Restaurants: One-Third of US Diners Switching Their Favorite Restaurants Up for Value and Quality
- InsightTrendsWorld
- 1 day ago
- 9 min read
Why Is This Topic Trending?
Changing Consumer Priorities: Diners are increasingly evaluating restaurants based on overall quality and value rather than just speed and discounts.
Economic Pressures: Rising prices are leading diners to reassess how often and where they spend their money.
Eroding Loyalty: With one-third of diners switching their favorite restaurants within 12 months, brands face constant pressure to prove value.
Digital & Phygital Innovation: The growing popularity of self-service kiosks and voice AI in drive-thrus highlights technological advancements that improve efficiency and personalization.
Competitive Landscape: The rise of convenience stores and grocery outlets as alternative dining options intensifies competition, forcing restaurants to innovate on multiple fronts.
OverviewRecent research from Tillster’s 2025 Phygital Index Report reveals a significant shift in diner behavior in the fast-food and fast-casual sectors. One-third of surveyed U.S. diners have switched their favorite restaurants, with “better food” (46%) and “better value” (40%) as key decision factors. The study underscores that loyalty now must be earned with a holistic value proposition that integrates quality cuisine, personalized touch points, and technological enhancements like kiosks and voice AI.
Detailed Findings
Favorite Restaurant Swaps: 33% of 1,500 diners reported changing their favorite restaurant in the past year; 46% cited quality improvements and 40% noted better value as core motivators.
Kiosk Adoption: 61% of diners desire more kiosks in restaurants—a significant increase from 57% in 2024 and 36% in 2023—reflecting a steady growth in digital ordering preferences.
Voice AI Acceptance: 60% of diners are comfortable with AI-driven ordering at drive-thrus, with Gen Z showing the highest comfort level at 67%.
Dining Frequency Variations: While 45% of consumers are dining out less due to rising costs, 21% have increased their dining budgets, illustrating a split between cost-cutters and those who view dining out as a key indulgence.
Competition from Alternate Outlets: 24% of diners are now frequenting convenience and grocery stores more often than a year ago, challenging traditional quick-service and fast-casual operators.
Key Takeaway Loyalty in the restaurant industry is now a moving target—diners demand comprehensive value that goes beyond discounts, combining high-quality food with digital convenience and personalized experiences.
Main Trend“ Value 2.0 Revolution”
Description of the Trend: “Value 2.0 Revolution” The “Value 2.0 Revolution” encapsulates the modern dining paradigm where value is defined by a combination of quality food, efficient digital interactions, and personalized customer experiences. Diners are no longer satisfied with traditional discounts and speed; instead, they demand a holistic value experience that integrates innovative technologies like self-service kiosks and voice AI with superior service and quality.
What Is Consumer Motivation?
Quality and Experience: Diners seek not only affordable meals but also engaging, high-quality culinary experiences.
Digital Convenience: The integration of technology that speeds up and personalizes the ordering process is highly appealing.
Tailored Value: Consumers want rewards and loyalty perks that reflect their unique dining preferences and spending habits.
Economic Caution: Many diners adjust their frequency of dining out based on rising prices, making overall value a critical determinant.
What Is Driving the Trend?
Economic Uncertainty: Inflation and cost pressures compel consumers to scrutinize every dollar spent.
Technological Advancements: Innovations in AI and self-service interfaces are reshaping expectations and enabling seamless, personalized service.
Consumer Empowerment: The modern diner values control, customization, and transparency in their dining experience.
Competitive Environment: With grocery stores and convenience outlets improving their offerings, traditional restaurants must up their game.
Motivation Beyond the Trend
Experience as Currency: Beyond monetary savings, diners are willing to pay for intangible benefits like convenience, reduced wait times, and an overall enjoyable digital and physical experience.
Building Trust: Consistency in quality and service strengthens diner loyalty and creates long-term relationships, even when budgets are under pressure.
Enhanced Engagement: When every touchpoint—from ordering to pickup—is smooth and personalized, diners feel valued and understood, encouraging repeat visits.
Description of Consumers
Age Range: Typically 18–50, with a strong representation of Gen Z, Millennials, and younger Gen X.
Gender: Equally distributed across genders, with nuanced preferences emerging in loyalty and digital engagement.
Income: Generally middle to upper-middle income—consumers who are budget-conscious yet willing to invest in quality dining experiences.
Lifestyle: Busy individuals seeking convenience, efficiency, and quality. They prioritize seamless digital experiences and are highly responsive to personalized, tech-driven interactions in the dining sector.
Conclusions Consumer loyalty in the dining industry has evolved, and restaurants must now offer a comprehensive value proposition. With diners frequently switching brands in search of better experiences, operators need to blend high-quality food with advanced digital solutions. This convergence of physical and digital elements is pivotal in securing long-term loyalty in an increasingly competitive and cost-sensitive market.
Implications for Brands
Innovate Loyalty Programs: Shift from basic discounts to personalized, dynamic loyalty rewards.
Embrace Phygital Solutions: Invest in technologies like kiosks, mobile apps, and voice AI to provide seamless, integrated experiences.
