More people are choosing to eat at home as rising food prices continue to affect their dining habits, causing a decline in restaurant sales. Inflation, which has been easing for over a year, has led to a faster decrease in grocery prices since mid-year. This trend contrasts with previous years when grocery costs were higher than restaurant prices. Darden Restaurants, which owns Olive Garden, experienced a 1.1% sales drop across its chains, with Olive Garden seeing a more severe 2.9% decline. McDonald’s reported a similar 1.1% drop in sales during its second quarter, compared to a significant 11.7% increase during the same period last year.

In response, both McDonald’s and Olive Garden have introduced cost-saving measures to attract more price-sensitive customers. McDonald’s launched a $5 value meal, while Olive Garden revived its popular “never-ending pasta bowl” promotion. As consumers shift towards buying groceries, companies like General Mills, known for Cheerios and Progresso soups, have seen an uptick in sales. General Mills and other food producers had previously raised prices to offset inflation but are now trimming prices to ease the financial burden on shoppers. Meanwhile, grocery chain Kroger reported a 1.2% increase in sales and expects this trend to continue throughout the year. Kroger’s CEO expressed cautious optimism about future growth, predicting that customers will maintain a focus on purchasing essential items, particularly food. As the food industry adapts, grocery stores are gaining ground while restaurants work to regain customer interest through competitive pricing.