Restaurants Fight to Keep Customers Happy in 2025

Dining Out Decline

People are eating out less often and spending less money when they do. Higher costs like rent and child care, along with economic uncertainty, are driving this trend. Restaurants are feeling the impact and are now focused on offering more value to win back customers.

Fast-Food Chains Lead the Way

Fast-food chains like McDonald's, Taco Bell, and Burger King are at the forefront of this shift, introducing combo meals and value menus.

• McDonald's has launched a $5 value meal and a buy one, get one for $1 deal, helping them regain customers and attract new ones.

Casual-Dining Chains Focus on Value

Casual-dining chains like Chili's are also prioritizing value.

• Chili's has reported double-digit same-store sales and traffic growth every quarter.
• Their success is partly due to the $10.99 Big Smasher meal and the virality of its Triple Dipper promotion.

Fast-Casual Chains Struggle

Fast-casual chains, however, have largely avoided the value wars, leading to underwhelming results for chains like Cava, Sweetgreen, and Chipotle. These chains face increasing pricing competition from both fast-food and casual-dining chains.

Rising Costs and Future Challenges

Restaurants are also dealing with rising costs, particularly for beef. They must choose between preserving profit margins by raising menu prices or holding onto customers.

The value wars are expected to intensify, especially in January, when diners are sticking to New Year's resolutions, adhering to stricter budgets, or staying warm during winter storms.