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.
Domino’s and Pizza Hut have both unveiled brand refreshes designed to modernize their images while maintaining customer familiarity. Domino’s introduced its first major update in 13 years, featuring a brighter logo, redesigned uniforms, packaging, signage, and a new jingle performed by country artist Shaboozey. Pizza Hut refined its classic red roof logo with a streamlined, all-red look. While Domino’s update comes amid rising sales, Pizza Hut’s follows a period of decline. Together, their moves reflect how timely design updates can redefine consumer expectations and keep legacy brands feeling current in a competitive market.
Drone delivery is finally taking flight in the US, with major quick-service chains launching pilot programs to test airborne burrito and chicken deliveries. Uber Eats and Flytrex plan drone pilots by late 2025, while Dave’s Hot Chicken, Chipotle, and GoTo Foods are running tests across California and Texas with partners like Matternet, Zipline, and Wing. Looser regulations and better tech are driving momentum, though most efforts remain small-scale. Still, even if drone delivery doesn’t revolutionize logistics, the buzz positions these brands as forward-thinking innovators gaining valuable PR lift.
One out of every four new McDonald’s stores is located in Texas, per Bloomberg, as the fast-food chain aligns its footprint with US population trends and races toward its goal of 50,000 locations worldwide by 2027. Companies should be constantly reevaluating their store portfolios to ensure they align with demographic trends. Failing to respond to population shifts could cause brands to lose relevance, particularly in fiercely competitive sectors like fast food.
Jack in the Box introduced an in-app, AI-powered “choose your own adventure” game to deliver more deals to customers and increase engagement. More quick-service restaurants (QSRs) are turning to gamification to reverse slumping traffic, spotlight value offerings, and attract more diners to their apps. Offering gamified experiences is an effective way for QSRs—and even retailers—to get new customers into their orbits while encouraging existing ones to order more frequently.
Ralph Lauren is expanding its hospitality empire, with plans to open a new Polo Bar restaurant in London in 2028. That outpost will join others in New York, Milan, Chicago, Chengdu, and Paris. With luxury sales under pressure as aspirational customers pull back, hospitality concepts are an opportunity for brands to keep shoppers engaged and maintain heat. By deliberately courting social media attention, and using tactics like exclusive merchandise to build excitement, brands can create more opportunities for customers to spend time (and money) on their properties.
DoorDash unveiled a host of features designed to make its services stickier for both businesses and customers. DoorDash’s fulfillment updates position the platform as a stronger partner for the many retailers trying to keep pace with Amazon and Walmart on delivery speed. At the same time, the company’s latest features show the pressures of competing with Uber and Instacart, both of which are adding more retailers to their platforms while courting customers with broader perks.
McDonald’s is bringing back its Monopoly promotion after nearly a decade, with help from an unexpected retailer: Best Buy. The partnership between Best Buy and McDonald’s could be a harbinger of things to come, as companies across industries look for ways to broaden their appeal to value-seeking customers—and as retailers with media networks look to bring in more nonendemic advertising dollars.
Olive Garden is testing lower-priced entrées with smaller portion sizes, parent Darden said, to woo consumers who are price-conscious as well as those on weight-loss drugs like Ozempic. Darden’s investments in pricing are helping it win spending from value-conscious consumers, who are looking to get more bang for their buck—and a clear idea of what a night out will cost them. While keeping prices low may hurt short-term profits, the company is confident that its value focus will position it to boost sales and take share.
Value menus are the rare bright spot in an otherwise sluggish year for the restaurant industry. Traffic related to value menus rose 1% YoY in Q2, per Circana. Overall restaurant traffic fell by 1% YoY in the same period, indicating that meal deals are getting diners to open their wallets. But as restaurants have also discovered, meal deals alone aren’t enough to get customers through the door. Instead, operators need to excite would-be diners about what they’re offering—whether by emphasizing the scale of their discounts, product or service quality, or the temporary nature of offers.
Cracker Barrel and Jaguar faced fierce backlash over recent rebrands, including criticism from Donald Trump, but their responses diverged sharply. Cracker Barrel scrapped its new logo, ended DEI initiatives, and restored traditional elements after customers accused it of abandoning its heritage. Jaguar, however, doubled down, unveiling a bold redesign and luxury EV despite Trump’s attacks, signaling a pivot toward younger, wealthier buyers. The contrast underscores how brand reinventions can either alienate loyalists or attract new audiences, with success hinging on timing, cultural awareness, and a clear long-term strategy.
RaceTrac will acquire sandwich chain Potbelly in a $566 million cash deal expected to close in Q4, with both brands continuing to operate separately. The acquisition boosts RaceTrac’s foodservice offerings at a time when convenience-store meals are driving growth, accounting for nearly 28% of in-store sales in 2024. For Potbelly, going private could accelerate its ambitious plan to expand to 2,000 shops while avoiding public market pressures. The move is a strategic play in the convenience-store foodservice arms race, positioning RaceTrac against competitors like 7-Eleven and Wawa in the battle for meal-focused customers.
Value-focused grocers are aggressively expanding as cost-conscious consumers seek affordable options, with Aldi set to open 225 US stores in 2025, Trader Joe’s adding 41, and Lidl continuing steady growth in key metro areas. Inflation pressures and lingering COVID-era costs are fueling a surge in private-label demand, which grew 4.4% year over year compared with 1.1% for national brands. These chains’ differentiated private-label strategies are driving above-average foot traffic, underscoring their appeal. The takeaway for competitors is clear: prioritize value while building unique private-label lines that strengthen margins and deepen customer loyalty.