Key Trends Every Operator Should Know
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Why are traditional restaurant chains seeing a dip in sales, while unexpected players are thriving? Dive into the latest trends the Curion restaurant experts uncovered. Learn how the restaurant industry is reshaping the dining landscape and discover what it means for your next big launch.
Whether you’re a product developer, marketer, or decision-maker in the CPG industry or quick-service restaurants (QSRs), understanding the latest restaurant trends can provide a competitive edge.
Overall dining engagement remains healthy with 80% of consumers reporting dining out at least a few times a month. But the restaurant industry is shifting in unexpected ways. Monthly spending has increased by 16% year-over-year, yet only 38% of consumers report spending less than the previous year.
Understanding trends and shifting consumer values is vital for restaurant industry experts and decision-makers to build a better brand experience. By leveraging insights from food and beverage testing, market research, and restaurant operations, you can keep your finger on the pulse of emerging consumer preferences, validate innovative concepts, and optimize your product offerings to meet the evolving demands of the market.
Curion’s team of restaurant subject matter experts put their heads together to identify the top 10 hot topic trends and inquiries that our clients are seeking guidance on. These key areas of focus highlight some of the critical challenges and opportunities that industry leaders are battling with their competitors. The trends in this article highlight the importance of adaptability and forward-thinking in today’s constantly changing restaurant environment.
Meal Deals and Value Wars
One thing is certain: Value is on many minds of restaurant patrons. With meal deals overwhelming the industry, the choices are flooding the minds of consumers. It’s one of the biggest current trends in the restaurant industry, which makes it no surprise we’re giving it its own section before our top 10.
From family diners to QSRs, most restaurants have a value menu with new offerings or updated menus and deals coming out almost every week. There’s even a name for it: the Value Wars. Originally intended as a month-long summer promotion highlighting McDonald’s value deals menu, the “value wars” have evolved to include casual dining and full-service restaurant chains like Jimmy John’s, Hardee’s, and Taco John’s.
“90% of restaurant operators say their customers are more value-conscious than they used to be.” (NRA’s State of the Restaurant Industry 2024).
The Value Wars, also dubbed as “street-fighting mentality,” has been inspired by many factors. About three quarters of American consumers are now viewing fast-food dining as a “luxury.” According to The Food Institute, search interest this year for “budgeting” is at a 15-year high. Even search interest for “most affordable states to live in” are up +2,150%. Food prices are experiencing inflations. The cost of dining out also jumped higher at about 4%. McDonalds and Burger King now have a $5 meal deal. Wendy’s announced a $3 breakfast meal deal. Starbucks has a $5 pairing deal. Taco Bell has a $7 “Luxe” Cravings Box. Sonic features a $1.99 value menu. And let’s not forget Chili’s popular “3 For Me” deal. The list goes on!
Some restaurants are taking alternate routes to showcase value. First Watch isn’t discounting their deals. Cheesecake Factory is aiming for value through execution and customer feedback rather than price value. Chili’s and Applebees are going after fast-food patrons, crossing into the QSR divide to expand their reach and highlight their value as fast-food chains are rising prices.
Loyalty programs for restaurants are also on fire, especially with the spending power of Gen Z. In fact, many brands are pinpointing the older consumers in this generation as parents of the emerging Gen Alpha. The key to success is encouraging consumers to sign up. 58% of Gen Z adults are less likely to try new restaurants, preferring to visit diners where they hold loyalty memberships. This loyalty-driven behavior is crucial to pay attention to, with 87% of Gen Z expressing interest and willing to participate in loyalty programs if it’s offered.
As the value wars heat up, restaurants are also adapting to shifting consumer expectations and looking for ways to remain competitive. With that in mind, let’s explore our top 10 list of trends that are influencing the strategic decisions of restaurant industry leaders.
Top Ten Trends in the Restaurant Industry
Curion’s restaurant experts pinpointed the trends that are really making waves with their clients. Here’s a breakdown of the key topics our clients are discussing across our network, and how Curion’s Product Insights and Market Insights teams can provide valuable data-driven results to aid in their success. These reflect what’s important in the restaurant industry right now – do these align with your experiences and needs, too?
