Consumers are cash-strapped. They’re getting squeezed by high prices. They’re looking for value. They’re looking for ways to stretch their dollars and get the most out of their spending. They want smaller dishes, snackable share plates, and appetizers instead of entrees. They want bundles, discounts, and limited-time offers (LTO).
But…
Consumers are also willing to splurge. They know dining out costs more and they still want to do it. And they’re willing to pay a little more for certain indulgences, upgrades, and specialty items.
If you’re wondering where restaurant owners are in all of this, you can find them wedged directly between a rock and a hard place. How exactly do you build a menu, a marketing approach, and a restaurant pricing strategy for a customer base that is actively seeking discounts but is also willing to spend?
“It may feel like a paradox,” says Back of House operations expert Dan Durkin. “But it’s really just about understanding what your customers actually want. Which items on your menu can be bundled or discounted for better value? Which items give you a little more flexibility to raise prices?”
Obviously, finding that balance is the real trick. Fortunately, as we’ll discuss, the answers are already contained in your data if you know how to access and use it.
But first, let’s take a look at some of the numbers behind this seemingly contradictory restaurant consumer behavior.
Before we dive into strategies for adjusting your menu, marketing, and pricing, let’s take a look at some of the interesting figures coming out of the restaurant business these days. First, we need to acknowledge that it costs more to dine out than to eat at home.
A McKinsey report says that the cost of dining out rose twice as fast as in-home dining between January 2024 and September 2025, with restaurant prices jumping 6% compared to a 3% rise in grocery prices.
So how have consumers responded?
According to a National Restaurant Association’s 2026 State of the Industry report:
But…
According to the same NRA report:
Also notable is that 36% of adults say they had gone out to eat less in the preceding three months than they had during the three-month period before that.
All in all, says another NRA study, consumer confidence has ticked steadily downward over the last year. The NRA says that consumer assessment of the economy reached a five-year low in February of 2026.
What do these figures tell us about restaurant consumer behavior at a time of rising food costs, spiking gas prices, and stubborn inflation?
“Customers are feeling the pressure from those rising prices but they still value the experience of dining out,” says Dan. “It’s kind of a cloudy outlook for restaurants, who have to thread the needle between what customers can afford and what they’re willing to spend.”
So let’s talk about how to thread that needle.
“It’s tempting to dangle a ton of discounts and limited time offers in front of your customers, and that can help draw traffic,” says Dan. “But of course, you’ll also take a hit on your margins. The real key is in your data. This is where you’ll find insight into what customers want and how you can deliver it.”
Here are a few ways you can leverage data to deliver on these expectations:
“Menu engineering is a fancy way of saying it’s time to update your menu with the help of your data,” Dan says. “Your POS [point of sale] system already contains a lot of the data you’ll need including your sales mix, product mix, and how much you're spending on food and liquor.”
These data points can offer insight into what’s selling, what isn’t, and where your best profit margins are coming from. These insights can guide restaurant menu optimization by telling you:
You can also figure out what to promote, or even add to your menu. For instance, looking at hourly breakdowns of both specific items and menu categories like appetizers, cocktails, mocktails, or desserts can give you a clear picture of what people are ordering, at what time.
“Maybe you’re selling a lot of drinks, but not many main courses, between 4 and 6pm,” Dan says. “Would people eat if there were compelling choices to nibble on while they're sipping away? People love small plates that are attractively priced. They give you an opportunity to showcase some of your menu items,and they can often be done at low cost with few staff. These offerings can really improve the average check during these shoulder periods.”
“You may not love the idea of following consumer trends. After all, you always want to stay true to the things that make your restaurant and your menu unique,” says Dan. “But you do need to pay attention to the way consumers are spending their money these days. A lot of these trends are backed by meaningful and potentially lasting changes in restaurant consumer behavior.”
For instance, the dramatic rise in the use of GLP-1 weight loss medications is changing the way consumers order in restaurants. People taking these medications often have smaller appetites. For many, order preferences are shifting toward smaller portions, healthier choices, and dishes that are rich in fiber and protein.
There is some real opportunity in this shift for restaurants. And that’s because consumers aren’t just citing a preference for certain options. They’re also demonstrating a willingness to pay more for these options.
In a recent survey from Nation's Restaurant News (NRN), 38% of respondents say they'd be willing to pay a premium for protein-rich dishes. This is something you’ll want to keep in mind when reconfiguring your own menu.
“Not only are you looking to identify menu items that your customers are willing to pay a premium for, but you also want to understand who those customers are,” says Dan.
An article in Modern Restaurant Management offers a glance at US Quick-Service Restaurant (QSR) trends in the first quarter of 2026. It points out that consumers are also showing a willingness to pay a premium for specialty drinks like “prebiotic sodas” and beverages with protein add-ons. Nearly half of respondents in a consumer survey said they would be willing to pay a premium for these specialty drinks.
But the study breaks the numbers down a bit further and finds that younger consumers are doing most of that splurging. The survey shows that Millennial and Gen Z consumers were most likely to pay the premium both for protein-rich drinks and specialty beverages.
Of course, this is just one demographic-related consumer trend, but it underscores the importance of drilling down on customer profiles, creating targeted promotions around these premium selections, and engaging in direct outreach. This is where a really good loyalty program can do a lot of the heavy lifting.
Providing value through discounts and special offers is one thing. But when it comes to creating the perception of value for your customers, it’s not the only thing. As an article from Deloitte points out, customers say pricing is only 67% of the equation when it comes to perceived value. So what else are customers looking at when they see value in a restaurant experience?
According to Deloitte, the rest of that perceived value is rooted in factors like:
“This is where restaurants have the biggest opportunity to capture more consumer dollars,” Dan notes. “Even if your customers are feeling the pressure from a challenging economy, they still see the value in going to a restaurant that does everything right.”
If you take one thing away from this discussion, it’s the importance of leveraging your data. But to do that, you need the right tools. It’s possible you just need to make the most of the data already contained in your POS system. Or you may benefit from adding on specialized tools for inventory management, restaurant menu optimization, or customer loyalty. Every operation is a little different. But we’re happy to walk you through all of your options.
Reach out for your free personalized consultation with Dan or any of our other in-house restaurant tech experts and we’ll work together to figure out exactly what you need.