Consistently Deliver Quality: Ensure food and service quality remains high, reinforcing the overall value proposition beyond mere price considerations.
Transparent Communication: Build trust by clearly communicating pricing, menu consistency, and quality standards across all channels.
Implication for Society
Raising Service Standards: Consumers’ evolving expectations promote higher service quality across the foodservice industry.
Digital Inclusion: Increased reliance on technology in everyday transactions fosters greater digital literacy and convenience.
Enhanced Consumer Rights: With clear expectations for value, diners can advocate for better overall service and quality, raising industry standards.
Implications for Consumers
Increased Empowerment: Consumers benefit from more choice and control, from customizable orders to personalized deals.
Integrated Experience: A seamless phygital experience means reduced wait times, better service, and a more enjoyable dining journey.
Enhanced Satisfaction: When value encompasses quality, convenience, and personalization, diners experience higher satisfaction and loyalty.
Implication for Future As economic and competitive pressures persist, restaurants will continue to redefine value. Expect a persistent evolution in digital integration, with further advancements in AI, self-service tech, and personalized loyalty programs. The future of dining will hinge on delivering a unified and flexible consumer experience that meets both budget constraints and high-quality expectations.
Consumer Trend“ Phygital Value Seekers” Detailed Description: Modern diners are a hybrid of online and offline consumers who expect a seamless integration of digital convenience with high-quality physical service. They value innovations that allow them to quickly customize orders, engage with loyalty programs, and experience efficient, error-free service both in-store and via digital channels.
Consumer Sub Trend“ Personalized Loyalty Engagement” Detailed Description: This trend highlights diners’ desire for loyalty programs that provide tailored offers and rewards. Consumers no longer want generic discounts; they demand programs that understand their preferences, offer meaningful perks, and enhance their overall dining experience across all platforms.
Big Social Trend“ Experience as a Value Multiplier” Detailed Description: Society increasingly recognizes that true value comes not just from monetary savings but from the overall quality of the experience. Convenience, personalization, and digital integration all multiply the perceived value of a meal, driving loyalty far beyond simple price competition.
Worldwide Social Trend“ Convergence of Retail & Foodservice” Detailed Description: Globally, the lines between traditional dining outlets and retail food providers like convenience stores and grocery chains are blurring. These sectors are converging as each strives to deliver high-quality, affordable meals enhanced by digital innovations, forcing traditional restaurants to innovate continuously.
Social Drive “Holistic Cost-Benefit Mindset” Detailed Description: Consumers evaluate their dining experiences based on a comprehensive cost-benefit analysis that includes price, quality, speed, convenience, and personalization. Their loyalty is contingent on a brand’s ability to deliver a well-rounded value package that satisfies all these criteria.
Learnings for Brands to Use in 2025
Embrace Integrated Technology: Utilize kiosks, mobile apps, and voice AI to streamline ordering and enhance personalization.
Enhance Loyalty Programs: Offer tailored rewards, dynamic promotions, and seamless digital integration to reinforce value.
Prioritize Consistency: Maintain high standards for food quality, order accuracy, and customer service across all channels.
Leverage Data Analytics: Use customer insights to customize menus, suggest add-ons, and create individualized offers that resonate with diners.
Communicate Transparently: Build trust by clearly conveying pricing structures, menu consistency, and value propositions in all communications.
Strategy Recommendations for Brands to Follow in 2025
Adopt a Phygital-First Approach: Ensure that every customer interaction—whether digital or in-person—delivers a consistent, high-quality experience.
Focus on Hybrid Value Delivery: Combine affordability with quality and personalization by offering diverse loyalty incentives and limited-time promotions.
Segment and Personalize Communications: Utilize customer data to create targeted messaging that speaks directly to the varying needs of cost-conscious and experience-driven diners.
Invest in Advanced Training: Empower staff and technology support teams to resolve issues quickly and enhance the overall digital experience.
Foster Cross-Channel Consistency: Align all service channels—from kiosks to mobile apps—to ensure a unified brand experience that reinforces customer trust and loyalty.
Final Sentence (Key Concept)“In 2025, value transcends price—it is defined by the seamless fusion of quality, digital convenience, and personalized experiences that consistently earn diner loyalty.”
What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do ItBrands must adopt a comprehensive approach to value by:
Implementing integrated phygital solutions such as kiosks and voice AI to ensure fast, personalized ordering.
Enhancing loyalty programs to offer tailored rewards and dynamic, engaging promotions.
Maintaining unwavering quality in food and service to reinforce overall value.
Ensuring clear, transparent communication of pricing and promotions to build lasting trust with cost-conscious consumers.
Final Note
Core Trend
“Value 2.0 Revolution” Detailed Description: The dining landscape is shifting as consumers redefine value to encompass not only low prices but also high quality, digital convenience, and personalized experiences.
Core Strategy
“Phygital Integration for Comprehensive Value” Detailed Description: Unifying physical and digital dining interactions creates a robust value proposition that meets modern consumer expectations for speed, quality, and customization.
