Rising food prices are driving more people to eat at home, which is causing a decline in restaurant sales. Inflation, which has been easing for over a year, has led to a quicker drop in grocery prices since mid-year. This marks a significant shift from earlier years when grocery costs were higher than eating out. Darden Restaurants, the parent company of Olive Garden, experienced a 1.1% decrease in overall sales, with Olive Garden suffering a larger 2.9% decline. McDonald’s also saw a 1.1% drop in second-quarter sales, a stark contrast to the 11.7% increase during the same time last year.

In response, McDonald’s launched a $5 value meal, while Olive Garden revived its well-known “never-ending pasta bowl” promotion to appeal to price-sensitive customers. As more consumers shift to grocery shopping, companies like General Mills, famous for products such as Cheerios, are witnessing an increase in sales. Food producers, who initially raised prices to cope with inflation, are now cutting costs to ease the financial burden on shoppers. Meanwhile, grocery chain Kroger reported a 1.2% rise in sales and expects the trend to continue as customers focus more on purchasing essential food items.