107 96 70 101

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

59 72 52 200 62

82 93 77 83 67

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

63 64 49 75 44

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100 100 100 100 100

Restaurant and carry-out food on trips

100

Average spending of CU, total Average spending of CU, index RESTAURANTS AND CARRY-OUTS

total

bachelor’s degree

master’s, professional, doctorate

$67,836 140

$63,864 132

$74,906 155

110 111 107 108 94 140

136 131 118 150 63 135

133 128 120 138 61 132

142 138 113 170 65 140

97 105 93 120 152

108 125 99 86 157

137 108 151 56 93

136 113 148 62 90

139 100 157 47 97

78 72 80 95 86

107 102 106 122 123

106 107 89 119 115

132 139 144 95 120

132 134 150 103 153

131 150 133 79 62

76 80 72 127 63

93 90 100 122 61

108 107 107 107 135

118 118 120 83 121

106 108 102 67 123

100 105 92 84 126

116 114 122 35 116

28

62

91

110

177

164

201

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 41

Table 30. Restaurants and Carry-Outs: Total spending by education, 2006 (total annual spending on restaurant and carry-out food, by education of consumer unit (CU) reference person, 2006; consumer units and dollars in thousands) college graduate

Number of consumer units Total spending of all CUs

total consumer units

less than high school graduate

high school graduate

some college

associate’s degree

118,843

17,747

31,134

25,135

11,582

$5,751,801,544

$510,403,897 $1,223,713,152 $1,153,480,088

total

bachelor’s degree

master’s, professional, doctorate

33,244

21,277

11,967

$605,416,852 $2,255,123,694 $1,358,833,902 $896,399,982

296,193,597

25,721,792

62,839,620

62,319,970

31,695,301

112,602,747

70,325,166

42,293,173

Lunch

91,345,107

8,229,106

19,768,533

19,606,808

9,876,087

33,520,258

20,859,332

12,669,822

At fast-food restaurants*

43,979,041

4,657,345

10,201,989

9,976,333

4,601,297

14,459,478

9,438,052

5,018,601

At full-service restaurants

35,782,439

2,594,789

7,027,566

7,235,110

3,750,367

14,966,781

8,853,998

6,123,514

1,344,114

247,571

540,175

199,823

123,696

235,035

147,662

87,598

10,238,324

729,402

1,999,114

2,195,542

1,400,727

3,858,964

2,419,620

1,440,109 17,804,024

RESTAURANTS AND CARRY-OUTS

At vending machines, mobile vendors At employer and school cafeterias Dinner

127,482,886

11,176,528

27,330,048

26,111,243

13,371,419

48,919,543

31,118,464

At fast-food restaurants*

40,157,050

4,323,879

9,823,711

8,890,250

4,884,940

12,157,996

8,096,750

4,056,334

At full-service restaurants

86,110,073

6,663,821

17,277,502

16,856,285

8,326,184

36,484,958

22,845,115

13,647,406

At vending machines, mobile vendors

369,602

110,386

80,014

93,502

31,040

58,177

40,852

17,352

At employer and school cafeterias

844,974

78,442

148,821

271,458

129,139

218,746

135,747

82,931

Snacks and nonalcoholic beverages

20,753,553

1,937,972

4,256,640

4,698,737

2,153,441

7,641,466

4,904,774

2,736,374

At fast-food restaurants*

12,769,680

1,217,799

2,423,471

2,760,074

1,334,594

4,981,281

3,059,420

1,923,935

At full-service restaurants

3,541,521

258,574

745,348

790,244

308,197

1,424,838

951,507

472,936

At vending machines, mobile vendors

3,631,842

407,826

905,999

937,787

419,963

962,746

672,566

289,242

810,509

53,773

181,823

210,631

90,687

272,268

221,494

50,261

Breakfast and brunch

27,741,521

3,164,468

6,794,996

6,360,412

3,196,169

8,194,978

4,947,966

3,251,195

At fast-food restaurants*

12,857,624

1,536,358

3,020,932

2,909,879

1,475,315

3,898,191

2,427,918

1,471,103

At full-service restaurants

13,069,165

1,414,613

3,414,154

2,958,892

1,523,149

3,743,274

2,143,019

1,604,057

446,850

84,476

142,282

101,545

36,252

83,775

67,448

15,916

1,369,071

128,843

217,627

389,844

161,337

469,738

309,580

159,999

28,870,530

1,213,717

4,689,403

5,542,770

3,098,185

14,326,502

8,494,629

5,831,758

At employer and school cafeterias

At vending machines, mobile vendors At employer and school cafeterias Restaurant, carry-out food on trips

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

42 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Table 31. Restaurants and Carry-Outs: Market shares by education, 2006 (percentage of total annual spending on restaurant and carry-out food accounted for by education of consumer unit reference person, 2006) college graduate

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

total consumer units 100.0% 100.0 100.0

less than high school graduate 14.9% 7.8 8.9

high school graduate 26.2% 19.9 21.3

some college 21.1% 18.8 20.1

associate’s degree 9.7% 10.8 10.5

total 28.0% 42.6 39.2

bachelor’s degree 17.9% 24.5 23.6

master’s, professional, doctorate 10.1% 18.1 15.6

Lunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0 100.0

8.7 9.0 10.6 7.3 18.4 7.1

21.2 21.6 23.2 19.6 40.2 19.5

21.0 21.5 22.7 20.2 14.9 21.4

10.7 10.8 10.5 10.5 9.2 13.7

38.0 36.7 32.9 41.8 17.5 37.7

23.7 22.8 21.5 24.7 11.0 23.6

14.3 13.9 11.4 17.1 6.5 14.1

Dinner At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

8.8 10.8 7.7 29.9 9.3

21.4 24.5 20.1 21.6 17.6

20.5 22.1 19.6 25.3 32.1

10.5 12.2 9.7 8.4 15.3

38.4 30.3 42.4 15.7 25.9

24.4 20.2 26.5 11.1 16.1

14.0 10.1 15.8 4.7 9.8

Snacks and nonalcoholic beverages At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

9.3 9.5 7.3 11.2 6.6

20.5 19.0 21.0 24.9 22.4

22.6 21.6 22.3 25.8 26.0

10.4 10.5 8.7 11.6 11.2

36.8 39.0 40.2 26.5 33.6

23.6 24.0 26.9 18.5 27.3

13.2 15.1 13.4 8.0 6.2

Breakfast and brunch At fast-food restaurants* At full-service restaurants At vending machines, mobile vendors At employer and school cafeterias

100.0 100.0 100.0 100.0 100.0

11.4 11.9 10.8 18.9 9.4

24.5 23.5 26.1 31.8 15.9

22.9 22.6 22.6 22.7 28.5

11.5 11.5 11.7 8.1 11.8

29.5 30.3 28.6 18.7 34.3

17.8 18.9 16.4 15.1 22.6

11.7 11.4 12.3 3.6 11.7

Restaurant and carry-out food on trips

100.0

4.2

16.2

19.2

10.7

49.6

29.4

20.2

RESTAURANTS AND CARRY-OUTS

* The category “fast-food restaurants” also includes take-out, delivery, concession stands, buffets, and cafeterias other than employer and school. Note: Numbers may not add to total because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 43

Breakfast and Brunch at Fast-Food Restaurants (Including Take-Outs, Deliveries, Concession Stands, Buffets, and Cafeterias Other than Employer and School) Best customers:

Householders aged 25 to 54 Married couples with school-aged or older children at home Hispanics Households in the Northeast

Customer trends:

Spending in this category may slow as baby boomers become 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 26 to 32 percent more than average on this item and account for 74 percent of the market. Married couples with school-aged or older children at home spend 37 to 53 percent more than average on breakfast at fast-food restaurants as they try to ﬁt meals into their busy schedules. Hispanics spend 37 percent more than average on breakfast at fast-food restaurants, while households in the Northeast spend 32 percent more. As the large baby-boom generation becomes empty-nesters with more free time, breakfast spending may shift from fast food to full service.

