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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. They were asked to place an order from an online restaurant.
At the same time, a rise in fast-food prices driven by inflation is reshaping consumer behavior, with many customers now treating fast food as a splurge rather than a convenience. The future of dining will center on creating smarter, simpler, and more personal experiences for customers.
Rising restaurant prices and increased cost-of-living expenses are significantly altering dining out habits in both the US and UK, according to a new survey from Attest. Among the key findings affecting restaurants: Price Sensitivity : 86 percent of consumers in both the US and UK feel restaurant prices are higher than last year.
. “This enduring customer loyalty drives the restaurant industry forward, creating clear opportunities for restaurants to enhance the dining experience through strategic limited time offers, efficient delivery and exceptional in-person service," said Samir Zabaneh, CEO of TouchBistro.
In 2024, restaurant traffic slowed while price sensitivity grew. Revenue Management Solutions’ (RMS) Q3 survey revealed that 36 percent of respondents said they plan to dine out less, and a higher percentage reported a decline in dining out across all restaurant segments. Some customer segments will continue to dine out.
Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.
"While technology has the potential to enhance the dining experience, the research shows that AI integration isn’t a top priority for most consumers,” said Carly Fink, President, Head of Research & Strategy for Provoke Insights.“Patrons This was only topped by grocery store increases at 79 percent.
“Every guest touchpoint–whether it’s a dine-in experience, an online order, or even a response to a review – can influence future business,” Mike Eng, Senior Director of Vertical Expansion at Klaviyo, told Modern Restaurant Management (MRM) magazine.
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.
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. The restaurant experience was once solely comprised of human-to-human, in-person experiences. Fast food and food delivery gradually began changing that equation.
Has consumer dining behavior returned to pre-pandemic levels? Dine-in is down an average of almost 50 percent compared to 2019. The data also supports what RMS has been advising: pricing must be strategic. Avoid across-the-board price increases. Stay informed about where your menu prices fit with the competition.
One of the more popular solutions to helping a business thrive is dual pricing credit card processing. One of the more popular solutions to helping a business thrive is dual pricing credit card processing. What is Dual Pricing? When a restaurant offers dual pricing, it maintains 100 percentof the cash price for every item sold.
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.
Aside from improving restaurant customer experience , market research also helps you make informed decisions about location, pricing, and marketing strategies. You can identify potential gaps in the local dining landscape and create unique value propositions. A data-driven approach gives you concrete insights to make strategic choices.
Other restaurants are integrating AI into reservations, guest messaging, and even menu pricing—helping them react to demand in real time. It’s about taking friction out of operations—so staff can spend more time focused on hospitality, not paperwork. Artificial Intelligence doesn’t necessarily mean human-like behavior.
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.
In an earlier survey on app usage ( Q1 2023: Restaurant Apps, Loyalty Programs and Dining Choices ), RMS found that a majority of respondents had at least two restaurant apps, and nearly 40 percent of frequent users had more restaurant apps than the year before. Restaurant apps need to run seamlessly, but so do in-store operations.
Some brands may consider that they can offer an experiential focused bar menu for a more approachable price point for the consumer who may not opt for a full dining experience. This insight celebrates creativity and boldness, turning dining spaces into visual playgrounds that connect with their diner.
What can you expect to see on menus in 2025? Read on for predictions from industry insiders that include chili crunch, black limes, newstaglia, stealth health, and elevated snacking. ” Guests will have the opportunity to experience many of these trends come to life at Kimpton restaurants and bars across the globe.
This represents a larger increase than those increasing visits to fast-casual (14 percent) or full-service (11 percent) restaurants and is on par with those visiting QSRs more frequently (24 percent) ( RMS Q1 2025 Dining report ). Adding pressure, price perceptions remain high. That doesn't always mean lower prices.
While two-thirds of guests say they would not dine at a restaurant that uses dynamic pricing, interest increases when the concept is framed as a discount offered through a membership for off-peak hours, according to the Summer 2024 Consumer Trends Report from Provoke Insights in collaboration with Modern Restaurant Management (MRM) magazine.
In the modern dining landscape, where convenience and customer experience are paramount, restaurants increasingly rely on electronic payment systems to facilitate transactions. For restaurants, especially those operating on thin margins, these fees can influence pricing strategies, profitability, and even operational decisions.
