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Restaurants & Dining

While Chipotle struggles to get customers through the door, Taco Bell is gaining share.

Quick-service and casual dining chains are kicking off the year by leaning hard into affordability, rolling out value menus and tiered meal deals to win back price-sensitive customers. Brands like Taco Bell, Wendy's, and Red Robin are spotlighting lower-cost options and limited-time offers as sticker shock reshapes dining habits. The shift comes as consumers pull back: 44% of lower-income consumers are dining out less. Chains that can balance sharp pricing with traffic-driving offers may keep consumers coming, while those that can't risk losing relevance.

Brands try to bolster value and innovate to win cost-conscious customers.

Starbucks is sponsoring the second season of Amazon Prime’s reality competition “Beast Games: Strong vs. Smart” to try to reignite brand buzz.

Chick-fil-A launches biggest-ever campaign amid QSR headwinds: The chicken chain is celebrating its 80th birthday with LTOs, merch, and a healthy dose of nostalgia.

Consumers traded down or tapped out throughout 2025, making value deals essential for restaurant survival.

As rising food-away-from-home costs push diners to prioritize value, Darden Restaurants is gaining ground with compelling offers like Olive Garden’s $13.99 Never Ending Pasta Bowl and LongHorn’s budget-friendly lunch plates, which helped drive strong Q2 sales and foot traffic gains. Net sales rose to $3.10 billion and same-restaurant sales exceeded expectations, though higher beef costs pressured margins. With both Olive Garden and LongHorn outperforming and fine dining posting modest growth, Darden has raised its full-year sales outlook, reflecting confidence that its value-forward approach will keep resonating with cost-conscious consumers.

Solo dining is contributing more to restaurant spending as consumers carve out room for experiences despite rising financial stress. Solo diners now account for nearly half (47%) of quick-service restaurant (QSR) orders, up from 31% in 2021, according to Yum Brands, while a Toast report found a 22% spike in single diner reservations in Q3. The uptick in solo dining is a rare bright spot for the restaurant industry, which is otherwise struggling to find ways to engage consumers.

Fast-food restaurants are leaning into nostalgia to get customers through the door. McDonald’s The Grinch Meal holiday special is so far outperforming the chain’s Minecraft Meal and the revived Snack Wrap. Burger King’s SpongeBob menu “is swimming off trays,” with some restaurants running low on items less than a week after launch, the company told Nation’s Restaurant News. McDonald’s and Burger King’s use of nostalgia—and popular IP—is enabling them to build emotional connections with consumers and create additional reasons to visit their restaurants.

Yelp’s newest Most Loved Brands list identifies which national chains consumers returned to most in a year defined by cautious, value-sensitive spending. Unlike perception-based rankings, Yelp’s loyalty score draws from behavioral signals—repeat visits to brand pages, review volume, sentiment, and photo activity—revealing what people actually do, not just what they say. Dave’s Hot Chicken leads the list on the strength of customizable experiences and overwhelmingly positive ratings, while legacy chains, nostalgia-driven brands, and Zillennial favorites succeed for distinct reasons. For marketers, the findings echo broader path-to-purchase trends: consumers increasingly depend on reviews, consistency, and social proof to validate where they spend.

A growing number of high-end and mass-market brands are thriving even as they reduce promotions to protect margins and strengthen brand equity. Victoria’s Secret delivered its strongest sales growth in four years through more targeted discounting, while On Holding and Ralph Lauren posted standout revenue and EPS gains by preserving premium pricing and elevating brand perception. The trend extends beyond retail: although Cava recently cut its sales outlook, it is still avoiding discounts to protect a value proposition rooted in quality and experience. Together, these strategies reflect a shift away from competing primarily on price.

33% of US restaurant diners discover promotions via email/newsletters and 32% via social media, according to a September 2025 survey from YouGov.

Starbucks unveiled a new holiday drink available exclusively at Target stores. The release of the limited-edition Frozen Peppermint Hot Chocolate marks the first time the two companies have collaborated on a holiday drink. While the holiday exclusive won’t address their deeper challenges, it’s the right note to hit at a time when shoppers need extra motivation to visit a Starbucks or Target store.

JD.com beat analyst expectations in Q3 as subsidies, lower prices, and a more diversified revenue base encouraged spending despite China’s soft consumer climate. Growth in users and shopping frequency supported double-digit retail gains, while the company’s push into food delivery lifted sales but squeezed margins. JD is also testing its Joybuy platform in Europe and investing in Ceconomy AG to expand its footprint. While these moves help the company outpace a slowing market, the momentum relies heavily on subsidized growth, raising doubts about how sustainable the gains will be once incentives scale back.

More QSRs are relying on outside expertise to stay relevant in China. Restaurant Brands International struck a joint-venture deal with CPE as it looks to more than triple Burger King’s China store footprint by 2035, following a similar move by Starbucks. Seeking local partners is a sound strategy for QSRs, given significant differences in culture and consumer preferences. While US consumers are moved by nostalgia, Chinese customers demand newness at a pace that American companies aren't accustomed to—making partnerships a necessity for brands looking to stay current.

Starbucks Workers United is planning an open-ended strike in more than 25 cities on November 13, aligning with Red Cup Day, one of the company’s busiest annual events. The move comes after months of stalled contract talks and the union’s rejection of Starbucks’ economic proposal earlier this year. With key issues like pay, hours, and staffing unresolved, the strike threatens to disrupt Starbucks’ lucrative holiday season, potentially affecting sales of gift cards, merchandise, and seasonal drinks amid ongoing pressure on consumer spending.

McDonald’s CEO Chris Kempczinski expects pressures on US consumers to remain “well into 2026,” he said on the company’s Q3 earnings call. The deepening cost of living crisis is especially painful for lower-income households, who are struggling to manage higher rents and childcare costs alongside a renewed spike in food prices. McDonald’s playbook for navigating those pressures is relevant to both fellow QSRs and the retail industry. By successfully combining value initiatives with marketing and product innovation, the company is gaining share with higher-income consumers and staying relevant with less affluent households.