The growth of consumer debt is becoming a burden to the restaurant industry.
Apple-Metro CEO Zane Tankel told FOX Business the concerns surrounding consumer debt are making restaurant patrons conscious of how much money they are spending.
“Consumer debt has a direct relationship of dining out and how much you spend,” he said on “Bulls & Bears” Thursday. You may continue to dine out where you pay, in our space…fifth dollars for two people, maybe they are spending forty for two people or thirty-five because they are concerned about consumer debt.”
U.S. consumer debt hit $14 trillion in the first quarter of 2019, reaching beyond levels during the 2008 financial crisis.
President Trump touted the strong U.S. economy as July retail sales surged. Walmart also signaled optimism in consumer confidence in its earnings report, easing fears of a recession. The retail giant topped earnings estimates, reporting profits of $3.61 billion, or $1.27 per share, on revenue of $130 billion.
“Walmart announced, others announced. We had some tremendous numbers come out today which I am sure you saw. So we are very happy about that,” Trump told reporters boarding Air Force One on Thursday. “We're doing very well. The economy is incredible. The consumer, probably above all else, the consumer is doing incredibly.”
But Tankel the restaurant industry hit incredible headwinds in July and he is concerned the consumer will latch on to the recent recession chatter.
“Uncertainty is always difficult for anything and everybody and these are working folks,” he said. Our guests of which are about 200,000 a week, they work really hard for their money.”