Table 32.

Breakfast and brunch at fast-food restaurants (including take-outs, deliveries, concession stands, buffets, and cafeterias other than 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

44 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$12,857,624,170.00 108.19 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$108.19 76.86 142.74 138.20 136.04 83.62 67.04 29.95

100 71 132 128 126 77 62 28

BIGGEST CUSTOMERS (market share)

100.0% 4.9 22.3 25.7 26.1 12.3 6.1 2.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$108.19 47.79 87.64 99.23 137.29 122.27 160.53 154.87

100 44 81 92 127 113 148 143

100.0% 9.7 18.8 8.8 18.9 6.6 12.8 22.8

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

108.19 128.62 100.28 149.78 131.23 148.20 165.43 98.83 66.72

100 119 93 138 121 137 153 91 62

100.0 59.4 19.7 34.2 5.9 17.5 10.9 5.6 18.3

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

108.19 119.42 99.63 148.57 103.28

100 110 92 137 95

100.0 3.8 11.1 15.8 73.1

REGION Average household Northeast Midwest South West

108.19 143.31 78.02 105.34 114.78

100 132 72 97 106

100.0 25.4 16.5 34.8 23.6

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

108.19 86.57 97.03 115.77 127.38 117.26 114.11 122.93

100 80 90 107 118 108 105 114

100.0 11.9 23.5 22.6 11.5 30.3 18.9 11.4

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 45

Breakfast and Brunch at Full-Service Restaurants Best customers:

Householders aged 55 to 74 Married couples without children at home

Customer trends:

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

The biggest spenders on breakfast and brunch at full-service restaurants are almost 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. Householders aged 55 to 74 spend 21 to 24 percent more than average on this item. Married couples without children at home (many of them empty-nesters) spend 43 percent more than average on breakfast and brunch at full-service restaurants. 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 and brunch 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

46 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$13,069,164,710.00 109.97 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$109.97 61.43 99.88 103.56 108.69 136.79 133.28 109.33

100 56 91 94 99 124 121 99

BIGGEST CUSTOMERS (market share)

100.0% 3.8 15.3 19.0 20.5 19.8 12.0 9.4

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$109.97 52.38 82.97 108.88 141.50 96.11 157.53 169.77

100 48 75 99 129 87 143 154

100.0% 10.4 17.5 9.5 19.1 5.1 12.3 24.6

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

109.97 137.15 157.31 120.42 76.38 130.36 129.92 45.97 69.92

100 125 143 110 69 119 118 42 64

100.0 62.4 30.5 27.1 3.4 15.1 8.4 2.5 18.8

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

109.97 102.63 55.47 110.35 118.43

100 93 50 100 108

100.0 3.2 6.1 11.5 82.5

REGION Average household Northeast Midwest South West

109.97 113.94 116.90 83.56 143.10

100 104 106 76 130

100.0 19.8 24.3 27.1 28.9

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

109.97 79.71 109.66 117.72 131.51 112.60 100.72 134.04

100 72 100 107 120 102 92 122

100.0 10.8 26.1 22.6 11.7 28.6 16.4 12.3

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 47

Dinner at Fast-Food Restaurants (Including Take-Outs, Deliveries, Concession Stands, Buffets, and Cafeterias Other than Employer and School) Best customers:

Householders aged 25 to 44 Married couples with children at home Single parents

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 44 spend 31 to 33 percent more than average on this item and account for almost half of the market. Married couples with children at home spend 57 percent more than average on dinner at fast-food restaurants as they try to ﬁt meals into their busy schedules. Single parents spend 17 percent more than average on this item. As boomers become empty-nesters and children’s meal preferences no longer guide restaurant choices, average household spending on fast-food restaurant dinners may decline.

Table 34. Dinner at fast-food restaurants (including take-outs, deliveries, concession stands, buffets, and cafeterias other than 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

48 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$40,157,049,700.00 337.90 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$337.90 363.10 448.74 443.13 392.37 258.50 185.38 76.50

100 107 133 131 116 77 55 23

BIGGEST CUSTOMERS (market share)

100.0% 7.4 22.4 26.4 24.1 12.2 5.4 2.1

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$337.90 154.82 258.85 336.99 386.16 397.28 482.20 525.84

100 46 77 100 114 118 143 156

100.0% 10.1 17.7 9.6 17.0 6.9 12.3 24.8

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

337.90 424.40 302.38 531.68 504.21 563.08 486.78 393.74 155.29

100 126 89 157 149 167 144 117 46

100.0 62.8 19.1 38.9 7.2 21.3 10.2 7.1 13.6

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

337.90 403.31 343.02 361.52 333.07

100 119 102 107 99

100.0 4.1 12.2 12.3 75.5

REGION Average household Northeast Midwest South West

337.90 304.46 331.82 330.87 385.57

100 90 98 98 114

100.0 17.3 22.5 35.0 25.4

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

337.90 243.64 315.53 353.70 421.77 365.72 380.54 338.96

100 72 93 105 125 108 113 100

100.0 10.8 24.5 22.1 12.2 30.3 20.2 10.1

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 49

Dinner at Full-Service Restaurants Best customers:

Householders aged 45 to 54 Married couples without children at home Married couples with school-aged or older children at home 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 54 spend 23 percent more than average on this item. Married couples without children at home (many of them empty-nesters) spend 38 percent more than average on full-service restaurant dinners. Those with school-aged or adult children at home spend 26 to 33 percent more than average on this item. Asians spend 28 percent more than the average household on dinners at full-service restaurants. Look for a shift in restaurant spending toward full-service establishments as baby boomers become empty-nesters with more free time.

