Value and Vibes Top Guest Demands

Restaurant diners have become more selective, making deliberate choices and increasingly seeking both value and innovation, according to Bank of America’s latest Institute, Taste test: Where consumers are dining out.

The consumer decision filter right now is ‘give me value or give me vibes,’ but the strongest operators are finding ways to deliver both.

“The consumer decision filter right now is ‘give me value or give me vibes,’ but the strongest operators are finding ways to deliver both,” said Cristin O’Hara, Global Commercial Banking Market Executive and Head of the Restaurant Group at Bank of America. “To be chosen more consistently, operators need to make their value visible. That means a sharp pricing strategy, menus that balance desirability with margin, and genuine investment in service culture and the overall experience.”

According to the BofA Global data, standing out in this environment demands delivering unique value and appeal alongside the flexibility to continually adapt. Companies that match precise pricing with a differentiated experience are best positioned to earn repeat visits, O’Hara added. 

Financial Pressures and Operational Tactics

Financial pressure is a key factor driving greater selectivity among consumers with that price pressure quietly, but meaningfully shifting how diners weigh their options, O’Hara noted. According to the Bureau of Labor Statistics, food away from home was up 4.1 percent year-over-year in December 2025. 

One of the most telling signals in the current environment is the growing divergence between consumer spending and traffic, a dynamic that is increasingly shaping performance across dayparts. According to Bank of America Institute data, the average monthly spending per household on restaurants and bars in 2025 was $371, up 30 percent from 2019. Yet, visit frequency grew at only half the rate of per-visit spending. 

“Consumers are spending more when they go out, but their visits are not increasing at the same pace, O’Hara said. “That is an important distinction for operators when considering pricing, menu mix and occasion strategy.”

Operators who are managing through this environment are using dayparts and menu engineering as precision tools, retiring low-margin items and simplifying prep to reduce waste and labor time. They are also using premium sides, sauces and beverage upgrades to lift average checks without across-the-board price increases, she added.  

Generational Spending Dynamics

Millennials are an influential demographic in the industry, accounting for the largest share of spending across every restaurant type tracked by the Bank of America Institute. Attracting and retaining them requires understanding what drives their loyalty – innovation, quality cues and unique experiences, said O’Hara. 

“They enjoy limited-time offerings that create urgency, transparent sourcing and ingredients, and digital convenience, including seamless mobile ordering and loyalty rewards.”

There is also a broader generational story here amongst boomers, millennials and Gen Z consumers that operators should not overlook, O’Hara cautioned. The data found Baby Boomers were the fastest-growing generation of spenders in 2025, with notable spending on casual dining. They reward consistency, quality menu items and attentive service. Meanwhile, Gen Z is steadily increasing its share of spending across all restaurant types and is keenly focused on restaurants’ value stories. 

“Operators that successfully engage millennials are those that build a core offering strong enough to resonate broadly, delivering on quality, experience, and value- while leveraging loyalty programs, targeted promotions, and thoughtful menu innovation to connect with the distinct preferences of each generation.”

Category Challenges: Pizza and Casual Dining

According to the data, casual dining and pizza have each seen multi-year declines as consumers gravitate toward eateries that offer better value, convenience or novelty.  For pizza, the share loss reflects category saturation and shifting meal-time behavior. 

“The rise of QSR options with customizable bowls, handheld items and perceived healthier choices has created new competition in the weeknight convenience space, where pizza has historically dominated,” said O’Hara. “To recapture share, pizza operators need to lean into what QSR cannot replicate — the communal, shareable occasion — while also investing in digital and delivery capabilities where pizza has a natural advantage.” 

Innovation that goes beyond the traditional format, whether through premium ingredients or build-your-own customization, can help reignite relevance with consumers who feel the category has become predictable, she added.

For casual dining, the decline has been driven largely by a value perception problem: full-service prices rose without a corresponding lift in experience, and consumers increasingly questioned whether the premium was worth it, the report found.

But there is a genuine opportunity emerging as QSR prices have risen to the point that the gap between QSR and casual dining has narrowed considerably, and consumers are willing to spend a bit more for better quality and a genuine experience, O’Hara pointed out. 

“Casual dining operators who can sharpen their service culture, create an atmosphere worth lingering in, and offer a menu that balances quality with accessibility are well-positioned to recapture lapsed guests."

 Independent Operators vs. Chains

At the moment, independent operators are outperforming chains. Bank of America card data shows that independent restaurants have maintained a sustained advantage in spending growth relative to chains over the past year, especially among higher-income households. 

“These consumers tend to allocate a larger share of their dining spend to single-location and locally owned establishments because they gravitate toward novelty and authenticity, which chains struggle to replicate at scale,” said O’Hara. 

However, chains will likely regain share in 2026 for a few reasons, O’Hara noted. Their investments in digital ordering and loyalty programs are beginning to influence behaviors. Also, their scale enables them to deploy value messaging broadly and quickly when consumer price sensitivity demands it. 

“The most interesting development is happening at the franchise level, where operators are diversifying into newer growth concepts like 7 Brew, Dave's Hot Chicken and Hawaiian Bros, concepts that succeed because they have the energy and identity of independents, backed by the infrastructure of chains,” said O’Hara. “That combination, when it works, is difficult to compete with.”

Long term, the advantage will go to whoever best delivers what consumers are clearly signaling they want: a reason to visit that feels genuine and an experience that justifies the spend, she said. 

“Right now, independents are winning that battle and showing the broader industry what consumers value. The chains that pay attention and are willing to adapt will be the ones that close the gap.”

Navigating Tariffs and Supply Chain Risk

Tariffs are one of many variables that operators must consider. According to the Bank of America State of the Restaurant Industry Report, the looming effects of tariffs are a key concern, with uncertainty around what happens next, involving supply chains, input costs and the broader cost structure operators are managing against. 

Operators should do a thorough review of their supply chains, examining tariff exposures for critical items, suggests O’Hara. Then, based on that analysis, explore diverse suppliers and consider renegotiating contracts. Operators should also review cash flow projections, considering higher-for-longer cost scenarios. Beyond that, formal scenario planning — modeling a range of cost outcomes across best, base and worst cases — can help operators make faster, more confident decisions as conditions change, she added. Where possible, locking in pricing agreements with key suppliers now can provide meaningful insulation against future volatility. 

“Resilience has carried this industry a long way, but operators need careful planning to succeed in the current landscape.”