Food inflation leads diners to cheaper menu items

Published on:

Introduction to the Appetizer Economy

Consumers are still dining out, but instead of higher-priced entrees, many are ordering more appetizers. As food inflation and affordability dominate the conversation about the U.S. consumer, new restaurant purchasing data shows even among Americans who are going to restaurants, many are in the mindset of cutting back. According to Jim Pazzanese, executive vice president of global strategic procurement of Buyers Edge Platform, which tracks supply chain data within the food service industry, “Appetizer orders are up 20% year over year, even as entrees and desserts are largely flat or declining.”

Trends in Appetizer Orders

The shift is visible at the item level, with some popular appetizer sales to restaurant operators experiencing growth rates north of 30%. The top-growing appetizers include mozzarella sticks, up 36%, pickle chips, up 35%, cheese curds, up 33%, jalapeno poppers, up 20%, and cheese bites, up 17%, according to Buyers Edge, year-to-date data. Pazzanese is calling the current restaurant environment the “appetizer economy.” Meanwhile, he says dessert orders are down 2 percent year over year.

Reasons Behind the Rise of Appetizers

One reason for the rising popularity of appetizers, Pazzanese says, is their link to promotions, which are key to getting Americans to spend in the current economic environment. “Consumers realize appetizers are more frequently tied to promotions and drink specials,” he said. “This makes eating out more affordable.” He added that buying of frozen or shelf-stable appetizers, which are the fastest-growing appetizer SKUs, makes sense from an economic perspective for restaurant operators, too. “This is helping owners and managers reduce waste and manage unpredictable demands,” Pazzanese said.

Impact of Food Inflation on Consumer Spending

The K-shaped economy we are seeing is being reflected in food spending, according to Brian Choi, CEO of the Food Institute. In the grocery store, he said that is being seen in the continued migration to private label brands as food inflation influences consumer purchasing. “The top 10 percent are increasing their spending in novel products and are willing to pay, but the vast majority of consumers are moving down to private label versus national brands,” said Choi. “Consumers can save anywhere from 10-20 percent by switching to a private label,” Choi added.

Private Label Brands on the Rise

In a recent Food Institute survey, consumer perception of private labels has gone up substantially over the last five years, and it is now on par with national brands. Companies such as Albertsons, Costco, and Kroger are increasing their shelf space for their own private label products. “Save Mart launched a private-label for beef, poultry, and pork, and Amazon launched Amazon Grocery with many products under $5,” Choi said. “Albertsons believes private label could represent 30 percent of sales.” Amazon debuted its private-label grocer in October.

Food Price Inflation and Its Effects

While inflation may be down from 2022 highs, food inflation has been stubborn, according to Food Institute data. “Food price inflation has increased since the midpoint of 2025, with food-at-home prices up in the range of 1.9 percent to 2.7 percent year-over-year,” Choi said. The latest consumer price index for September showed food prices up 3.1% year over year. Prices for meat, poultry, fish and eggs surged 5.2% in the past year.

Future Outlook and Expectations

“We expect further growth for private label, and it should outpace national brands in 2026,” Choi said. The September CPI showed “food away from home” inflation even higher than food inflation overall, at 3.7%, with full-service meals at 4.2%. That is leading to more private-label spending by restaurants, college and university dining halls, and convenience stores. “The $1.5 trillion food away from home industry is seeing the move to more private label brands to save money,” said Phil Kafarakis, CEO of the IFMA, the Food Away from Home Association.

Smart Tip for Readers

When dining out, consider ordering appetizers or sharing smaller plates to reduce food waste and save money, and look for restaurants that offer promotions and discounts on these items. For more information on the current state of food inflation and consumer spending, visit Here

Latest News

Leave a Reply

Please enter your comment!
Please enter your name here