Where Americans Are Cutting Corners: Food
In Businessweek, economist Michael Mandel takes a look at what Americans are consuming less of lately. Of the $164 billion decrease in spending from January 2008 to January 2009, the No. 1 cutback category (a $114 billion decline, adjusted for inflation) is "user-operated transportation" (cars and trucks and their attendant oil and gas). But food spending checks in at No. 2, representing a $56 billion decline (again, adjusted for inflation).
But I also wonder whether the incessant public drumbeating about "fat Americans" and obesity is helping propel the decline in food consumption. The easiest way to save is to spend less on things you know you shouldn't be consuming anyhow, like too much food.
No. 3, clothing, is down only $18 billion.
Mandel's findings make sense to me. Cars are expensive, so even a small cutback in the total number of vehicles purchased could represent the large decline. And, at least for me, I buy clothes only when I really need them, so I don't have much room to cut there.
Food, however, is an everyday expense, one that you feel the pinch on each time you fill your cart. And since we do often eat more than we really need, it's an obvious place to save. Does this jibe with what's going on in your household? [via Sullivan]
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39 Comments:
I am buying all of my meat on sale. It makes grocery shopping an adventure. I start with the meat and make the grocery list on the spot. I also make sure that whatever it is will feed us more than once. I am multitasking my rotisserie chickens and now they are entree once, bbq pieces on pizza or mexican chicken on nachos and stock for chicken noodle soup. We have a meatless meal a couple of nights a week: my favorite is bean and cheese chalupas but pastas with pesto or almost any sauce are awesome. I shop at Sams and Costco and have a huge garden in the works this year. Also, I have a new Kindle 2 and have ordered the free Cook's Illustrated for it which will make grocery shopping even more interesting.
ocarol at 10:24AM on 03/04/09
I spent 20 bucks on food for myself at the grocery store this week, and I'm trying not to spend any more. It's hard, though: I can easily spend triple that amount if I'm cooking for friends or baking, which I do most weeks. But I felt the need to chill on the bake-fests, both because I need to detox a bit and because I need to save more.
tori_t at 10:24AM on 03/04/09
Spending less does not necessarily mean eating less—a decline in spending could mean people are buying processed food for cheap instead of meat, produce etc.
Check out the Klatch on egullet about "eating down the pantry" for good ideas for cooking with what you already have.
maggiej at 10:32AM on 03/04/09
Hm...no, not really. I may have changed the way I shop, in fact, I have changed the way I shop (e.g., started doing things I didn't do before - check circulars, pay attention to sales and specials, etc.), but food will probably be the last thing we'll cut back on. We don't really eat more than we need to (I'm not even sure I understand this, there is so much a person can it, no?), so cutting back would be on quality, not quantity, and I don't see it happening.
Interestingly, growing up, we weren't rich, by any means, but we always ate well (and by "well", I mean, good home-cooked food made from quality ingredients vs. loads of cheap junk).
brooke29 at 10:35AM on 03/04/09
I've been a big Costco, Sam's Club and BJ's shopper for years. Plus we eat mostly homemade and not as much processed as some people do. So our habits haven't changed much. I too try to incorporate a few nights a week of no meat, no chicken, no fish meals. Where I am changing my habits is researching ways I can go more on my patio.
We live in a condo and do have a yard, but are not allowed to plant a garden. So I have had some herbs growing in the mulched areas for 4 years now. Last year we did containers for tomatoes and some chilis. This year I am planning more. I bake more bread now also.
For years I've made my own beer and wine., but we did recently stock up on a few whiskeys and gin as we fully expect the luxury tax to go up on those items.
Ezzie at 10:43AM on 03/04/09
One more thing. I forgot to add that I also have been canning and dehydrating for "ump te ump" years. I think people should go back to those skills.
Ezzie at 10:45AM on 03/04/09
@maggiej: Yes! We've been shopping in the pantry, fridge and freezer for stuff we can cook. I merely intended to use a lot of things for too long. They're getting used now. Also, we're trying not to eat out very much. We are feeling the pinch, as I'm waiting on a new contract project to start and the DH had to take a mandatory furlough this week. Zero income this week.