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

50 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$86,110,072,510.00 724.57 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$724.57 462.44 743.77 774.76 890.29 772.45 639.69 424.22

100 64 103 107 123 107 88 59

BIGGEST CUSTOMERS (market share)

100.0% 4.4 17.3 21.5 25.5 17.0 8.7 5.5

HOUSEHOLD INCOME Average household 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

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$724.57 264.79 402.73 618.50 731.95 824.47 1,096.93 1,552.88

100 37 56 85 101 114 151 214

100.0% 8.0 12.9 8.2 15.0 6.7 13.0 34.1

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

724.57 944.86 1,002.34 913.90 767.99 962.90 913.03 400.66 456.36

100 130 138 126 106 133 126 55 63

100.0 65.2 29.5 31.2 5.1 17.0 9.0 3.4 18.7

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

724.57 923.83 394.08 512.88 808.17

100 128 54 71 112

100.0 4.4 6.5 8.1 85.5

REGION Average household Northeast Midwest South West

724.57 760.56 654.13 693.32 821.46

100 105 90 96 113

100.0 20.1 20.7 34.2 25.2

724.57 375.49 554.94 670.63 718.89 1,097.49 1,073.70 1,140.42

100 52 77 93 99 151 148 157

100.0 7.7 20.1 19.6 9.7 42.4 26.5 15.8

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

BIGGEST CUSTOMERS (market share)

Note: Market shares may not sum to 100.0 because of rounding and missing categories by household type. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 51

Lunch at Employer and School Cafeterias Best customers:

Householders aged 35 to 54 Married couples with school-aged or older children at home Single parents Asians

Customer trends:

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

Not surprisingly, parents and workers are the biggest spenders on lunch at employer and school cafeterias. Householders aged 35 to 54, most of them in the workforce, spend 33 to 83 percent more than average on this item and account for 65 percent of the market. Married couples with schoolaged children, many of them dual-income couples, spend almost triple the average on this item. Couples with adult children at home spend 54 percent more than average on employer and school cafeteria lunches, while single parents spend 76 more. Asians spend 69 percent more than the average on this item. Average household spending on this category may decline in the future 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

52 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$10,238,324,450.00 86.15 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$86.15 36.70 99.55 158.05 114.34 45.35 30.78 11.26

100 43 116 183 133 53 36 13

BIGGEST CUSTOMERS (market share)

100.0% 2.9 19.5 37.0 27.6 8.4 3.5 1.2

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$86.15 21.85 44.28 62.49 101.97 103.43 153.67 179.17

100 25 51 73 118 120 178 208

100.0% 5.6 11.9 7.0 17.6 7.0 15.4 33.1

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

86.15 118.13 33.25 193.74 95.65 256.86 132.26 151.81 27.62

100 137 39 225 111 298 154 176 32

100.0 68.6 8.2 55.6 5.4 38.0 10.9 10.7 9.5

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

86.15 145.93 67.38 62.71 92.58

100 169 78 73 107

100.0 5.8 9.4 8.4 82.3

REGION Average household Northeast Midwest South West

86.15 101.03 102.34 79.36 66.90

100 117 119 92 78

100.0 22.5 27.2 32.9 17.3

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

86.15 41.10 64.21 87.35 120.94 116.08 113.72 120.34

100 48 75 101 140 135 132 140

100.0 7.1 19.5 21.4 13.7 37.7 23.6 14.1

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 53

Lunch at Fast-Food Restaurants (including Take-Outs, Deliveries, Concession Stands, Buffets, and Cafeterias Other than Employer and School) Best customers:

Householders aged 25 to 44 Married couples with children at home Asians and Hispanics

Customer trends:

Average household spending in this category may decline as boomers begin to retire and have time for more leisurely lunches at full-service restaurants.

Workers and parents are the best customers of fast-food lunches. Householders of prime working age, 25 to 44, spend 29 to 31 percent more than average on this item and account for nearly half of the market. Married couples with children at home spend 48 percent more than average on lunches at fastfood restaurants as they try to ﬁt meals into their busy schedules. Asians and Hispanics, respectively, spend 28 and 22 percent more than average on this item. Average household spending on fast-food lunches may decline in the years ahead as boomers begin to retire and have time for more leisurely lunches at full-service restaurants.

Table 37.

Lunch at fast-food restaurants (including take-outs, deliveries, concession stands, buffets, and cafeterias other than 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

54 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$43,979,040,580.00 370.06 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$370.06 366.82 476.80 483.18 421.83 301.10 222.34 102.65

100 99 129 131 114 81 60 28

BIGGEST CUSTOMERS (market share)

100.0% 6.8 21.8 26.3 23.7 13.0 5.9 2.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$370.06 168.92 296.77 308.51 417.10 442.02 500.30 612.27

100 46 80 83 113 119 135 165

100.0% 10.0 18.6 8.0 16.8 7.0 11.7 26.3

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

370.06 458.25 345.88 549.17 561.10 569.31 500.54 313.71 213.32

100 124 93 148 152 154 135 85 58

100.0 61.9 19.9 36.7 7.4 19.6 9.6 5.2 17.1

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

370.06 474.55 331.68 452.94 363.75

100 128 90 122 98

100.0 4.4 10.8 14.1 75.3

REGION Average household Northeast Midwest South West

370.06 350.21 316.36 384.66 421.23

100 95 85 104 114

100.0 18.1 19.6 37.1 25.3

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

370.06 262.43 327.68 396.91 397.28 434.95 443.58 419.37

100 71 89 107 107 118 120 113

100.0 10.6 23.2 22.7 10.5 32.9 21.5 11.4

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 55

Lunch at Full-Service Restaurants Best customers:

Householders aged 45 to 74 Married couples without children at home Married couples with school-aged or older children at home 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—older married couples enjoying a leisurely meal. Householders aged 45 to 74 spend 10 to 16 percent more than average on this item. Married couples without children at home (many of them empty-nesters) spend 29 percent more than average on lunch at full-service restaurants. Couples with school-aged or adult children at home spend 42 to 46 percent more. Asians spend 64 percent more than the average household on full-service lunches. Average household spending on full-service lunches is likely to increase in the years ahead as boomers become empty-nesters with more free time to enjoy a leisurely meal.

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

56 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$35,782,438,870.00 301.09 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$301.09 134.54 282.29 308.92 350.71 331.60 336.09 242.30

100 45 94 103 116 110 112 80

BIGGEST CUSTOMERS (market share)

100.0% 3.1 15.8 20.7 24.2 17.6 11.0 7.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$301.09 114.85 200.35 257.45 319.87 317.10 407.44 616.89

100 38 67 86 106 105 135 205

100.0% 8.4 15.4 8.2 15.8 6.2 11.7 32.6

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

301.09 395.96 387.90 412.76 325.86 428.99 438.35 110.82 195.99

100 132 129 137 108 142 146 37 65

100.0 65.8 27.4 33.9 5.2 18.2 10.4 2.2 19.3

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

301.09 494.69 121.48 242.49 338.46

100 164 40 81 112

100.0 5.7 4.8 9.3 86.1

REGION Average household Northeast Midwest South West

301.09 265.61 266.26 304.92 363.53

100 88 88 101 121

100.0 16.9 20.2 36.2 26.8

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

301.09 146.21 225.72 287.85 323.81 450.21 416.13 511.70

100 49 75 96 108 150 138 170

100.0 7.3 19.6 20.2 10.5 41.8 24.7 17.1

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 57

Restaurant and Carry-Out Food on Trips Best customers:

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

Customer trends:

Spending in this category should grow as boomers ﬁll the peak-spending age groups, but only if discretionary income rises.

The biggest spenders on restaurant and carry-out meals on trips are the most avid travelers—older married couples. Householders aged 45 to 74 spend 23 to 28 percent more than average on this item. Married couples without children at home (most of them empty-nesters) spend 60 percent more than average on restaurant and carry-out meals on trips and control 34 percent of the market. Those with school-aged or older children at home spend 35 to 41 percent more. Average household spending on restaurant and carry-out meals on trips should grow as boomers ﬁll the peak-spending age groups, but only if discretionary income grows.

