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.
Gen Z’s financial strain is deepening as unemployment rises and wage growth slows, leaving many unable to cover basic needs. With joblessness among 20- to 24-year-olds hitting 9.2% and student loan relief tightening, younger consumers are cutting back—especially on dining out. Chipotle and Shake Shack both report declining sales from this demographic, though each is fighting back with loyalty perks and in-app promotions. Retailers like Urban Outfitters are also adapting through lower-cost private labels and localized assortments. Overall, younger shoppers’ pullback may pressure retail and restaurant sales through the holiday season.
Quick-service chains are experimenting with beverage-focused spinoffs to tap into evolving consumer tastes and strengthen sales. Chick-fil-A has launched Daybright Coffee, while Taco Bell is expanding its Live Más Café concept to 30 locations by year’s end. With the US nonalcoholic beverage market projected to hit $178.1 billion, the category’s appeal is clear—but success for large brands remains uncertain. McDonald’s ended its CosMc’s test after gleaning key menu insights, choosing to integrate the best-performing items into existing stores, a move that signals a more sustainable approach to beverage innovation.
Major casual dining chains are bracing for weaker Q4 sales as the government shutdown and broader economic headwinds weigh on consumer spending. Brinker International maintained its outlook despite Chili’s gains, while Cheesecake Factory reported slowing momentum and Chipotle cut its sales forecast for the third straight quarter. With real income growth stagnating and menu prices continuing to rise, many consumers are cutting back on dining out. To stay competitive, restaurants need to focus on value-driven promotions and loyalty programs designed to attract price-sensitive diners and encourage repeat visits.
Grubhub is partnering with Instacart to power its grocery ordering as the Wonder Group-owned platform works to better compete with DoorDash and Uber. Instacart will manage fulfillment and delivery through its 1,000-plus retail network, marking the first time its grocery experience is embedded in another app. The deal expands Instacart’s reach to Grubhub’s urban, suburban, and college users while helping Grubhub diversify into grocery and pharmacy delivery. As rivals deepen partnerships and retail media strategies, both companies aim to boost order volume and ad revenues, leveraging collaboration to counter intensifying competition in the delivery market.
Prescription pharmaceuticals accounted for 13.1% of total estimated US linear TV ad spend in Q3 2025, the highest among the top five industries, according to an October report from iSpot.tv.
Rising restaurant prices are reshaping how Americans dine out. As 82% of consumers notice higher prices, many are cutting back, especially lower-income households. This shift has boosted value-focused chains like Chili’s and Texas Roadhouse, which have gained market share through affordable bundles and barbell pricing strategies that balance cost-conscious and premium offerings. In contrast, chains that serve less affluent consumers, such as McDonald’s, have seen visits fall despite renewed value promotions. With profitability concerns mounting, operators face pressure to raise prices carefully while using targeted deals and loyalty programs to sustain demand and protect margins.
Starbucks is piloting a new rewards initiative called Coffee Loop, which offers customers a free drink after every nine purchases, according to Modern Retail. The invite-only test, hosted on a separate website, aims to reengage customers amid six consecutive quarters of declining US sales. CEO Brian Niccol has criticized the current rewards model as too generic, signaling a push toward simpler, more targeted incentives. While Coffee Loop mirrors the punch-card approach used by smaller cafés, it’s just one part of Starbucks’ broader effort to reignite growth through faster service, refreshed menus, and stronger store experiences.
Domino’s delivered its strongest US same-store sales growth since early 2024, with Q3 sales up 5.2% YoY, driven by its $9.99 “Best Deal Ever” promotion, new menu items, and expanded reach through aggregator platforms like DoorDash. Revenues climbed 6.2% to $1.15 billion, beating expectations, while EPS dipped 2.6% to $4.08. Despite reaffirming its outlook, Domino’s cautioned that macroeconomic headwinds are intensifying. The brand’s fresh marketing push and aggregator expansion signal long-term growth potential, though sustained success hinges on converting new digital customers into loyal repeat buyers.