It’s a good time to be a restaurant consumer

2025 is a little more than halfway done, and already we are seeing the best year in restaurant sales in the last five. Sales this year are above where they were at the same time in 2024.

How does a better year for the hospitality industry positively affect the consumer?

The main thing is that food prices have stabilized for the most part, which means menu prices will not be going up much more this year. This will make it easier for the consumer since the bill is not constantly increasing. But there are other positive signs as well.

Restaurants are creating programs just for you

Loyalty programs have been helpful in bringing back guests. Restaurants will continue building in-restaurant loyalty, including more programs with bonus points. There will also be a renewed focus on using the loyalty program for takeout, since takeout has been such a large reason for increased sales this year. Certain loyalty programs will double your points if you come in on a Monday or Tuesday, typically slow days. And those points may get you free beverages, appetizers or desserts.

Customers are more value-oriented, which means that you will see more value options. Inexpensive meals for two are popping up, as well as two- to three-course meals that are budget-oriented. Some restaurants are offering a meal for two that includes soup or salad, entree and dessert for $25. You should also be looking for more discounts, as well as more innovative happy hours.

Your priorities are becoming theirs

What is more important to you: the price of dining out or the experience of going out with friends and family?

Interestingly, the National Restaurant Association reports in its State of the Industry 2025: “In fact, for most restaurant customers, the experience is more important than the price of the meal. And this doesn’t have to mean 5-star service. Consumers prioritize cleanliness and a kind and welcoming staff — two goals that are achievable for operators across the restaurant spectrum.”

This is great news for consumers because restaurants will really have to up their game in cleanliness and service to keep you coming back.

Creating new dining experiences

Even though competition is fierce, 29% of restaurants are investing in the expansion of their buildings or services this year. This is a great sign of better dining experiences and options to come.

What is surprising to me is that 22% of current restaurants are looking to add locations. This tells us that, while money is tight, profits are about where they were in 2024, and restaurants see their opportunity in growth rather than cost-cutting.

Consumers are changing the industry

The difference between how we dine now compared to the pre-COVID era is stark. Before COVID, dining in was the major part of the business, and takeout and delivery much less.

What surprised me most in this year’s restaurant report is that, when if comes to dining out at sit-down restaurants, millennials (ages 29-44) top the list with 89%. I was surprised to find that baby boomers (61-79) actually dine in restaurants the least, at 68%. Millennials also are the biggest users of delivery services, exceeding Gen Z (18-28), GenX (45-60) and the boomers. This tells us that restaurants are changing their menus and concepts to target their biggest customers.

How you spend your dollars at restaurants means everything to today’s operators. Ninety percent of fine dining operators and 87% of casual dining operators say dine-in customers are by far the most important source of revenue.

Restaurants certainly still have many challenges, but they are now able to focus on increasing sales and strategizing how to keep you coming into their restaurant rather than the competition by offering more specials, creative happy hours, better perceived value, more loyalty points and loyalty rewards. Be on the lookout for great deals coming to a restaurant near you.

• Izzy Kharasch is the founder of Hospitality Works, a consulting firm that has worked with 700+ restaurants and small businesses nationwide. He is offering Daily Herald restaurant owners a free consultation by contacting him at Izzy@HospitalityWorks.com.