Table 39. Restaurant and carry-out food on trips 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

$28,870,529,990.00 242.93 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$242.93 92.22 196.07 269.62 298.29 311.78 273.33 109.74

100 38 81 111 123 128 113 45

BIGGEST CUSTOMERS (market share)

100.0% 2.6 13.6 22.4 25.5 20.5 11.1 4.3

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$242.93 72.83 107.73 161.59 224.24 311.88 354.06 655.40

100 30 44 67 92 128 146 270

100.0% 6.6 10.3 6.4 13.7 7.5 12.6 42.9

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

242.93 341.88 389.06 318.27 258.33 327.69 342.26 119.56 145.92

100 141 160 131 106 135 141 49 60

100.0 70.4 34.1 32.4 5.2 17.2 10.0 3.0 17.8

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

242.93 293.03 73.83 148.82 283.29

100 121 30 61 117

100.0 4.2 3.6 7.0 89.3

REGION Average household Northeast Midwest South West

242.93 236.12 224.88 194.51 345.18

100 97 93 80 142

100.0 18.6 21.2 28.6 31.6

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

242.93 68.39 150.62 220.52 267.50 430.95 399.24 487.32

100 28 62 91 110 177 164 201

100.0 4.2 16.2 19.2 10.7 49.6 29.4 20.2

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 59

Snacks at Employer and School Cafeterias Best customers:

Householders under age 45 Married couples with children at home Asians

Customer trends:

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

Not surprisingly, parents and workers are the biggest spenders on snacks at employer and school cafeterias. Householders under age 45, most of them in the workforce, spend 35 to 118 percent more than average on this item and account for 61 percent of the market. Married couples with children at home, many of them dual-income couples, spend 20 to 59 percent more than the average household on this item. Asians spend almost double the average on snacks at employer and school cafeterias. In the years ahead, average household spending on snacks in this category may decline as employers attempt to cut costs by eliminating cafeterias.

Table 40. 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

$810,509,260.00 6.82 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$6.82 14.89 7.62 9.19 6.60 5.63 2.32 1.91

100 218 112 135 97 83 34 28

BIGGEST CUSTOMERS (market share)

100.0% 15.0 18.9 27.2 20.1 13.2 3.4 2.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$6.82 3.21 7.14 7.01 5.65 9.61 11.00 8.70

100 47 105 103 83 141 161 128

100.0% 10.3 24.3 9.9 12.3 8.2 13.9 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

6.82 7.93 6.62 9.90 9.66 10.85 8.15 6.91 4.81

100 116 97 145 142 159 120 101 71

100.0 58.1 20.7 35.9 6.9 20.3 8.5 6.2 20.9

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

6.82 13.41 4.33 5.29 7.44

100 197 63 78 109

100.0 6.8 7.6 8.9 83.6

6.82 7.02 8.22 4.48 9.06

100 103 121 66 133

100.0 19.7 27.6 23.5 29.5

6.82 3.03 5.84 8.38 7.83 8.19 10.41 4.20

100 44 86 123 115 120 153 62

100.0 6.6 22.4 26.0 11.2 33.6 27.3 6.2

HOUSEHOLD INCOME Average household 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

REGION Average household Northeast Midwest South West 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 61

Snacks at Fast-Food Restaurants (Including Take-Outs, Deliveries, Concession Stands, Buffets, and Cafeterias Other than Employer and School) Best customers:

Householders aged 25 to 54 Married couples with children at home

Customer trends:

Spending may slow as the small generation X becomes the parents of children and teens.

Parents are the best customers of snacks from fast-food restaurants. Householders aged 25 to 54, many with children at home, spend 21 to 32 percent more than the average household on fast-food snacks. Married couples with children at home spend 58 percent more than average on this item, the ﬁgure peaking at 71 percent more than average among parents with school-aged children. Average household spending on snacks from fast-food restaurants is likely to slow as the small generation X enters the best-customer lifestage.

Table 41.

Snacks at fast-food restaurants (including take-outs, deliveries, concession stands, buffets, and cafeterias other than 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

$12,769,680,350.00 107.45 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$107.45 86.78 130.38 133.37 142.04 89.10 63.35 29.31

100 81 121 124 132 83 59 27

BIGGEST CUSTOMERS (market share)

100.0% 5.6 20.5 25.0 27.5 13.2 5.8 2.6

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$107.45 45.19 68.79 94.31 118.07 130.49 160.73 198.21

100 42 64 88 110 121 150 184

100.0% 9.2 14.8 8.5 16.3 7.1 12.9 29.4

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

107.45 136.37 99.23 169.28 147.57 184.25 153.65 88.57 58.38

100 127 92 158 137 171 143 82 54

100.0 63.5 19.7 38.9 6.7 21.9 10.2 5.0 16.1

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

107.45 107.20 71.31 94.74 115.00

100 100 66 88 107

100.0 3.4 8.0 10.1 82.0

REGION Average household Northeast Midwest South West

107.45 111.49 93.76 86.97 152.91

100 104 87 81 142

100.0 19.9 20.0 28.9 31.6

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

107.45 68.62 77.84 109.81 115.23 149.84 143.79 160.77

100 64 72 102 107 139 134 150

100.0 9.5 19.0 21.6 10.5 39.0 24.0 15.1

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 63

Snacks at Full-Service Restaurants Best customers:

Householders aged 25 to 44 Married couples with school-aged or older children at home

Customer trends:

Spending in this category should continue to rise 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 young adults and married couples with school-aged or older children at home. Householders aged 25 to 44 spend 19 to 47 percent more than average on snacks at full-service restaurants and account for almost half the market. Married couples with school-aged or older children at home spend 25 to 92 percent more than average on this item in part because their households include teens and young adults—who are known for their big appetites. Average household spending on snacks at full-service restaurants should grow as casual sit-down restaurants compete with fast-food establishments for the dollars of snackers.

Table 42. 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

$3,541,521,400.00 29.80 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$29.80 26.62 43.86 35.56 32.38 23.77 16.90 12.84

100 89 147 119 109 80 57 43

BIGGEST CUSTOMERS (market share)

100.0% 6.1 24.9 24.0 22.6 12.7 5.6 4.1

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$29.80 13.94 22.36 26.36 41.11 28.25 36.04 47.82

100 47 75 88 138 95 121 160

100.0% 10.3 17.4 8.5 20.5 5.5 10.4 25.5

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

29.80 36.06 31.30 41.68 32.10 37.22 57.08 19.05 18.76

100 121 105 140 108 125 192 64 63

100.0 60.5 22.4 34.6 5.2 15.9 13.6 3.9 18.7

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

29.80 28.61 20.83 30.17 31.12

100 96 70 101 104

100.0 3.3 8.4 11.6 80.0

REGION Average household Northeast Midwest South West

29.80 34.60 25.54 19.74 47.00

100 116 86 66 158

100.0 22.2 19.6 23.7 35.1

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

29.80 14.57 23.94 31.44 26.61 42.86 44.72 39.52

100 49 80 106 89 144 150 133

100.0 7.3 21.0 22.3 8.7 40.2 26.9 13.4

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 65

Snacks at Vending Machines and Mobile Vendors Best customers:

Householders under age 45 Married couples with children at home Single parents Hispanics

Customer trends:

Spending may decline as restaurants compete for snack dollars.

