Restaurant spending cools in March
Solix Trading reposted Bank of America data showing restaurant spending growth cooled to 1.3% in March. (x.com)
Restaurant spending growth slowed to 1.3% in March, according to Bank of America card data, even as overall card spending stayed much stronger. (institute.bankofamerica.com) Bank of America Institute said total credit and debit card spending per household rose 4.3% from a year earlier in March, the biggest gain since early 2023. Excluding gasoline, which jumped with higher pump prices, overall spending still rose 3.6% year over year. (institute.bankofamerica.com) That left restaurants growing more slowly than the broader consumer economy in March. Bank of America said services still added the biggest share of overall spending growth, but lower-income households saw discretionary spending ease during the month. (institute.bankofamerica.com) Restaurants are closely watched because eating out is one of the first expenses households can trim when budgets tighten. Bank of America said food services and drinking places have taken a bigger share of retail spending since 2020, but growth in that category moderated in the second half of 2025. (institute.bankofamerica.com) Bank of America’s February restaurant report said higher prices and slower income growth were making diners more selective about where and how often they eat out. The bank also said the cooling labor market in late 2025 likely depressed spending growth in the sector, especially for lower- and middle-income consumers. (institute.bankofamerica.com) Price pressure has not gone away. The Bureau of Labor Statistics said the overall Consumer Price Index rose 0.9% in March and 3.3% over the prior 12 months, with energy a major driver of the monthly increase. (bls.gov) The government’s main March retail sales report is not out yet. The Census Bureau said the March 2026 advance retail and food services release was pushed to April 21, 2026, leaving private card trackers like Bank of America as an early read on restaurant demand. (census.gov) Industry forecasts for 2026 already pointed to a slower year. The National Restaurant Association said in February that restaurant and foodservice sales are projected to reach $1.55 trillion in 2026, with real sales growth of 1.3% as operators face a cooling labor market, persistent costs, and cautious household spending. (restaurant.org) March’s 1.3% restaurant gain fits that picture: people are still going out, but not with the same momentum showing up in headline card spending. (institute.bankofamerica.com)