Susquehanna at 10:50AM on 03/04/09
I think that the majority of US citizens won't see their diets improve even if they do start spending less at the supermarket. Peanut butter with added fats and sugars is usually cheaper than an organic, no additive peanut butter; hamburger meat is cheaper when more fat is added, the cheapest pasta is the stuff that is all carbohydrate, not the whole grain kind, and so on.
elisabeth58 at 10:58AM on 03/04/09
Do you think that this may include restaurant income? Perhaps part of the decline means people are cooking at home more...
CityMinx at 11:02AM on 03/04/09
I've been doing like Susquehanna, and shopping out of my freezer and pantry for the past month. I too started this mainly because I was trying to use up things that have been there too long, but it definitely does help save money. All I've really been buying the past couple months is fresh produce and dairy. Although I admit, I can't wait for when I've used most of it up, and can buy more fun things!
kimberlymac at 11:03AM on 03/04/09
@maggiej can you share the link for the "Eating down the pantry" info? thanks!
spartana07 at 11:20AM on 03/04/09
Definitely. Other bills have skyrocketed into orbit, necessitating cutting back on everything. My freezer, once stocked with buys on poultry, beef, pork, etc., is now filled with frozen bread starter, bananas, butter and a ton of homemade stocks and broth. My pantry is not stocked with backup flour, sugar and cocoa anymore, and my refrigerator is probably the leanest it's been in years. We are also eating a lot of homemade bread, pasta and dishes with rice, legumes and other grains. Fish is a luxury, and chicken is now a mainstay. I might serve beef twice a month now. It has definitely had a major impact on how we eat. I'm exercising three times as much now, to burn off all of the excess carbs and maintain my weight.
Boscompb at 11:21AM on 03/04/09
My parents always said to skimp on buying new clothes, skimp on buying new stuff, etc., but never skimp on groceries. They said to always buy good groceries--paired with eating out less and that will save you money.
It makes sense. If I buy good groceries that I want to cook and eat, it actually makes me WANT to eat out less. Which is also a calories savings.
inothernews at 11:23AM on 03/04/09
I also think when people panic about money they do it in the stupidest ways. They'll cut back on their medicines and food but still buy stupid small stuff that adds up to a whole lot of money. I guess it makes them feel like they are saving? I don't know...
inothernews at 11:24AM on 03/04/09
We are definitely eating "out of the pantry" more than before. I never went out to lunch a LOT, but I did regularly go a couple of times a week and now I almost never do, I just bring that old can of soup that's way in the back. We're buying a lot more things in cans than fresh, it's cheaper and they're not that bad, and getting more creative about what we can make/eat with what we have on hand instead of going out or picking up takeout.
mr. rockandroller doesn't know it, but I've also been having us eat less meat; all my "suggestions" and things I prepare to take for lunches are often meatless or maybe have canned tuna. We have even used canned chicken (horror!).
I refuse to give up my cable, it's $40 a month and is our sole form of entertainment. There aren't many other places to cut; neither of us get coffee out or have clothes dry cleaned or any of those other "extra" things they're always telling you to cut out - I've never even had a pedicure and the last time I had a manicure was for my wedding 6 years ago, we almost never buy any new clothes, so this is the only place to make cuts.
rockandroller at 11:36AM on 03/04/09
My GF and I have saved a lot of money by eating lunch at home. We used to go out for lunch every day, to the tune of about $125.00 a week. Now we spend just a fraction of that for our lunches. We enjoy leftovers, soup 'n' sandwiches, and simple fare. As a bonus, I've lot ten pounds in the last couple of months. We also watch for sales, especially on meat, and almost always take advantage of the "buy one get one free"offers.
1stmakearoux at 11:37AM on 03/04/09
We've been eating out at restaurants more the past 3 months or so.
Our grocery bill is still the same, despite eating out more. I think it's because we're spending more on ingredients. My job is to pick out dishes from recipes books or online for our meals, and my husband's job is to buy the groceries and cook. He got tired of deciding what to cook and I have no gauge what is / isn't on sale.