Restaurant owners looking to purchase an existing license can face prices up to $1 million depending on demand. This trend highlights a shift in consumer behavior, with dining places increasingly seeking unique experiences rather than just a meal. Opening a restaurant in competitive markets like South Florida is no easy task.
based diners who recently ordered from a QSR, fast-food or fast-casual chai also found that value is about more than just price. At the same time, 21 percent say they’ve increased their budgets in 2025 – showing that while some are pulling back, others still see dining out as a worthwhile indulgence.
Of course, running a restaurant is difficult, wholesale prices of ingredients have risen dramatically since the pandemic, labor costs are out of control, and landlords have no mercy when it comes to establishing lease arrangements. That’s 21 meals for two people over seven days. Do the math. So, what does the independent restaurateur do?
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.
at the Italian casual-dining chain as its investments in affordability and Uber delivery paid off. 20, 2025 Facebook Twitter LinkedIn Consumers are finding value in casual-dining brands like Olive Garden. Same-store sales at the Italian casual-dining chain spiked 6.9% By Joe Guszkowski on Jun.
So much data is generated at every point within a restaurant, whether fast casual or fine dining. The question now becomes – how to make sense of that data and use it to elevate the dining experience. For the first part, click here and for the second part, click here. Data, Data, Data. As of 2024, over half of U.S.
Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2025. At the same time, it can result in consumers creating more waste if they order more than they can eat.
Heres how it works: Instead of pricing items individually, menus show a combined price that offers a slight discount compared to ordering each item separately. Prix Fixe Menu: A multi-course meal at a set price encourages guests to order more while offering an elevated dining experience. Why do bundles work?
Furthermore, AI can be an invaluable tool in helping restaurants inform pricing strategies and optimize revenue. By analyzing historical demand and sales data, AI can help identify pricing trends and opportunities for promotions or discounts. Restaurant owners agree, as nearly half of hospitality operators in the U.S.
Every cook, at least every serious cook, seems to want to work in one of those exceptional fine dining or cutting-edge experimental operations that are depicted in shows like Chefs Table or The Bear. If you are serious about a kitchen career and have the focus to map out the best path, then listen up.
" Among the key findings: Consumers crave interactive dining : 70 percent are interested in tasting events, 52 percent in private dinners with a chef, and 50 percent in cooking classes at restaurants. 90 percent of fine dining operators say in-person dining is key to their 2025 success.
Organize all your orders dine-in, online, and third-party and fulfill them in a flash, right from your POS. In September 2020, amid COVID-related dine-in restrictions, Huang started using its kitchen for a delivery-only pop-up, selling a cross between Nashville hot chicken and Sichuan fried chicken.
Are people dining out more or less? The findings tell a story of shifting behaviors, digital transformation, and a new definition of value in dining. The findings tell a story of shifting behaviors, digital transformation, and a new definition of value in dining. What’s driving their choices? The reason?
This shift is fueled by more adventurous young palates and a desire for children's dining experiences to reflect the culinary sophistication enjoyed by adults. MK : Value is a significant consideration — parents are looking for quality options that are appropriately priced for smaller portions.
This transformation is not just about automation; it's about creating smarter, more efficient, and more personalized dining experiences. The Future of DiningAs AI in restaurants continues to evolve, we can expect more sophisticated predictive analytics, AI-driven pricing strategies, and advanced robotics in food preparation.
The NCR Voyix 2024 Digital Commerce Index revealed nearly half (48 percent) of consumers dine out less than they used to because inflation is top of the menu. Loyalty Reigns Supreme Although consumers may be more selective on where and when they dine out, they still want to frequent their favorite restaurants and access any deals possible.
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. Its an incredibly difficult life, one that only a few have been able to master.
"Our survey shows that GLP-1 users are not pulling back from restaurant dining—in fact, they’re increasing their visits across all segments, particularly quick-service restaurants (QSRs)," Jana Zschieschang, Chief Brand Officer for Revene Management Solutions, told Modern Restaurant Management (MRM) magazine. "However,
"Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss," Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. "We
Value-driven dining and a growing interest in regional brands are two trends uncovered in Yelp's 2025 Fastest Growing Brand s report. The biggest surprise was how much value-driven dining is at the forefront of consumer behavior. Why is breakfast booming, and will you anticipate that being affected by egg prices?
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. The “ PLNT Impact Tracker ” on PLNT Burger’s website wants you to think about what you’re eating. without interruptions.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Key customer factors that influence dining preferences, from demographics to behavior. Every successful restaurant has one thing in common: they know exactly who they are serving.
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