The biggest spenders on snacks from vending machines and mobile vendors are young adults and parents with children. Householders under age 45, most of them parents, spend 29 to 45 percent more than average on this item. Married couples with children at home spend 46 percent more than average on vending machine snacks, the ﬁgure peaking at 60 percent more than average among those with school-aged children. Single parents spend 26 percent more. Hispanics, who tend to have large families, spend 23 percent more than average on this item. Average household spending on snacks from vending machines and mobile vendors may decline in the years ahead as fast-food and full-service restaurants compete for the snack dollar.

Table 43. 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

$3,631,842,080.00 30.56 AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$30.56 39.55 44.30 41.05 34.98 21.46 12.57 2.22

100 129 145 134 114 70 41 7

BIGGEST CUSTOMERS (market share)

100.0% 8.9 24.5 27.1 23.8 11.2 4.1 0.7

AVERAGE HOUSEHOLD SPENDING

BEST CUSTOMERS (index)

$30.56 19.53 25.16 33.57 34.74 35.80 40.99 38.13

100 64 82 110 114 117 134 125

100.0% 14.0 19.1 10.6 16.9 6.9 11.6 19.9

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

30.56 35.02 24.67 44.69 40.48 48.81 39.21 38.50 18.52

100 115 81 146 132 160 128 126 61

100.0 57.3 17.2 36.2 6.4 20.4 9.1 7.7 18.0

RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other

30.56 31.49 31.03 37.66 29.52

100 103 102 123 97

100.0 3.6 12.2 14.2 74.0

REGION Average household Northeast Midwest South West

30.56 26.56 33.66 33.27 26.20

100 87 110 109 86

100.0 16.6 25.2 38.9 19.1

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

30.56 22.98 29.10 37.31 36.26 28.96 31.61 24.17

100 75 95 122 119 95 103 79

100.0 11.2 24.9 25.8 11.6 26.5 18.5 8.0

HOUSEHOLD INCOME Average household 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. “Asian” and “black” include Hispanics and non-Hispanics who identify themselves as being of the respective race alone. “Hispanic” includes people of any race who identify themselves as Hispanic. “Other” includes people who identify themselves as non-Hispanic and as Alaska Native, American Indian, Asian (who are also included in the Asian row), Native Hawaiian or other Paciﬁc Islander, as well as non-Hispanics reporting more than one race. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 67

Appendix: Spending by product and service,

Ranked by amount spent, 2006 (average annual spending of consumer units on products and services, ranked by amount spent, 2006) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.

Deductions for Social Security Mortgage interest (or rent, $2,436.89) Vehicle purchases (net outlay) Groceries (also shown by individual category) Restaurants (also shown by meal category) Gasoline and motor oil Federal income taxes Property taxes Health insurance Electricity Dinner at restaurants Vehicle insurance Lunch at restaurants Cash contributions to church, religious organizations Vehicle maintenance and repairs Women’s clothes Deductions for private pensions Maintenance and repair services, owner Residential phone service Cable TV and community antenna College tuition Cellular phone service State and local income taxes Natural gas Nonpayroll deposit to retirement plans Cash gifts to members of other households Prescription drugs Men’s clothes Homeowner’s insurance Airline fares Life and other personal insurance Lodging on trips Cigarettes Vehicle ﬁnance charges Water and sewerage maintenance Personal care services Day care centers, nurseries, and preschools Leased vehicles Restaurant meals on trips Dental services Beef Breakfast at restaurants Child support expenditures Finance charges other than mortgage and vehicle Other taxes Fresh fruits

68 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$3,810.60 3,460.96 3,420.83 3,416.86 2,317.68 2,227.46 1,711.22 1,648.73 1,464.98 1,265.88 1,072.70 886.43 768.62 752.84 688.44 628.59 607.42 559.60 541.95 539.04 523.87 523.78 519.09 508.74 447.76 408.70 392.97 352.58 342.52 334.60 322.14 320.64 302.20 297.81 286.49 274.04 265.09 256.87 242.93 238.96 236.25 233.43 215.79 202.66 202.01 195.44

47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100.

Fresh vegetables Cash contributions to charities and other organizations Owned vacation homes Computer information services Snacks at restaurants Physician’s services Motorized recreational vehicles Movie, theater, opera, ballet admissions Legal fees Pork Elementary and high school tuition Cosmetics, perfume, bath preparations Laundry and cleaning supplies Expenses for other properties Women’s footwear Computers and computer hardware for nonbusiness use Poultry Decorative items for the home Carbonated drinks Pet food Miscellaneous household products Prepared foods except frozen, salads, and desserts Television sets Jewelry Fresh milk Beer and ale at home Social, recreation, civic club membership Girls’ (aged 2 to 15) clothes Fish and seafood Sofas Housekeeping services Cash contributions to educational institutions Cheese Gardening, lawn care service Fees for participant sports Trash and garbage collection Wine at home Fees for recreational lessons Cleansing and toilet tissue, paper towels, and napkins Men’s footwear Lawn and garden supplies Maintenance and repair materials, owner Children’s (under age 2) clothes Potato chips and other snacks Vehicle registration, state and local Support for college students Hospital room and services Vet services Interest paid, home equity loan or line of credit Boys’ (aged 2 to 15) clothes Toys, games, arts and crafts, and tricycles Stationery, stationery supplies, giftwraps Bedroom furniture except mattresses and springs Beer and ale at bars, restaurants

$193.26 192.20 184.63 176.44 174.63 167.90 163.78 160.62 158.97 157.24 156.46 152.51 151.22 146.50 143.64 142.59 140.52 137.88 134.55 133.01 132.92 132.68 130.39 125.39 124.47 123.84 123.48 122.44 121.67 116.05 114.30 112.31 110.75 109.13 108.83 108.51 102.77 101.57 99.86 98.81 97.05 96.42 95.73 95.22 94.65 94.35 93.81 93.77 93.50 90.94 86.32 85.97 84.98 84.81

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 69

101. 102. 103. 104. 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. 140. 141. 142. 143. 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. 154.

Ready-to-eat and cooked cereals Fuel oil Nonprescription drugs Babysitting and child care Candy and chewing gum Deductions for government retirement Lunch meats (cold cuts) Bedroom linens Lotteries and gambling losses Postage Frozen meals Rent as pay Catered affairs School lunches Frozen prepared foods, except meals Mattresses and springs Other alcoholic beverages at bars, restaurants Wall units, cabinets, and other occasional furniture Refrigerators, freezers Accounting fees Housing while attending school Professional laundry and dry cleaning Ice cream products School books, supplies, equipment for college Maintenance and repair materials, renter Athletic gear, game tables, and exercise equipment Funeral expenses Recreational expenses on trips Hair care products Canned and bottled fruit juice Bottled water Pet purchase, supplies, medicine Admission to sporting events Ship fares School expenses and supplies (except tuition, books) Bread, other than white Eyeglasses and contact lenses Books Intracity mass transit fares Ground rent Coffee Lawn and garden equipment Bottled gas Service by professionals other than physician Newspaper and magazine subscriptions Property management, owner Nonalcoholic beverages (except carbonated, coffee, fruit-ﬂavored drinks, tea, and water) and ice Sauces and gravies Unmotored recreational vehicles Kitchen, dining room furniture Indoor plants, fresh ﬂowers Alimony Living room chairs Occupational expenses

70 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$84.73 82.65 80.58 80.57 79.13 76.98 75.62 75.44 70.99 69.38 69.04 68.96 68.61 67.82 67.54 65.27 64.90 63.27 62.80 62.35 62.01 61.95 61.62 60.27 59.51 58.11 57.47 56.50 56.05 55.29 55.23 55.21 55.12 55.02 54.71 54.23 53.99 53.55 51.09 51.08 49.89 49.68 49.25 49.14 48.66 48.46 48.44 48.25 46.86 46.44 46.17 46.16 45.48 44.53

155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167. 168. 169. 170. 171. 172. 173. 174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 185. 186. 187. 188. 189. 190. 191. 192. 193. 194. 195. 196. 197. 198. 199. 200. 201. 202. 203. 204. 205. 206. 207. 208.

