RBC Capital Markets' May Restaurant Spending Survey -- which tracks planned spending in restaurants among more than 1,000 consumers -- showed its biggest increase since November 2006. 

The National Restaurant Association (NRA)'s Restaurant Performance Index -- the monthly composite index tracking the industry's overall health based on surveys of restaurant operators -- has been creeping up since January.  May was its highest level in 11 months.   The growth was driven by the Expectations sub-index -- which rose above 100 for the first time in 18 months.

Is this good news or bad news for the housewares industry?

Some will see it as bad news.  If consumers start eating out more often, it means, by definition, that they are preparing meals at home less often.  Which means that they may be less likely to need new cookware, small kitchen electrics, and kitchen tools and gadgets.

I see it as good news because it means that consumers may be feeling a little bit more optimistic about the economy.  And if they are less worried about what the future may hold, they may relax their grip on their pocketbooks a little bit. They may be a little bit more likely to spend some of their hard earned dollars rather than squirreling them away in case things get worse.

They may be planning to eat out a little bit more than they did earlier this year but Americans are not going to go back to their old ways of spending as they have in past recessions.   There has been a paradigm shift in attitudes about what is important in life.  What is important in life is family, friends, health, and relationships.  They are eating at home more often not just to save money; they are eating at home more often because they want to eat healthier.  They are entertaining at home more often not just because they can't afford to entertain in restaurants; they are entertaining at home more often because they are remembering how much fun it is to entertain at home.  And that is good news for the housewares industry because when Americans do start spending again, they will be spending on meal preparation, at-home entertaining, and home improvements.

Riedel Marketing Group's 8th annual trend report, Housewares TrendTracker 2009, provides in-depth information about the trends that will be impacting the home goods and housewares industries over the next several years. The consumer trends that will have the biggest impact on housewares and home goods manufacturers and retailers all tie back to the recession, how Americans are reacting to the economic downturn and what they are spending their money on.  Contact me for more information on Housewares TrendTracker 2009.