With Gas Prices High, Consumers Warm To The Idea Of Eating In

I found this article recently from the ChicagoTribune. It speaks to what everyone is experiencing nationwide - the crunch due to high gas prices and how we are all changing our habits accordingly. One of the biggest trends in America today is that of consumers choosing to entertain in their homes rather than going out to eat at expensive restaurants. We are finding this to be true here at home in Colorado Springs. Many of our clients tell us that one of their main reasons for renovating and beautifying their homes is because they would like to cook more and have friends and family over, but had not because they were embarassed of their outdated kitchen and bath. After their remodel is complete we often hear how they wish they would have done it sooner because they are finding that they do entertain and enjoy having people over more than ever.
I hope you find this as interesting and informative as I did. Bon Appetit!

—Associated Press
September 21, 2008
The high price of gas has consumers testing their cooking skills to save money—going to the grocery store more frequently instead of eating out, packing lunch for work and experimenting with new recipes at home.About 45 percent of Americans are eating out less this year to save money, a nearly 12 percent increase from 2007, according to BIGResearch, a Worthington, Ohio-based firm that does consumer research. "Consumers are really pulling back right now. They're really watching their pockets," said one of the firm's senior analysts, Pam Goodfellow.
Sales are cookingThe sudden rush to buy cooking necessities has driven up sales of cookbooks, inexpensive cookware and the basic foods needed to concoct a meal. And cooking magazines and Web sites are booming even as magazine sales overall have suffered. Cookware sales as a whole have declined in the past year, but items selling for less than $100 are doing "remarkably well," said Florence Sheffer, spokeswoman for the cookware distributor Meyer Corp. in Vallejo, Calif. Cast-iron cookware in that price category, for instance, has recorded a 19 percent sales increase over a year ago, the most popular being those with celebrity chef name tags. "That suggests to me there are probably a lot of new cooks entering, because I think a lot of the people watching the Food Network ... are really just opening up to the idea of cooking," Sheffer said.
Food-centered salesFurther evidence is a boost in sales of "center store" items in supermarkets: pasta, canned goods, baking goods and spices. Such sales have risen by 3.4 percent in recent months, said Thom Blischok, president of IRI Consulting and Innovation in Chicago.
Hungry for recipesBon Appetit, a magazine that serves up recipes for everything from gourmet meals to fast and easy dinners, said newsstand sales in May were up 39 percent from a year ago. Borders Group Inc. said cookbook sales were up in the second quarter of this year, which ended in June, over the first quarter. Amazon.com has seen double-digit growth in book sales in the food, cooking and wine category during this past year, said spokeswoman Tammy Hovey. Mary Davis, a Borders corporate affairs manager, said sales of "comfort food cookbooks," covering baking, cookies and desserts have seen double-digit sales increases in the past year. "These are dishes that require a time commitment to prepare and bake, suggesting people are staying at home," she said.
Taking stockBecause of the eating-in trend, some casual dining restaurants are taking a hit in stock price and sales, said Lynne Collier, a senior restaurant analyst for Cleveland, Ohio-based KeyBanc Capital Markets Inc. Arnisha Keyes of Pittsburgh said that until recently, she spent $30 a day to eat breakfast, lunch and dinner at restaurants. "It saves you a lot more money if you just buckle down and focus on eating at home," Keyes said, laughing sheepishly at her previous lifestyle. Still, even cooking can be expensive. The IRI survey on grocery sales found that about 30 percent of 1,000 consumers questioned said they were buying less fresh produce. Half said they were buying more generic brand products.
What's next?It looks like prices will keep rising, according to the U.S. Department of Agriculture's Economic Research Service. In February, the service forecast food prices will increase 3 to 4 percent this year. Last year's 4 percent increase was the highest in 17 years.

to learn more go to ChicagoTribune.com (September 21, 2008)