"After the endemic, the most Americans are cooking at home. Consumption of Campbell Soup has increased across all income levels."
Mix Barkheisen, the CEO of the world-renowned canned soup manufacturer Campbell Company, which also appeared in Andy Warhol's pop art, said on the 2nd (local time) at the quarterly earnings announcement site, "We recorded 15% higher sales compared to the same period last year."
According to Bloomberg, Campbell Company achieved sales of $2.48 billion (approximately 3.4 trillion won) this quarter, exceeding Wall Street analysts' expectations.
The secret was simple. American consumers, weary of high prices, sought the familiar Campbell Soup as they prepared meals affordably and conveniently at home instead of dining out.
CEO Barkheisen noted, "Consumers are choosing our brand based on value and convenience," adding, "The home-cooking crowd is using canned soup as an attractive ingredient, trying to make efficient use of their tightened grocery budgets."
The dining landscape for Americans is changing. Casual dining restaurants, once synonymous with family outings, are facing a downturn. In contrast, the sales of food products that can be easily prepared at home are increasing.
McDonald's, symbolic of "cost-performance," saw a 3.6% drop in same-store sales in the U.S. during the first quarter. Having lost appeal among low-income customers, the frequency at which even the middle class visits McDonald's has decreased, resulting in the worst performance since the pandemic.
Chris Kempczinski, the CEO of McDonald's, said after the earnings announcement, "Low-income consumers have reduced their frequency of visiting QSRs (quick-service restaurants) like McDonald's by double-digit percentages compared to last year," and noted, "Unlike a few months ago, the frequency with which middle-class consumers visit QSRs has also noticeably decreased."
The situation for the widely known family restaurant Outback Steakhouse in Korea is even more severe. Bloomin' Brands, which operates Outback in the U.S., has recorded negative growth in six out of eight recent quarters. In April, the drop in sales widened to 8.3%, plunging the company into a slump.
Ultimately, Bloomin' Brands announced it would reduce the number of menu items at Outback Steakhouse in the U.S. by up to 20% and embark on a major restructuring.
CNBC, citing the market research firm PlaceIQ, analyzed that "the number of fast-food restaurant visitors in the U.S. decreased by 3.5% in the fourth quarter of last year compared to 2023," adding, "The number of visitors to full-service restaurants, which serve at the table, dropped by 5.2%, indicating a more rapid decline."
Even well-known brands that once dominated the dining market are filing for bankruptcy in succession. TGI Fridays filed for Chapter 11 bankruptcy protection last November and has begun large-scale store closures. Currently, it is reported that there are only 85 operational locations in the U.S.
The seafood buffet restaurant known as "Red Lobster" also filed for bankruptcy last May. Red Lobster once had over 700 locations across the U.S. However, the burden of excessive rent, management difficulties, and a failed all-you-can-eat shrimp promotion pursued by its Thai major shareholder, Thai Union, have contributed to its collapse. In addition, restaurants like Hooters, which gained popularity with unique concepts, and Mexican restaurant On The Border have also sequentially filed for bankruptcy protection.
Neil Saunders, an analyst at GlobalData, noted, "Consumers are experiencing significant financial pressure as dining-out expenses have risen sharply," and forecasted that "the foodservice industry will polarize into low-cost brands prioritizing value-for-money satisfaction and a few premium brands offering unique experiences."