Cookies Alcoholic beverages purchased on trips Lab tests, X-rays Care for elderly, invalids, handicapped, etc. Groceries on trips Canned and packaged soups Biscuits and rolls Wine at bars, restaurants Moving, storage, freight express Video cassettes, tapes, and discs Miscellaneous personal services Nonprescription vitamins Coin-operated apparel laundry and dry cleaning Eyecare services Food or board at school Washing machines Rented vehicles Eggs Boys’ footwear Deodorants, feminine hygiene, miscellaneous personal care products Cakes and cupcakes Parking fees Video game hardware and software Compact discs, records, and audio tapes Pet services Telephones and accessories Cooking stoves, ovens Baby food Photographic equipment and supplies (except ﬁlm) Nuts Canned vegetables Prepared salads Topicals and dressings Crackers White bread Rental of video cassettes, tapes, discs, ﬁlms Electric ﬂoor-cleaning equipment Frozen vegetables Hunting and ﬁshing equipment Outdoor equipment Fats and oils Oral hygiene products Clothes dryers Meals as pay Other alcoholic beverages at home Bathroom linens Window coverings Tea Salad dressings Wall-to-wall carpeting Frozen and refrigerated bakery products Girls’ footwear Salt, spices, other seasonings Schools tuition (except college, elementary, high school)

$44.38 43.36 43.23 43.17 42.89 42.18 41.84 41.62 41.57 41.20 41.17 40.12 38.85 38.81 38.39 37.99 37.49 36.67 36.04 35.08 35.02 34.88 34.10 34.03 34.01 34.01 33.71 33.65 32.56 32.48 32.31 32.31 32.09 31.83 31.77 31.44 31.34 30.54 28.68 28.66 28.36 28.19 28.10 27.17 26.92 26.77 26.67 26.31 26.13 25.68 25.60 25.42 25.34 24.58

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 71

209. 210. 211. 212. 213. 214. 215. 216. 217. 218. 219. 220. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 231. 232. 233. 234. 235. 236. 237. 238. 239. 240. 241. 242. 243. 244. 245. 246. 247. 248. 249. 250. 251. 252. 253. 254. 255. 256. 257. 258. 259. 260. 261. 262.

Curtains and draperies Power tools Tableware, nonelectric kitchenware Gifts of stocks, bonds, and mutual funds to members of other households Pasta, cornmeal, and other cereal products Jams, preserves, other sweets Baking needs Tobacco products except cigarettes Photographer fees Sound equipment Cash contributions to political organizations Floor coverings, nonpermanent Computer software and accessories for nonbusiness use Taxi fares and limousine services Phone cards Checking accounts, other bank service charges Watches Sweetrolls, coffee cakes, doughnuts Nonelectric cookware Frankfurters Home security system service fee Cemetery lots, vaults, maintenance fees Small electric kitchen appliances Tolls Dishwashers (built-in), garbage disposals, range hoods Termite and pest control Canned fruits Butter Living room tables Appliance repair, including at service center Photo processing Noncarbonated fruit-ﬂavored drinks Closet and storage items Rice Fresh fruit juice Personal digital audio players Care in convalescent or nursing home Hearing aids Lamps and lighting ﬁxtures Shaving needs School books, supplies, equipment for elementary, high school Sugar Infants’ equipment Automobile service clubs Intercity train fares VCRs and video disc players Glassware Cream Musical instruments and accessories Outdoor furniture Laundry and cleaning equipment Maintenance and repair services, renter Newspapers and magazines, nonsubscription Pies, tarts, turnovers

72 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

$24.45 24.41 24.33 24.30 24.23 23.04 22.96 22.51 22.44 22.34 22.19 21.82 21.70 21.58 21.16 21.15 21.06 20.81 20.61 20.19 19.93 19.38 19.08 19.04 19.01 18.44 18.42 18.32 18.30 17.98 17.88 17.75 17.70 17.51 17.43 17.41 17.20 16.94 16.88 16.84 16.68 16.54 16.42 16.29 16.29 16.12 15.76 15.71 15.67 15.67 15.32 14.88 14.55 13.93

263. 264. 265. 266. 267. 268. 269. 270. 271. 272. 273. 274. 275. 276. 277. 278. 279. 280. 281. 282. 283. 284. 285. 286. 287. 288. 289. 290. 291. 292. 293. 294. 295. 296. 297. 298. 299. 300. 301. 302. 303. 304. 305. 306. 307. 308. 309. 310. 311. 312. 313. 314.

Local transportation on out-of-town trips Vegetable juice Material for making clothes Bicycles China and other dinnerware Nondairy cream and imitation milk Olives, pickles, relishes Electric personal care appliances Sewing materials for slipcovers and curtains, other sewing materials for the home Prepared desserts Dried vegetables Intercity bus fares Prepared ﬂour mixes Peanut butter Security services, owner Camping equipment Microwave ovens Tenant’s insurance Vehicle inspection Lamb, organ meats, and others Ofﬁce furniture for home use Dried fruit Whiskey at home Kitchen and dining room linens Repair and rental of lawn and garden equipment, hand or power tools, other household equipment Luggage Infants’ furniture Shopping club membership fees Hand tools Hair accessories Margarine Reupholstering, furniture repair Supportive and convalescent medical equipment Drivers’ license Rental of recreational vehicles Repair of computer systems for nonbusiness use Film Sewing machines Docking and landing fees Coal, wood, and other fuels Parking at owned home Radios Fireworks Alteration, repair, and tailoring of apparel and accessories Artiﬁcial sweeteners Portable heating and cooling equipment Stamp and coin collecting Tape recorders and players Winter sports equipment Repair of TV, radio, and sound equipment Water sports equipment Window air conditioners

$13.13 13.11 13.07 13.05 12.98 12.80 12.78 12.74 12.05 12.02 11.79 11.33 11.28 11.25 10.72 10.40 9.71 9.52 9.51 9.08 9.07 8.96 8.83 8.64 8.31 7.83 7.77 7.57 7.51 7.30 7.30 7.11 7.10 6.87 6.54 6.45 6.39 6.31 6.29 6.11 6.08 5.95 5.94 5.93 5.80 5.76 5.62 5.62 5.62 5.53 5.51 5.45

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 73

315. 316. 317. 318. 319. 320. 321. 322. 323. 324. 325. 326. 327. 328. 329. 330. 331. 332. 333. 334. 335. 336. 337. 338. 339. 340. 341. 342. 343. 344. 345. 346. 347. 348. 349. 350. 351. 352. 353. 354. 355. 356. 357. 358. 359. 360. 361. 362.

