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Faced with rising labor costs and increasingly price-sensitive customers, restaurant brands are exploring new ways to balance profitability with consumer expectations. One of the most debated strategies is dynamic pricing, which adjusts based on demand and other variables.
A good example of this type of AI automation is a project we recently completed with a national coffee brand. In 2024, food prices have been high and consumer spending has been stretched thin, making it even more difficult for restaurants to attract new customers.
While overall interest in AI-driven restaurant features remains low, loyalty is increasingly influenced by personalized promotions, according to the Summer 2025 Consumer Trends Report from Provoke Insights in collaboration with Modern Restaurant Management (MRM) magazine. This was only topped by grocery store increases at 79 percent.
Dynamic pricing would add friction to the guest experience, according to Capterra’s 2023 Dynamic Pricing in Restaurants. Sixty-five percent of consumers say dynamic pricing would make the decision of where and when to eat more difficult; 63 percent say it would make it harder to budget their restaurant spending.
-based diners who recently ordered from a QSR, fast-food or fast-casual chai also found that value is about more than just price. For the third year in a row, consumers want more kiosks. Brand loyalty has also shifted significantly, with 33 percent of consumers saying their favorite QSR or FSR brand has changed within the past year.
Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.
Today’s diners expect more than just good food—they seek environments that captivate, connect and surprise. Mintel’s 2024 Global Consumer Trend ‘Relationship Renaissance’ revealed that coming out of the pandemic, consumers expressed an eagerness to seek connection with purpose.
The entire foodservice industry is being reshaped due to a global shift in consumer behavior prioritizing value, quality, and flexibility, according to the latest Circana™ research that found value-based deals are driving 54 billion global foodservice visits annually. "Value yuan meal deals proving particularly popular.
Striking a balance between value and price. As inflation continues to pummel businesses and consumers, QSRs are searching for ways to make their menus work harder. At the same time, consumers are looking for ways to stretch their dollars. Is it possible to strike a balance between value and price to satisfy both parties?
The unfortunate answer is price increases in general for both food and drink and narrower margins than already experienced by restauranteurs. Most of these increases in costs will be passed on to the consumer by higher menu prices. Tariffs on agave products from Mexico could see significant prices increases.
Steady Online Ordering Brings Food Waste, Donations to the Forefront of Priorities Ordering food online increases restaurant sales, but it also can potentially increase wasted food if proactive measures aren’t taken – for both the business and consumers at home.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
Segments like the College and University sector are attempting to plan budget for FY 2026 and are not able to get reliable pricing from their partners across the supply-chain. ' No wonder consumers are becoming more resistant to eating out.” ” Higher tariffs will certainly cause prices to rise for U.S.
A Dilemma of “Super Size” Proportions Amid rising food prices and shifting consumer preferences, the restaurant industry is facing a dilemma of “super size” proportions. percent menu-price inflation rate. Customers can become more critical of the quality of products and services when prices increase.
We deal with highly perishable goods, unpredictable customer behavior, swinging door staffing, and constantly escalating cost of goods. Restaurants get hit from all angles so when there is a chance to push the envelope on pricing – many do. These are the restaurants where dining is much, much more than just consuming food.
20, 2025 Facebook Twitter LinkedIn Consumers are finding value in casual-dining brands like Olive Garden. The chain has kept its menu prices lower than inflation, and it has invested in other limited-time specials, such as its popular Never-Ending Pasta Bowl, in an effort to appeal to price-conscious consumers.
Five years have passed since the pandemic upended the restaurant industry, and its effects continue to shape consumer behavior. Revenue Management Solutions (RMS) explored these questions in its latest consumer report, Adapting to Change: How Restaurant Trends Have Evolved. Are people dining out more or less? With 53 percent of U.S.
Get Smart on Oil Consumers are turning their attention to the individual qualities and applications of oils. From eyebrow-raising splurges and quirky simple essentials to cultural events and TikTok trends that pushed consumers to hit “add to cart,” I thought this would be of interest to you and your readers!
Here, Huang explains how business has changed since going brick-and-mortar and how hes kept prices low over the past five years. With price points and check averages under $20, it simply isnt enough money to cover the operating expenses in New York, so we needed to be more sustainable to a degree. We literally just raised prices by $1.
For generations excellent meant complicated, intense, all-consuming, and sacrifice. Wine lists that resemble an encyclopedia of the wine making craft are just the price of admission. The price they pay is a lack of balance in their lives, relentless stress, and always concerns about when their star will lose its shine.
Restaurants hoping to make a positive impact on the climate face an enduring challenge: selling their ambitious goals to diners simply looking to have a good time This story was produced in partnership with Civil Eats. More consumers than ever expect restaurants to pursue environmentally conscious practices. without interruptions.
The National Restaurant Association’s Restaurant Performance Index (RPI) demonstrates that a combination of inflation, consumers with less disposable income and rising labor costs have created a difficult market for restaurant owners. That’s why good insurance coverage, provided by a trusted, experienced agent, is critical.
Fast food chain Wendy’s has announced plans to test “dynamic pricing” at its locations across the country, beginning in 2025. According to CNN, the move is a part of the chain’s $20 million investment in digital menu boards, which will allow it to tweak the price of a Biggie Bag or Frosty in real time. If so, you’re in luck!