I only buy clothes for my husband and I when we need to - if there's a function, clothes are worn, etc. It's a pain for me since I have to go to the tailor to get all of my new clothes fitted.
I think our $$ black hole is on our dog, cat, and ferret, quite honestly, going to the vet every month, shots, litter, medication, food, toys, treats, chewed up leashes, grooming, etc. I can't imagine it being the 70 mile round trip we take every other day to Sonic for cherry limeades contributing to it or $20/week at the neighborhood cupcake shop. :P
Cassaendra at 11:55AM on 03/04/09
Caessandra, how is it that you have no gauge on what's on sale? Most grocery websites have their ads online, and some even have coupons. (Although I find that I save more than the cost of my newspaper subscription with the coupons there, but that may be generational.)
lemons at 12:52PM on 03/04/09
As if Americans could afford to invest less in their food sources -_-;
Aren't we already one of developed countries that spend the least percentage of their income on food?
Food spending hasn't changed in this house, in general we've never seen our bill be so astronomical that we felt that trimming was required. We even still help ourselves to some treats from super expensive Mitsuwa now and then. We buy whole produce, meat, seafood, condiments, pantry staples at Asian markets/Chinatown where they tend to be very fresh and comparably cheap.
When we do go to the regular supermarket for quick pickups of milk, eggs (at least a dollar cheaper at the Asian market, this...), flour, sugar, coffee and the such, I can see how the bill can rack up, though.
If anything, we've cut back on clothing and other luxury expenditures. If we start cutting back on food, it means we're in REALLY dire financial straits.
fuuchan at 12:58PM on 03/04/09
I am not really spending or eating less than I used to. I for one have been concious of how much I eat and spend on food so it is not like this economic downturn is really making me rethink things.
FrostyGhost at 1:17PM on 03/04/09
I'm buying less at the grocery store and paying more. It's rather frustrating when I want to try my hand at more recipes, but what can you do?
PeteRepeat42 at 1:51PM on 03/04/09
We don't budget for food per se but we do economize by buying in bulk and catching sales. I always stock the food the same way. Have been doing it forever this way. I buy local and seasonal and freeze a fair amount. I look over circulars and stock up on those things that are bargains. I shop Costco and BJ's and cook in advance and freeze.
I have a two pantry system. One in the kitchen and then two small holding areas one in the garage and one in the basement for overflow. I keep everything I need in bulk.
When I run down to the last few, I buy more.
I have 2 refrigerators and a trunk freezer. With prices on appliances going way down now is the time for you to get a second fridge or a freezer. This is another holding area for your stock.
Do I spend less money? No. Do I think I save money? Yes constantly.
You have to know your prices and know if a bargain is a bargain.
Mr Tomato actually helped save money last fall when I changed his diet. I measure, weigh and pack all his lunches. This saved on those business lunches he was always getting in town. Now he has to eat what I pack for his cholestrol issue he actually is much healthier anyway. So inadvertently he helped save money. I still go to Wegmans and Trader Joes at least once a month. Many luxury items there. We don't budget for food per se but we do economize by buying in bulk and catching sales. Once summer hits I will buy much of my produce local and that is a huge savings.
Being a smart shopper is work. Not everyone wants to do the work.
JerzeeTomato at 1:53PM on 03/04/09
I use the freezer more now; always shopped at costco and trader joe's and such, but also more expensive grocers. Now I try to limit the big expenditures, get some things on sale that I may not need right now, freeze and make up dinners and such as I go along. It has been quite fun and rewarding to see what I come up with. I always make soup every week and some other staple meals to take for lunch or snack on, so yes, I have changed the way I shop.
peuporcin at 2:21PM on 03/04/09
I regularly check the sales fliers and use coupons. If pasta Barilla is on sale, I'll stock up. If not, I'll buy the $0.92/lb pasta at Target.
No shrimp anymore. Only chicken. And only one breast each...though BF would probably like a little more.
No San Marzanos. Only regular whole peeled roma tomatoes.
No wine. Sometimes beer, though.
BF likes cold cuts, so I'll buy whatever is the cheapest minimally processed item each week (roasted turkey, baked ham).
