As income increases, where people spend their Food Away from Home (FAFH) dollars shifts. Lower-income households (under $35,000) direct nearly half of their FAFH spending to fast food, while higher-income groups (above $200,000) allocate just 28% to fast food and 64% to restaurants.

This pattern is consistent with service as what economists call a “normal good”: as income rises, consumers demand more of it. Thus higher-income consumers spend more money and a bigger share of their food budget on FAFH, and also spend more money and a bigger share of their FAFH budget in restaurants that provide more service.

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