Chicago's Beverage Culture: Insights From Galit's Scott Stroemer

Reimagining Dining Out: Trends Reveal How Consumers Navigate Inflation

Update Dining Trends Shift: More Buyers, New Behaviors As Americans navigate the toll of inflation and economic uncertainty, their dining habits are evolving significantly. Despite the challenges faced by many — particularly younger and low-income diners — reports from leading sources like Toast, OpenTable, and Resy reveal a surprising appetite for dining out, albeit with caveats. Casual dining establishments like Chili's are capitalizing on this trend, indicating that consumers remain eager to enjoy meals outside their homes, even if their spending is more selective than in the past. Time to Dine: Early Reservations Rising One of the most notable shifts is the timing of dining experiences. According to Toast, there has been a marked increase in early reservations, with data indicating a 19% rise in bookings for breakfast at 9 a.m. alone. Even more interesting, 40% of Gen Z respondents have reported participating in 'two-dinner nights', suggesting a creative approach to exploring food offerings during different times of the day. This trend highlights the transition of dining from merely a daily occurrence to a cherished experience worth planning around. Creating Memorable Experiences: Dining as Special Treat Dining out is increasingly viewed as a special experience rather than a routine activity. OpenTable’s findings show that 61% of Americans believe that dining out in the upcoming year will feel more like a treat. This change in perception is pushing restaurants to focus on delivering unique dining experiences over merely food offerings. Examples include pop-up events, collaborations, or creative dining concepts that enhance consumer engagement and experience. Driving Value: The Demand for Affordable Indulgences With many consumers feeling the pinch of increasing prices, restaurants must find ways to make dining feel like a valuable treat. According to research, as inflation has raised the cost of meals by over 4%, the appetite for happy hour promotions is undeniable. More than half of diners expressed a desire for more such offerings, indicating that consumers seek value without sacrificing quality. Restaurants that adapt to this challenge by offering discounted menus or bundled deals may find themselves better positioned to attract budget-conscious diners. Competition with Grocery Stores: Eating Out vs. Cooking at Home Interestingly, the rise in meal preparation at home is reshaping how consumers approach dining out. Inflation has prompted many to seek better-quality grocery items rather than frequenting restaurants, as illustrated in recent reports from World Economic Magazine. Although grocery prices have risen, they remain more appealing compared to restaurant prices, which have escalated dramatically. This trend presents both a challenge and an opportunity for restaurant owners. They must compete not only with other eateries but also with consumers' growing preference for premium home-cooked meals. The Future of Dining: Adapting to Changing Consumer Preferences Looking ahead, the future of dining requires adaptability from restaurants. As reported by both Toast and Marketplace, the shift towards morning meals and unique experiences represents a fundamental transformation in consumer preferences post-pandemic. Establishments that recognize and embrace these trends — from increased emphasis on early dining to offering curated experiences — will likely thrive in the evolving marketplace. The demand for convenience alongside quality, especially in an inflationary environment, can guide restaurants in crafting appealing menus and strategic marketing. In conclusion, restaurant owners must remain vigilant and responsive to the ongoing changes in consumer behavior influenced by economic conditions. By prioritizing value-driven offerings and memorable experiences, restaurants can maintain consumer interest in a time of restrained spending. As we move into 2026, the challenge will be to bridge the gap between customer expectations and operational feasibility while catering to an audience eager for both value and engagement.