TREND #1 – Nostalgia Meets Modernity: Revitalizing Classic Brands. Established brands are reexamining their identities to find a balance between nostalgia and modern relevance in today’s dining landscape. Cracker Barrel, for example, is experimenting with new menu offerings like Green Chile Cornbread and Hashbrown Casserole Shepherd’s Pie. Perkins Restaurant & Bakery is changing their name to Perkins American Food Co., along with a new menu refresh.
Product insights can help determine which nostalgic menu items resonate most with current customers.
Market insights can guide rebranding efforts to attract new demographics without alienating loyal patrons.
TREND #2 – The Great Chicken Showdown: Chicken Wars 2.0. The competition for chicken dominance is heating up. Fast-casual nuggets and boneless wings offerings are expanding more into QSR chains. Applebee’s ran a nationwide double-blind taste test and came out on top against two other competitors. The result: they can now claim to have America’s favorite boneless wings.
Bold new flavors and sauces are also being featured across the chicken wars. KFC and Wendy’s kicked off their saucy showdown on the same day in June, both launching their own sauce-covered chicken nuggets options. While KFC first introduced Saucy Nuggets back in March, they’re now expanding their line to compete with Wendy’s seven-sauce selection featuring Honey BBQ, Garlic Parm, and Spicy Ghost Pepper.
Product insights can refine new chicken recipes to ensure they meet customer expectations.
Market insights can identify the best flavor profiles and dipping sauces to offer.
TREND #3 – Bring The Flavor Home: Restaurant Sauces Hit Grocery Shelves. Major restaurant brands are capitalizing on the trend of selling their signature sauces in grocery stores, allowing customers to recreate their favorite restaurant flavors at home.
Recently, Subway has partnered with T. Marzetti Company to launch four of its popular sauces—Sweet Onion Teriyaki, Roasted Garlic Aioli, Baja Chipotle, and Creamy Italian MVP—at major grocery stores across the U.S., including Walmart, Kroger, and Albertson’s. Zaxby’s has also partnered with Litehouse to develop their sauce portfolio which will be available in major stores including Walmart, Kroger, Winn Dixie, and online via Amazon.
Product insights can ensure the at-home versions of sauces maintain the same quality and taste as in-restaurant offerings.
Market insights can identify which sauces have the highest potential for retail success.
TREND #4 – Efficiency + Quality: Mastering Productivity in the Kitchen. As inflation impacts food costs, restaurants are focusing on productivity testing to identify ways to take down costs. This includes approving alternative suppliers, finding new recipes/ingredients, and optimizing their products or services to maintain quality while keeping prices competitive.
Product insights can help find ingredient substitutions that reduce costs without compromising quality.
Market insights can identify consumer price sensitivity and willingness to pay for certain menu items.
TREND #5 – Behind The Scenes: Optimizing Back of House Operations. Restaurants are exploring which ingredients need to be freshly prepared on-site versus those that can be prepped with a vendor off-site to enhance efficiency and consistency in food preparation.
Product insights can determine which ingredients can be pre-prepped without losing quality.
Market insight can assess messaging and customer perceptions of freshness and quality to ensure brand standards are maintained.
TREND #6 – Standing Out With Brand Identity: Crafting Signature Menu Experiences. In a saturated market, restaurants are looking to establish unique identities through signature menu items, such as specialty sandwiches and drinks, to stand out from the competition.
Burger King, for example, is heating things up with its new LTO Fiery Menu, which includes Fiery Strawberry & Sprite, Fiery Mozzarella Fries, Fiery Bacon Whopper, Fiery Chicken Fries, and a Fiery Bacon Royal Crispy Chicken Sandwich. While owning “heat” as part of a brand identity can be challenging with its widespread appeal and strong consumer interest in bold flavors, Burger King sets itself apart by consistently innovating with bold flavors and allowing guests to customize their spice experience.