Core Industry Trend
“Hybrid Competition Across Foodservice & Retail” Detailed Description: As convenience stores and grocery chains intensify competition, traditional restaurants must innovate in pricing, experience, and digital integration to maintain their market share.
Core Consumer Motivation
“Cost-Conscious Yet Experience-Driven” Detailed Description: Consumers demand not only affordability but also an enriched, personalized dining experience that seamlessly blends quality with convenience.
Final Conclusion The evolving notion of value in 2025 is redefining diner loyalty. As consumers demand a holistic blend of quality, convenience, and personalization through phygital channels, restaurants must innovate continuously to remain competitive. Brands that effectively integrate advanced technology with superior service and tailored loyalty programs will succeed in capturing and retaining the modern, value-driven diner.
Core Trend Detailed: “Value 2.0 Revolution”
Description“Value 2.0 Revolution” encapsulates the new way diners assess their restaurant experiences. Today’s consumers no longer judge a dining brand merely on low prices; rather, they evaluate a holistic value proposition that includes high-quality food, seamless digital interactions, personalization through loyalty programs, and the overall convenience of their ordering experience. This trend is driving restaurants to fuse physical service excellence with cutting-edge digital technology—often termed “phygital” integration—to continually earn and maintain customer loyalty.
Key Characteristics of the Trend (Summary)
Holistic Value Perception: Consumers integrate price, food quality, order accuracy, and digital convenience into their definition of “value.”
Phygital Integration: Increased adoption of self-service kiosks, mobile apps, and voice AI creates a streamlined, personalized ordering process.
Eroding Brand Loyalty: With one-third of diners switching their favorite brand for better experiences, loyalty is now fluid and must be earned with consistent performance.
Customization & Personalization: The demand for tailored rewards and user-friendly digital experiences drives adoption of integrated loyalty programs.
Market and Cultural Signals Supporting the Trend (Summary)
Economic Pressures: Inflation and rising prices have led consumers to scrutinize every transaction, prompting a more deliberate dining-out decision process.
Tech Acceptance: Increased comfort with digital ordering tools—illustrated by rising kiosk usage (61% of consumers) and widespread voice AI adoption (60% overall, 67% among Gen Z).
Changing Consumer Behavior: Shifts in spending patterns show a divergence, with some diners cutting back on frequency while others maintain or even increase their dining budgets when they perceive strong value.
Competitive Alternatives: Growth in grocery and convenience store dining options highlights the need for traditional restaurants to elevate their entire experience.
How the Trend Is Changing Consumer Behavior (Summary)
Intentional Choice Making: Consumers are more selective, comparing brands based on a composite of quality, speed, convenience, and personalization.
Enhanced Digital Engagement: Diners increasingly favor restaurants that integrate digital touchpoints and offer frictionless, customized ordering experiences.
Flexibility in Loyalty: With loyalty no longer guaranteed, diners are willing to switch brands if they perceive another offers a superior overall package.
Experience-Driven Decisions: A restaurant’s environment, digital capabilities, and personalized service significantly influence repeat business.
Implications Across the Ecosystem (Summary)
For Brands and CPGs
Innovative Loyalty Programs: Brands must invest in loyalty initiatives that deliver personalized rewards and consistently communicate their value proposition across channels.
Holistic Marketing: Emphasizing not just discounts but the overall dining experience, including quality, convenience, and technology integration.
Data-Driven Offerings: Leveraging customer insights to fine-tune menus, promotions, and digital services that resonate with evolving consumer needs.
For Retailers
Omnichannel Synergy: Retail environments should merge physical and digital experiences to provide customers with uniform, high-quality service whether ordering through kiosks, mobile apps, or in-store interactions.
Operational Efficiency: Intelligent layouts that optimize kiosk placement and streamlined digital workflows reduce wait times and enhance overall customer satisfaction.
For Consumers
Empowered Decision-Making: An integrated digital experience offers diners the ability to customize orders, track loyalty rewards, and quickly access information—maximizing their overall satisfaction.
Enhanced Experience: Consumers benefit from reduced friction and personalized interactions that build trust and encourage repeat patronage.
Strategic Forecast
Deeper Technological Integration: Expect to see further refinement of self-order kiosks, voice-enabled drive-thrus, and mobile apps that offer hyper-personalization through AI-driven analytics.
Uninterrupted Omnichannel Experiences: Restaurants will continue to invest in platforms that create a seamless transition between digital and physical touchpoints, enhancing customer engagement at every stage of the dining experience.
Personalization at Scale: Data utilization will reach new heights as brands tailor promotions and product recommendations in real time, maximizing relevance to cost-conscious yet experience-driven consumers.
Competitive Convergence: With grocery outlets and convenience stores improving their food service offerings, traditional restaurants will need to maintain high standards to remain competitive on both price and overall experience.
Final Thought“ In 2025, value transcends a mere price tag—it becomes a multidimensional promise combining quality, digital convenience, and personalized service that continuously earns consumer loyalty in an increasingly competitive dining landscape.”