Kerosena at 2:32PM on 03/04/09
I'm eating at home more often but it wasn't purely a financial or health-related decision. I hated the kitchen in my last place and HATED using it. In the place I moved to in November, I love my kitchen (just wish it was a gas stove) and so I've started cooking again. At first my grocery bills were higher because I'd run out of so many staples but it's not too bad now. My restaurant expenditures are way down since I'm eating dinner out or getting take-out only once a week (compared to 5 or 6) and I pack leftovers for my lunch every day except for the one day when a colleague who normally works from home is in the office. I can definitely feel the money savings in eating at home which is good because I pay more in rent now than I used to and my car is on it's last legs and will need to be replaced soon.
One of my biggest savings has been not getting snacks and sodas from the vending machine or the convenience store. I stock up on big packages of pretzels and stuff from Costco and make my own snack mix to take to work. I've been drinking more water from the company water cooler and mixing in powdered drink mix when I want it sweet or buying soda by the case and bringing it from home. Every little bit helps.
CooksForOne at 2:48PM on 03/04/09
We are so cutting back. Miss my shrimp and wild salmon terribly.
bessfour at 2:55PM on 03/04/09
We asked food bloggers how they were cutting back in the kitchen, here's what they had to say.
Chew on That at 4:57PM on 03/04/09
@lemons: It's more for a lack of caring that I don't know what's on sale.
If I'm craving shrimp and green beans, I'll scan for shrimp recipes and green bean recipes, then email my husband what I want -- either the recipe (online) or the recipe book and page # -- if it's something new. If it's something he's cooked a million times, I'll just tell him I want, say, jambalaya.
I can't do poultry, even to save money. My xbf burned me out on chicken that I can't stand it, esp. white meat, and I've disliked turkey for quite some time because of the metallic flavor - call me crazy.
I'd rather eat half as much of what I love to eat than subject myself to food I can't stand to save money.
Cassaendra at 6:33PM on 03/04/09
Absolutetly I'm cutting back on food costs, I'm trying to cut any costs I can with me being the only income for me and my kids. I buy fresh, and healthy as I can... and I shop sales and stock up when something I use goes on sale.
Cutting back is definitely helping me cut back on calories/fat too... they are going together... no money for fast food, makes it a lot easier to make a sandwich on whole wheat and bring it to work with me.
Karee at 7:07PM on 03/04/09
i almost never eat out anymore. i pack my lunch every single day and cook myself dinner pretty much every night. i'm definitely not buying treats the way i used to -- goat yogurt from trader joe's at 3.99 a quart will suffice, instead of a tiny container of siggi's for 2.69 from whole foods.
i'm definitely more careful about what i buy and where i buy it, and try to use up what i have in the refrigerator. and i'm trying to make things that i would have bought, like bread, crackers, and hummus. i'm also experimenting more with legumes and whole grains. i gave up eating meat a while ago.
but i still get organic and the highest quality of things that i can find.
cybercita at 11:20PM on 03/04/09
I've probably eaten out 4 times in the last 30 days. I have also lost about 4 pounds this month. Connection?
Michele Humes at 1:39PM on 03/05/09
I am doing the eat down the pantry thing myself - and its working well - so well, I had to acknowledge that my pantry was kinda scaggy and CLEAN it out two weeks ago! I work at home, so eating out is not a huge thing for me - but I'm really trying to cut down on waste by eating up all the leftovers - even when I'm not in the mood for what's in the fridge. I have always bought in bulk, shopped meat sales religiously, and have a large chest freezer. I've instituted veggie meals at least once per week, cut out expensive seafood and am busy planning an expanded container garden for my front and back porch for summer.
Maureen at 2:14PM on 03/05/09
@Maureen: Good idea re: expanding your container gardens. I'm planning a raised-bed veg garden right now so we, too, can save on produce over the summer. Just bought seeds to start sowing in late March/early April for mid-May planting. This will be my first non-container garden, so wish me luck. I'm in for a battle with the varmints.
