Dining out has always been a luxury, but rising prices forced many Americans to make different choices when it comes to where they eat, or if they just stay home.

My wife and I, for example, generally eat out on Friday and Saturday night, and, with prices higher, we might opt for Longhorn Steakhouse over an actual steakhouse, or go to Carrabba’s instead of the much nicer, and much pricier Italian restaurants in town.

Eating out remains popular across the U.S., but rising prices are quietly changing how and how often Americans dine out. Higher prices and shifting consumer priorities are reshaping how and where people choose to eat, according to YouGov’s new Check, please: U.S. dining out report 2025

  • Seven in ten Americans still eat out at least once a month, but more than a third (37%) say they’re doing so less often than a year ago.
  • Among lower-income households, that figure rises to 44%, underscoring how inflation continues to squeeze discretionary spending.
  • Only 8% report eating out more frequently.
  • Of those cutting back, nearly seven in ten (69%) cite the rising cost of restaurant meals, while 58% say they’re simply trying to save money.

Sometimes the perception of inflation and the reality of it don’t match. That’s not true right now, according to the most-recent Consumer Price Index data from the U.S. Bureau of Labor Statistics.

Restaurant and grocery prices have gone up

Prices for both food-at-home (grocery/supermarket) and food-away-from-home (restaurants) inched up in December. Grocery prices rose by 2.4%, compared to 1.9% in November. 

Meanwhile, menu prices continued to significantly outpace general inflation numbers, increasing by 4.1% in December, compared to 3.7% in November, and marking the highest year-over-year growth since July 2024.

The overall inflation rate came in at 2.7%.

“The index for full-service meals rose 0.8% during the month, while the index for limited-service meals increased 0.6%. Year-over-year, the index for full-service meals rose 4.9%, while the index for limited-service meals rose 3.3%,” Nation’s Restaurant News reported.

  • December marked the 33rd month in a row in which restaurant prices outpaced grocery prices, which could make people opt to eat at home, according to Kalinowski Equity Research,  
  • December’s menu price increases marked the fastest monthly growth since October 2022. In 2025, prices for food away from home averaged monthly growth of 0.4%, according to the National Restaurant Association,

Restaurant analysts say this widening gap between menu prices and grocery inflation is accelerating “trade-down” behavior, pushing consumers toward value menus, limited-service restaurants, and fewer full-service visits overall, even among middle-income households.

“And diners, for their part, are adjusting in equally subtle ways. They skip the add-on. They switch the drink. They stick with the item that still feels like value. A month like November — steady, unremarkable, expensive — is how higher prices become the backdrop rather than the headline,” Food & Wine reported.

Personally, we’re more likely to trade down to cheaper restaurant options, saving pricier places for birthdays, holidays, and other special occasions.

McDonald’s has lowered some prices.

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McDonald’s makes major changes

While a lot of restaurants have leaned into value, McDonald’s has been very vocal about its efforts to win back lower-income customers.

“In the U.S., we continue to see a bifurcated consumer base with QSR traffic from lower-income consumers declining nearly double digits in the third quarter, a trend that’s persisted for nearly 2 years. In contrast, QSR traffic growth among higher-income consumers remained strong, increasing by nearly double digits in the quarter,” CEO Christopher Kempczinski shared during the chain’s third-quarter earnings call.

That has led the chain to double down on value, including offering cheaper combos at bringing back the Snack Wrap at $2.99.

“We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026. Delivering industry-leading value is part of McDonald’s DNA. It’s a foundational expectation of our brand to bring consumers through our doors and keep them coming back. And especially in today’s difficult macro environment, it’s more important than ever,” he added.

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The CEO also shared some concrete examples.

“In September, we introduced Extra Value Meals or EVMs with a nationally advertised $5 Sausage McMuffin with Egg meal and an $8 Big Mac meal. And for the month of November, we’re back with a $5 Sausage Egg and Cheese McGriddles meal and an $8 10-piece Chicken McNuggets meal,” he said.

Kroger lowers prices

Interim Kroger CEO acknowledged that shoppers have become more careful during his chain’s third-quarter earnings call.

“Customers are turning to promotions and Our Brands as smart ways to save without sacrificing quality. Ready-to-eat and other meal solutions are providing another way for households to get quality and convenience at a great value. Inflation and uncertainty around government funding,” he said.

He also noted the bifurcated customer base.

“I just think customers are managing their budgets carefully. And they’re making more trips. They’re making smaller trips. The idea of stocking up is declining a bit. And we’re seeing this economy where high-income premium shoppers continue to spend while lower-income customers are pulling back more aggressively,” he added.

To address this, Kroger has made some noticeable changes. The chain has lowered prices on 3,500 items, according to Consumer Affairs.

Here’s where the chain is lowering prices.

  • Fresh produce and meat: Fresh fruit, veggies, and meats are specifically being targeted for price cuts. This is good news for shoppers, especially as meat prices continue to climb nationwide.  
  • Everyday staples: These are the products that typically live in the center aisles. Items like canned goods, pantry basics, and private-label alternatives that are easy to price compare with the name-brand sitting right next to them on the shelf.
  • Store brands: Kroger’s Simple Truth and Private Selection labels are a huge business (over $32 billion in sales last year), and they’re using these to undercut name brands and build some store loyalty in the process.

Related: Popular coffee chain closing all locations soon