With rising take-home pay, many Americans are skipping cheap-but-bad dining and retail experiences

The useful part

KIFI Home News Idaho Falls News Rexburg News Pocatello News Idaho Wyoming Utah Crime Tracker US/World Community All-Stars Scam Alerts Pocatello Police Shooting Vallow-Daybell Coverage Teton Dam: The K-shaped economy is narrowing, and a growing number of Americans have moved up the income ladder. They actually have more money to spend and are being choosy about where they spend it.

How it works

• With fatter paychecks, customers are rebelling against the chains that serve up shrinkflation and replace workers with broken self-checkout machines and touchscreen kiosks.
• Hottovy, head of analytical research at Placer.ai, a company that tracks foot traffic at stores and restaurants.
• "They don't want to show they're trading down." Customers' standards have gone up, and chains have to raise the bar to hold on to them.
• "We knew stepping into the year we had real work to do to make sure our experience was consistently elevated," Target CEO Michael Fiddelke said on a call with reporters Tuesday.
• Similar trends are playing out at fast food chains and sit-down restaurants.

What to take from it

They want bigger, better burgers at fast food chains, a fun time when they go out to eat and modern stores when they shop. "People are willing to pay a premium if they feel like they're getting their money's worth," said R.J. Customers were leaving, switching to Walmart's spruced up stores and improved online delivery.

Example or evidence

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• Business/Consumer By CNN Newsource Published August 19, 2026 4:40 AM By Nathaniel Meyersohn, CNN New York (CNN) — Conventional wisdom says that American consumers are struggling and they're hunting for the...

Details worth keeping

They're done eating and shopping at places that suck. They constantly have to roll out new products and improved experiences. It was missing key products on shelves and had long lines at checkout.

Related coverage

• Moneytalksnews: A 50-year analysis finds pay outpaced inflation by 73%, yet college, health care and housing costs quietly erased those gains for many.
• Marketwatch: Recent earnings results suggest that the typical shopper is 'employed, still spending, and increasingly disciplined about it.'
• Investmentwatchblog: American says this is his last time ever going to the Waffle House The prices have increased so much he simply can't afford it anymore.
• Inc: Consumer barometers are increasingly a gauge of equity investors.