Product insights can help develop unique menu items that reinforce brand identity.
Market insights can identify gaps in the market and opportunities for differentiation. Concept screening and competitive assessments with national consumers can be conducted to identify trends in local and regional markets.
TREND #7 – Unlocking Customer Insights: Catering to Occasions. Restaurants are analyzing customer behavior to identify opportunities to cater to unique visits and different consumption occasions at different dining times. Afternoon snackers might be on the prowl for a savory snack beyond their meals. Also, patrons are seeking an afternoon “pick-me-up” and seeking out a new local beverage joint for a coffee.
Product insights can help develop new menu items tailored to different day parts.
Market insights can identify customer needs and preferences for different dining occasions.
TREND #8 – Mastering The Menu: The Art of Menu Optimization. Restaurants are revisiting their menus to decide on the right mix of items and pricing strategies that appeal to customers while maximizing profitability.
Outback Steakhouse is just one example of restaurants looking to optimize their menu. This popular restaurant chain is reducing the number of items and introducing higher-value and exclusive options to better resonate with their customers. This will result in increased satisfaction without engaging in deep discounting.
Product insights can determine which menu items are most popular, and why.
Market insights can guide pricing strategies and menu layout to enhance customer experience.
TREND #9 – Trendspotting: Aligning with the Pulse of the Industry. As trends rapidly change, restaurants are tasked with identifying which current trends align with their brand values and customer expectations. From sustainability and plant-based offerings to pop-up locations and dining in the dark, the options are endless as trends keep evolving.
Culinary Dropout has embraced the trend of afternoon snacking by launching a new menu focused on shareable bites and small plates available during non-traditional dining hours. This strategy targets younger, on-the-go consumers looking for casual dining options outside of standard meal times.
Product insights can validate new trend-based menu items before a full launch.
Market insights can ensure these trends align with brand values and customer expectations.
TREND #10 – Live And Die By Social Media: Riding the Viral Wave. The influence of social media on dining choices is quickly becoming the way of life. Restaurants are creating better brand experiences for their diners. “Hacks” are becoming influential and making their way from TikTok to Chipotle, holding restaurants accountable and refocusing the meaning of “the customer is always right.”
Food influencers are also shaping public perception and driving interest in new menu items and promotions. McDonald’s aimed for viral success with its LTO Grimace shake, featuring a vibrant purple color and limited availability. The popularity and demand of the shake went viral on TikTok as users began pretending to die after drinking it, often dramatically pouring the shake over themselves in videos.
Product insights can ensure new items are social media-ready in terms of appearance and taste.
Market insights can identify the impact of key influencers and platforms to maximize social media impact.
Curion offers valuable support for restaurants looking to navigate current industry trends through our expertise in product and market insights. Our team understands the complexities of the restaurant landscape, from revitalizing classic brands to optimizing menus and enhancing the overall dining experience. By utilizing our consumer collaboration spaces and testing kitchens, we provide insights that help restaurants make informed decisions. Whether you’re focused on improving guest experiences, streamlining operations, or exploring new market opportunities, we’re here to help you understand what your customers want and how to meet those needs effectively. With Curion, you can rely on a knowledgeable partner to guide you in making meaningful changes that resonate with your audience.
Curion specializes in delivering impactful insights to the world’s top CPG companies, helping them develop winning, repeatedly purchased products. Curion’s deep data-driven product insights, sensory expertise, and state-of-the-art consumer centers enable them to uncover responses to critical client objectives. With over five decades of experience in the product testing industry, Curion is dedicated to guiding clients with their proprietary XP Xperience Performance platform, connecting brands to consumers at every step.
An innovator in the industry, Curion recently developed a groundbreaking benchmarking product testing method, the Curion Score™, which has become a trusted and sought after tool within the industry. As one of the largest product and consumer insights companies in the U.S., Curion has built a reputation for excellence and trust among the world’s leading consumer brands. Curion’s commitment to innovation and expertise, coupled with a passion for delivering actionable insights, makes Curion a valuable partner for companies looking to develop and launch successful products.