Pricing gap between restaurants and grocers shrinks

June 16, 2017

This post is part of the On the Margin blog.

Commodity costs began easing in 2015, and grocers started lowering their prices. The result was a pricing gap with restaurants that widened to as much as 460 basis points during some months last year.

The pricing gap is getting much of the blame for a corresponding slowdown in restaurant traffic and same-store sales. Same-store sales peaked in January 2015, slowed throughout the year and turned south for much of 2016, and sales have been in decline since, according to all major industry same-store sales trackers.

So this should be good news for