As the C price remains volatile, reaching record highs earlier this year and recently settling below US $3/lb, commercial-grade coffee has taken a significant hit. Or conversely, will more consumers opt for cheaper alternatives, curb their consumption, or stop buying coffee altogether? lb in February 2025.
Around the world, headlines are warning consumers that a sharp increase in coffee shop prices is a real possibility. Talks of the AU $10 flat white and “ the era of the £5 coffee ” are becoming increasingly common, causing some concern among consumers grappling with the cost of living crisis.
Record-high inflation is hitting consumers from every angle – gas, groceries, rent – and restaurants tend to be the first place they cut spending. The lingering pressure from inflation – with no end in sight – is starting to shift consumer behavior in meaningful ways. Effect of Inflation on Consumer Demand.
Operators need to consider what it takes to accomplish their topline revenue goals in parallel with cost control and waste elimination, ensuring they consistently deliver a high-quality food product to the end consumer that is predictable and traceable. Tracking Supply Chain Flow. Creating a Singular Journey.
As a result of their rising popularity, the price of these oceanic creatures has also risen. And while some may chalk these sometimes eye-popping prices up to historic inflation or price-gouging on the behalf of restaurants or their suppliers, the factors that go into oyster pricing are actually much more complicated than that.
17, 2025 Facebook Twitter LinkedIn Convenience-store pizza edged out chain pizza in a survey of consumer taste preferences. What’s more, 72% of consumers said they now see convenience stores as a “real alternative” to quick-service restaurants, up from 56% last year and 45% in 2022, Intouch Insight said. By Heather Lalley on Jun.
Shares of major quick-service restaurant (QSR) brands experienced double-digit drops, consumer confidence declined, and traffic at fast-food restaurants was down by 2.1 percent YOY) and throughout 2024 were primarily due to price increases, which have surged nearly 50 percent in some segments since the pre-pandemic era and were still up 3.0
Lets take a look: [] RAISING THE BAR Consumers dont know what they dont know, until they know what they didnt know. Untilan artisan bread baker enters the market and shows consumers just how good bread can be. Once introduced to a remarkable product, consumers are less inclined to accept what had been the norm.
According to an 84.51° study, 74 percent of US consumers under 35 snack at least a few times daily. Pairing seasonal ingredients with seasonal applications will maximize consumer interest in their menu." "Now more than ever, consumers are seeking more value menu options. ."
With both restaurants and guest feeling the effects of inflation, tipping has become a topic of confusion and intrusion for diners, according to Restaurants: Consumer Trends Fall 2023/Winter 2024 , a report produced by Provoke Insights in collaboration with Modern Restaurant Management (MRM) magazine. 15 or 20 percent).
Coffee prices have soared over the past few years, pushing roasters, independent cafés, and specialty coffee retailers into challenging territory. For roasters and coffee shop owners alike, raising prices is no longer a choice but a necessity. Why are coffee prices staying so high?
Customers displayed a pronounced preference for flexibility, seeking the capability to modify loyalty programs in response to evolving consumer trends and demands. Customers displayed a pronounced preference for flexibility, seeking the capability to modify loyalty programs in response to evolving consumer trends and demands.
For BevAlc buyers, price point as a function of quality, although always important, will become crucial over the coming months and years. Finding the right balance of what local guests want, at the maximum price point and minimal cost could be the difference between surviving and closing the doors. The first important factor is margin.
Restaurants and customers are feeling the effects of inflation, according to the third quarter 2022 data for the Yelp Economic Average (YEA) report, The report reveals that inflation experiences have intensified for consumers in every state in the U.S. year over year, with reviews mentioning inflation up by 22 percent compared to Q3 2021.
Today we will take a look at how disintermediation of the guest has impacted hotels, airlines, real estate, movies, and consumer packaged goods. These models both revolved around delivering service in a restricted capacity space based on asynchronous consumer decisions to visit.
Many brands have been experimenting with new technology to help reduce the demand for labor and combat recent price inflation. Smart menus and app-based ordering are examples of platforms that allow brands to relay information to customers in real-time, saving time and resources in communicating or justifying a price change.
In 2024, restaurants across the country saw an average five percent increase in transactions and an average eight percent increase in profits with only four percent caused by price hikes. Additionally, consumers continue to favor delivery transactions, which are up by 383 percent since 2020. percent from 2025 to 2033 and reach US$ 345.6
Everyone in the food industry is feeling the pinch of the economy with reduced consumer patronage in restaurants and even a reduction of produce consumption in the winter months. Having many team members mean there are many salaries being paid and those salaries are accounted for in the service price.
But as we enter 2020, it’s important to recognize how digital technology drives our society and its major impact on consumer reactions and ordering habits. If the food looks good, they are more likely to drop some hard-earned cash on it. So how can digital signage enhance your restaurant? Opportunity to Upsell.
As consumers continue to feel a greater sense of normalcy, many pandemic-related concerns have started to subside. If services such as mobile ordering are here to stay, it’s important to understand the role they play in the relationship between brands and consumers. Set the Bar. Strengthen Customer Retention.
The pandemic forced restaurants to adapt to not only a new, leaner business model but also to new consumer behavior. So what makes a good contactless menu? A good mobile experience. The good news is that it’s never been easier for restaurants to design professional-looking, state-of-the-art online menus.
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