
As households with annual incomes >$70k drive 62% of total food-away-from-home sales, it is more important than ever to focus on this demo especially as spending from the lower-income demo slows.
Commentary
We have recently heard from Wendy’s and Walmart about a 4Q22 spending slow-up from the <$75k income demo which has been offset by a pick-up in higher-income demo spending (likely driven by trade-down as wealthier consumers look for more cost-effective options provided by companies like Wendy’s & Walmart).
Notably, data from 2021 (pre-inflationary spike) presented in the chart below reveals the importance of higher income demos in driving food sales – particularly as it relates to food-away-from-home (eating out).