Sewing patterns and notions Towing charges Frozen fruit juice Flour Medical equipment for general use Slipcovers, decorative pillows Deductions for railroad retirement Playground equipment Bread and cracker products Watch and jewelry repair Flatware Personal digital assistants Frozen fruits Water softening service Safe deposit box rental Clocks Rental and repair of miscellaneous sports equipment Streaming and downloading audio School books, supplies, equipment for day care, nursery, other Delivery services Coin-operated household laundry and dry cleaning (nonclothing) Rental of furniture Business equipment for home use Septic tank cleaning Silver serving pieces Rental of medical equipment Smoking accessories Wigs and hairpieces Clothing rental Plastic dinnerware Pinball, electronic video games Credit card memberships Internet services away from home Appliance rental Global positioning services School bus Smoke alarms Shoe repair and other shoe service Repair and rental of photographic equipment Repair and rental of musical instruments Household nonclothing laundry and dry cleaning, sent out, not coin-operated Streaming and downloading video Satellite dishes Portable dishwasher Dating services Telephone answering devices Clothing storage Rental of television sets

$5.43 5.11 5.05 4.95 4.94 4.90 4.77 4.55 4.35 4.24 4.16 4.12 4.07 4.04 3.73 3.70 3.64 3.62 3.53 3.16 3.00 2.96 2.50 2.40 2.30 2.19 2.12 2.01 1.96 1.95 1.90 1.89 1.64 1.63 1.60 1.59 1.42 1.37 1.30 1.16 1.09 1.03 0.92 0.91 0.72 0.69 0.44 0.44

Source: Calculations by New Strategist based on the 2006 Consumer Expenditure Survey

74 WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS

Glossary age The age of the reference person. alcoholic beverages Includes beer and ale, wine, whiskey, gin, vodka, rum, and other alcoholic beverages. annual spending The annual amount spent per household. The Bureau of Labor Statistics calculates the annual average for all households in a segment, not just for those that purchased an item. The averages are calculated by integrating the results of the diary (weekly) and interview (quarterly) portions of the Consumer Expenditure Survey. For items purchased by most households—such as bread—average annual spending ﬁgures are a fairly accurate account of actual spending. For products and services purchased by few households during a year’s time—such as cars—the average annual amount spent is much less than what purchasers spend. apparel, accessories, and related services Includes the following: • men’s and boys’ apparel Includes coats, jackets, sweaters, vests, sport coats, tailored jackets, slacks, shorts and short sets, sportswear, shirts, underwear, nightwear, hosiery, uniforms, and other accessories. • women’s and girls’ apparel Includes coats, jackets, furs, sport coats, tailored jackets, sweaters, vests, blouses, shirts, dresses, dungarees, culottes, slacks, shorts, sportswear, underwear, nightwear, uniforms, hosiery, and other accessories. • infants’ apparel Includes coats, jackets, snowsuits, underwear, diapers, dresses, crawlers, sleeping garments, hosiery, footwear, and other accessories for children. • footwear Includes articles such as shoes, slippers, boots, and other similar items. It excludes footwear for babies and footwear used for sports such as bowling or golf shoes. • other apparel products and services Includes material for making clothes, shoe repair, alterations and sewing patterns and notions, clothing rental, clothing storage, dry cleaning, sent-out laundry, watches, jewelry, and repairs to watches and jewelry. baby boom Americans born between 1946 and 1964. cash contributions Includes cash contributed to persons or organizations outside the consumer unit including courtordered alimony, child support payments, and support for college students, and contributions to religious, educational, charitable, or political organizations. consumer unit (1) All 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 or more persons 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 household in the text of this report.

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 of 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. earner A consumer unit member aged 14 or older who worked at least one week during the twelve months prior to the interview date. education Includes tuition, fees, books, supplies, and equipment for public and private nursery schools, elementary and high schools, colleges and universities, and other schools. entertainment Includes the following: • fees and admissions Includes fees for participant sports; admissions to sporting events, movies, concerts, plays; health, swimming, tennis, and country club memberships, and other social recreational and fraternal organizations; recreational lessons or instructions; and recreational expenses on trips. • audio and visual equipment and services Includes television sets; radios; cable TV; tape recorders and players; video cassettes, tapes, and discs; video cassette recorders and video disc players; video game hardware and software; personal digital audio players; streaming and downloading audio and video; sound components; CDs, records, and tapes; musical instruments; and rental and repair of TV and sound equipment. • pets, toys, hobbies, and playground equipment Includes pet food, pet services, veterinary expenses, toys, games, hobbies, and playground equipment. • other entertainment equipment and services Includes indoor exercise equipment, athletic shoes, bicycles, trailers, campers, camping equipment, rental of cameras and trailers, hunting and ﬁshing equipment, sports equipment, winter sports equipment, water sports equipment, boats, boat motors and boat trailers, rental of boats, landing and docking fees, rental and repair of sports equipment, photographic equipment, ﬁlm, photo processing, photographer fees, repair and rental of photo equipment, ﬁreworks, pinball and electronic video games. 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. federal income tax Includes federal income tax withheld in the survey year to pay for income earned in survey year plus additional tax paid in survey year to cover any underpayment or underwithholding of tax in the year prior to the survey. ﬁnancial products and services Includes accounting fees, legal fees, union dues, professional dues and fees, other occupational expenses, funerals, cemetery lots, dating services, shopping club memberships, and unclassiﬁed fees and personal services.

WHO’S BUYING AT RESTAURANTS AND CARRY-OUTS 75

food Includes the following: • food at home Refers to the total expenditures for food at grocery stores or other food stores during the interview period. It is calculated by multiplying the number of visits to a grocery or other food store by the average amount spent per visit. It excludes the purchase of nonfood items. • food away from home Includes all meals (breakfast, lunch, brunch, and dinner) at restaurants, carry-outs, and vending machines, including tips, plus meals as pay, special catered affairs such as weddings, bar mitzvahs, and conﬁrmations, and meals away from home on trips. generation X Americans born between 1965 and 1976; also known as the baby-bust generation. gifts for people in other households Includes gift expenditures for people living in other consumer units. The amount spent on gifts is also included in individual product and service categories. health care Includes the following: • health insurance Includes health maintenance plans (HMOs), Blue Cross/Blue Shield, commercial health insurance, Medicare, Medicare supplemental insurance, long-term care insurance, and other health insurance. • medical services Includes hospital room and services, physicians’ services, services of a practitioner other than a physician, eye and dental care, lab tests, X-rays, nursing, therapy services, care in convalescent or nursing home, and other medical care. • drugs Includes prescription and nonprescription drugs, internal and respiratory over-the-counter drugs. • medical supplies Includes eyeglasses and contact lenses, topicals and dressings, antiseptics, bandages, cotton, ﬁrst aid kits, contraceptives; medical equipment for general use such as syringes, ice bags, thermometers, vaporizers, heating pads; supportive or convalescent medical equipment such as hearing aids, braces, canes, crutches, and walkers. 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 report. household furnishings and equipment Includes the following: • household textiles Includes bathroom, kitchen, dining room, and other linens, curtains and drapes, slipcovers and decorative pillows, and sewing materials. • furniture Includes living room, dining room, kitchen, bedroom, nursery, porch, lawn, and other outdoor furniture. • carpet, rugs, and other ﬂoor coverings Includes installation and replacement of wall-to-wall carpets, room-size rugs, and other soft ﬂoor coverings.