Susquehanna at 3:43PM on 03/05/09
I was trying to keep the food budget down to $150 a week for 2 adults, while shopping at Trader Joe's, Uwajimaya and Safeway. Now I've discovered Grocery Outlet (yay!) and I'm intent on keeping it below $100. This includes beer and wine and pet supplies of course. It is completely do-able. I am into using what's in the pantry instead of stock-piling (um). It means that I am doing more cooking, including larger portioned dishes that can feed us for 2 dinners or more. Very economical, cash and time wise. Plus if we can just shop when we really need food and not just because its Saturday....
Pointy at 9:13PM on 03/05/09
I'm actually spending more on food than I used to. Not because I'm buying more food but just because the prices on everything have gone up. Anyway, I don't think food is the place to cut corners. There are so many other things which can be cut back on.
americandesi at 3:09PM on 03/06/09
We're actually eating out more...we get two-for-one pizzas on Wednesdays as well as a free appetizer and two-for-one cinema tickets. It's like a date night.
We're also lucky enough to be a part of an allotment collective. For those who may not know, allotments are pieces of land owned by the nation but rented to individuals here in the UK (for a nominal sum, about £12 a year). Our allotment is about three by ten meters. We divide up the work amongst each other...one guy can grow berries that are unbelievable, one woman is brilliant with tomatoes and leeks. I'm on potato, onion and garlic duty this year. You come and take what you want, or else find a box of mixed produce outside your door.
We also have a big canning and jam-making party every year. Our landlords have an Aga and a regular cooker, and we all bring desserts and wine.
If you have a patch of grass that gets sun, you can grow veg. If your neighbour does too, you can swap. Better than ending the year with a box full of courgettes and aubergine you don't want.
NotAmerican at 12:12PM on 03/07/09
Food prices have inflated ridiculously over the past 8 years, far beyond the price of everything else. The claims that importing from cheaper countries keeps prices low are farcical. I doubt that the decline is people cutting back on more fattening foods.
Of course there have been more affluent and middle class people (at least in the past) eating too much, but much of the causes of obesity, including that of poor children and incidences of childhood diabetes among the poor, are due to NOT being able to afford adequate amounts of produce, adequate protein and a reliance on starchy foods to provide empty bellies a feeling of fullness. Anyone who wasn't familiar with the food stamp diet experiment the MSM didn't report adequately on, from a few years back, three members of the house of representatives restricted themselves to the average amount an individual on foodstamps would be able to spend on groceries per week, $21 dollars. They proved that this substandard, unhealthy diet, left them tired, headachy, weak and always hungry, with the unexpected result of actually gaining weight.
It's been known for almost a decade, that the rates of anemia, among poor citizen women, and malnutrition among poor citizens, male, female and children are higher than they were during the great depression, and that only reflects those who were actually seen by a doctor.
While there is so much discussion about poverty in other countries, those who like to claim advocacy have ignored the poverty that exists in each of our backyards. I read a comment on a blog the other day, where a woman sneered at poor American citizens, claiming that compared with the poor in the third world, poor American citizens live like wealthy people. Her lack of thinking was insulting and ignorant, especially coming from someone who has never experienced hunger, let alone the suffering that is all around us. In the US, the poor citizen still has to pay first world prices. If they can afford an apartment, while it's no doubt better than the housing in your average third world country, that doesn't change the fact that it's frighteningly harder for that poor person to keep what is a much needed roof over their heads. They are discriminated against in their pursuit of and ability to keep employment. To adequately feed themselves, they are more likely to be denied access to even basic health care. We have tent cities springing up around the country, even in what has been a desperately cold winter.
Mares at 10:48PM on 03/07/09
My boyfriend and I have always had a food budget - $200 for the both of us, not as far down as we could get it if we were really trying, but not huge either. Still leaves room to try new things, too. However, in the past couple of months it's gotten really hard to keep within budget, so we've been eating a lot less meat.
katalyst23 at 11:46AM on 03/09/09
I've turned toward cooking even more Mediterranean foods (lots of veggies with lovely herbs). And, when done right, home cooked Indian food is not only fabulous and healthy, it's WAY affordable.
ellenmoriah at 7:10PM on 04/20/09