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• major appliances Includes refrigerators, freezers, dishwashers, stoves, ovens, garbage disposals, vacuum cleaners, microwave ovens, air-conditioners, sewing machines, washing machines, clothes dryers, and ﬂoor-cleaning equipment. • small appliances and miscellaneous housewares Includes small electrical kitchen appliances, portable heating and cooling equipment, china and other dinnerware, ﬂatware, glassware, silver and other serving pieces, nonelectric cookware, and plastic dinnerware. Excludes personal care appliances. • miscellaneous household equipment Includes computer hardware and software, luggage, lamps and other lighting ﬁxtures, window coverings, clocks, lawn mowers and gardening equipment, hand and power tools, telephone answering devices, personal digital assistants, Internet services away from home, ofﬁce equipment for home use, fresh ﬂowers and house plants, rental of furniture, closet and storage items, household decorative items, infants’ equipment, outdoor equipment, smoke alarms, other household appliances, and small miscellaneous furnishing. household services Includes the following: • personal services Includes baby sitting, day care, and care of elderly and handicapped persons. • other household services Includes computer information services; housekeeping services; gardening and lawn care services; coin-operated laundry and dry-cleaning of household textiles; termite and pest control products; moving, storage, and freight expenses; repair of household appliances and other household equipment; reupholstering and furniture repair; rental and repair of lawn and gardening tools; and rental of other household equipment. housekeeping supplies Includes soaps, detergents, other laundry cleaning products, cleansing and toilet tissue, paper towels, napkins, and miscellaneous household products; lawn and garden supplies, postage, stationery, stationery supplies, and gift wrap. housing tenure “Owner” includes households living in their own homes, cooperatives, condominiums, or townhouses. “Renter” includes households paying rent as well as families living rent free in lieu of wages. 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 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 money 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. • regular contributions for support Includes alimony and child support as well as any regular contributions from persons outside the consumer unit. • 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. indexed spending Indexed spending ﬁgures compare the spending of particular demographic segments 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. life and other personal insurance Includes premiums from whole life and term insurance; endowments; income and other life insurance; mortgage guarantee insurance; mortgage life insurance; premiums for personal life liability, accident and disability; and other non–health insurance other than homes and vehicles. 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 Americans born between 1977 and 1994. occupation The occupation in which the reference person received the most earnings during the survey period. The occupational categories follow those of the Census of Population. Categories shown in the tables include the following: • self-employed Includes all occupational categories; the reference person is self-employed in own business, professional practice, or farm. • wage and salary earners, managers and professionals Includes executives, administrators, managers, and professional specialties such as architects, engineers, natural and social scientists, lawyers, teachers, writers, health diagnosis and treatment workers, entertainers, and athletes. • wage and salary earners, technical, sales, and clerical workers Includes technicians and related support workers; sales representatives, sales workers, cashiers, and sales-related occupations; and administrative support, including clerical. • retired People who did not work either full- or part-time during the survey period. owner See housing tenure. pensions and Social Security Includes all Social Security contributions paid by employees; employees’ contributions to railroad retirement, government retirement and private pensions programs; retirement programs for self-employed. personal care Includes products for the hair, oral hygiene products, shaving needs, cosmetics, bath products, suntan lotions, hand creams, electric personal care appliances, incontinence products, other personal care products, personal care services such as hair care services (haircuts, bleaching, tinting, coloring, conditioning treatments, permanents, press, and curls), styling and other services for wigs and hairpieces, body massages or slenderizing treatments, facials, manicures, pedicures, shaves, electrolysis. quarterly spending Quarterly spending data are collected in the interview portion of the Consumer Expenditure Survey. The quarterly spending tables show the percentage of households that purchased an item during an average quarter, and the amount spent during the quarter on the item by purchasers. Not all items are included in the interview portion of the Consumer Expenditure Survey. reading Includes subscriptions for newspapers, magazines, and books through book clubs; purchase of single-copy newspapers and magazines, books, and encyclopedias and other reference books. 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.

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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: • Northeast Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. • Midwest Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Mississippi, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. • South Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. • West Alaska, Arizona, California, Colorado, Hawaii, Idaho, Minnesota, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. renter See housing tenure. shelter Includes the following: • owned dwellings Includes interest on mortgages, property taxes and insurance, reﬁnancing and prepayment charges, ground rent, expenses for property management and security, homeowner’s insurance, ﬁre insurance and extended coverage, landscaping expenses for repairs and maintenance contracted out (including periodic maintenance and service contracts), and expenses of materials for owner-performed repairs and maintenance for dwellings used or maintained by the consumer unit, but not dwellings maintained for business or rent. • rented dwellings Includes rent paid for dwellings, rent received as pay, parking fees, maintenance, and other expenses. • other lodging Includes all expenses for vacation homes, school, college, hotels, motels, cottages, trailer camps, and other lodging while out of town. • utilities, fuels, and public services Includes natural gas, electricity, fuel oil, coal, bottled gas, wood, other fuels; residential telephone service, cell phone service, phone cards; water, garbage, trash collection; sewerage maintenance, septic tank cleaning; and other public services. size of consumer unit The number of people whose usual place of residence at the time of the interview is in the consumer unit. state and local income taxes Includes state and local income taxes withheld in the survey year to pay for income earned in survey year plus additional taxes paid in the survey year to cover any underpayment or underwithholding of taxes in the year prior to the survey. tobacco and smoking supplies Includes cigarettes, cigars, snuff, loose smoking tobacco, chewing tobacco, and smoking accessories such as cigarette or cigar holders, pipes, ﬂints, lighters, pipe cleaners, and other smoking products and accessories. transportation Includes the following: • vehicle purchases (net outlay) Includes the net outlay (purchase price minus trade-in value) on new and used domestic and imported cars and trucks and other vehicles, including motorcycles and private planes.

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• gasoline and motor oil Includes gasoline, diesel fuel, and motor oil. • other vehicle expenses Includes vehicle finance charges, maintenance and repairs, vehicle insurance, and vehicle rental licenses and other charges. • vehicle ﬁnance charges Includes the dollar amount of interest paid for a loan contracted for the purchase of vehicles described above. • maintenance and repairs Includes tires, batteries, tubes, lubrication, ﬁlters, coolant, additives, brake and transmission ﬂuids, oil change, brake adjustment and repair, front-end alignment, wheel balancing, steering repair, shock absorber replacement, clutch and transmission repair, electrical system repair, repair to cooling system, drive train repair, drive shaft and rear-end repair, tire repair, vehicle video equipment, other maintenance and services, and auto repair policies. • vehicle insurance Includes the premium paid for insuring cars, trucks, and other vehicles. • vehicle rental, licenses, and other charges Includes leased and rented cars, trucks, motorcycles, and aircraft, inspection fees, state and local registration, drivers’ license fees, parking fees, towing charges, tolls on trips, and global positioning services. • public transportation Includes fares for mass transit, buses, trains, airlines, taxis, private school buses, and fares paid on trips for trains, boats, taxis, buses, and trains. weekly spending Weekly spending data are collected in the diary portion of the Consumer Expenditure Survey. The data show the percentage of households that purchased an item during the average week, and the amount spent per week on the item by purchasers. Not all items are included in the diary portion of the Consumer Expenditure Survey.