Value Is the New Battleground for Loyalty

A third of diners said their favorite restaurant changed in the past 12 months, with “better food” (46 percent) and “better value” (40 percent) cited as the leading reasons, according to Tillster’s 2025 Phygital Index Report. The report found that loyalty is eroding as brands worked hard to offer new limited time offers, value meals, upgraded loyalty programs, and digital innovations.

The survey of 1,500 U.S.-based diners who recently ordered from a QSR, fast-food or fast-casual chai also found that value is about more than just price. Diners are looking for a better overall experience, from streamlined ordering to more inviting restaurant environments.

Among the report highlights:

• Cost-conscious diners are rolling back their spending, not cutting it out: 45 percent of surveyed diners report they are visiting restaurants less often due to rising prices, with nearly half saying they’ve decreased their dining-out budgets in the past six months. At the same time, 21 percent say they’ve increased their budgets in 2025 – showing that while some are pulling back, others still see dining out as a worthwhile indulgence.

• Even as QSRs continue to dominate the value conversation, 24 percent of surveyed diners say they’re visiting convenience and grocery stores more frequently than they did 12 months ago – a higher increase than those returning more often to QSR (18 percent) or fast-casual (16 percent) chains. 

• For the third year in a row, consumers want more kiosks. 61 percent of kiosk users say they want to see more kiosks in restaurants – up from 57 percent in 2024 and 36 percent in 2023. 

• Diners are willing to embrace voice AI. Technology that once felt futuristic is quickly becoming standard. 60 percent of diners say they feel comfortable using voice AI at the drive-thru, with Gen Z even more enthusiastic at 67 percent.

To delve more deeply into the results, Modern Restaurant Management (MRM) magazine reached out to Hope Neiman, Tillster’s chief marketing officer.

In what ways do the results differ from last year and what factors were at play? Have guests’ needs changed?

The findings from this year’s Phygital Index Report underscore just how significantly consumer spending behaviors are shaping restaurant engagement, even more so than in previous years. Guests are significantly pulling back their discretionary spending, which is directly influencing when, how, and what they choose to order at quick-service and fast-casual restaurants. While personalization and ease of ordering remain high priorities, value has emerged as the driving force behind guest decisions in 2025.

One of the most notable shifts is the growing demand for self-service kiosks. In 2023, 36 percent of kiosk users said they wished more restaurants offered self-service options. That number rose to 57 percent in 2024, and now stands at 61 percent in 2025 – a clear signal that kiosks are just a trend, but a guest expectation. This reinforces that consumers increasingly value the customization, control, and frictionless experience kiosks provide, and are actively seeking them out as part of their ideal ordering journey.

To keep guests coming back, operators must provide a value proposition where convenience, quality, and personalization are all part of the equation.

Brand loyalty has also shifted significantly, with 33 percent of consumers saying their favorite QSR or FSR brand has changed within the past year.  This is a clear signal that today’s diners are more willing to switch brands in search of better value – but that shift isn’t driven by price alone. When asked to define value in their dining experiences, consumers cited price (59 percent), food quality (56 percent), and order accuracy (33 percent) as the top factors, suggesting that diners are evaluating value through a much broader lens.

Loyalty program participation is growing steadily, with 65 percent of consumers now enrolled in at least one program, up from 61 percent last year. And they’re not just joining — they’re using them more actively. In fact, 30 percent of consumers say they’re leveraging loyalty programs and offers more frequently to help balance rising costs. However, while engagement with these programs is increasing, the number of programs consumers actually use remains limited — 34 percent say they belong to only two or three programs, and 35 percent don’t participate in any at all. This highlights a key opportunity for operators to deepen loyalty by making programs more compelling. To encourage sign-ups and regular use, brands must go beyond basic discounts and instead offer personalized perks, seamless digital integration, and meaningful rewards that stand out in a crowded marketplace.

While affordability remains crucial, guests are making more experience-driven decisions than ever before. To keep guests coming back, operators must provide a value proposition where convenience, quality, and personalization are all part of the equation.

What should operators take away from the results?

One of the most important insights for operators is that the days of assuming customer loyalty is over.

The good news? This also presents a huge opportunity. Diners are still eating out, they’re just more intentional about who earns their business. They’re gravitating toward brands that consider value through that broader lens of price,  food quality, order accuracy, convenience, and personalization. 

Operators should take this as a call to action: double down on meaningful, phygital engagement. Ensure every channel – whether it's an app, a kiosk, or the drive-thru – conveys the same level of care, convenience, and customization. It’s not just about keeping up anymore, it’s about staying ahead of shifting expectations.

How long do you anticipate the value trend will continue and what can operators do to reach the value-seeking guest?

Value will remain a dominant theme well beyond 2025, especially as economic pressures and consumer expectations continue to evolve. But crucially, the way guests define and seek value is becoming more sophisticated. We're not likely to see diners abandoning their expectations for quality or convenience any time soon, even amid adverse economic forces.

To reach the value-seeking guest, operators must emphasize a complete value equation: good food, consistent service, and digital convenience.

To reach the value-seeking guest, operators must emphasize a complete value equation: good food, consistent service, and digital convenience. Tools like loyalty programs and self-service kiosks aren't just operational upgrades. They're opportunities to make guests feel in control and appreciated. Using data to personalize promotions, surprise and delight guests with add-ons, and streamline the ordering process across platforms are all ways to show value beyond price. The brands that consistently reinforce “you’re getting more than what you paid for” will be the ones that thrive.

Tools like loyalty programs and self-service kiosks aren't just operational upgrades. They're opportunities to make guests feel in control and appreciated. Using data to personalize promotions, surprise and delight guests with add-ons, and streamline the ordering process across platforms are all ways to show value beyond price. The brands that consistently reinforce “you’re getting more than what you paid for” will be the ones that thrive.

In a time where everyone is cost conscious, how can restaurant operators make the best investments in phygital offerings that will help them be more efficient, hopefully profitable, and responsive to guest needs at the same time?

As price sensitivity rises, it's crucial that restaurant operators make smart, future-forward investments in their phygital strategy. While 45 percent of diners say they are visiting restaurant chains less often due to price increases, they’re not walking away entirely. Many are engaging more heavily with loyalty programs and seeking personalized deals to stretch their budgets without sacrificing experiences.

The best phygital investments eliminate friction, reinforce brand trust, and meet guests where they are. In today’s cost-conscious landscape, that’s the definition of value.

Aggressive discounting, which erodes profit margins and fails to foster long-term loyalty, isn’t the answer to navigating this wave of consumer spending pull-back. Instead, operators should focus on delivering value through other channels beyond price – like convenience, personalization, and consistency – across every guest interaction. Phygital technologies, particularly self-service kiosks and unified digital ordering channels, are pivotal to this strategy.

Kiosks, for example, both streamline operations and reduce labor pressures, but also create high-impact, personalized ordering journeys. Guests can visually explore menus, customize with ease, and redeem loyalty rewards, turning a transaction into a tailored experience. Operators will see impacts not only on guest satisfaction, but on revenue as well as 76 percent of kiosk users say they order more than they intended. 

On the digital side, customers expect mobile apps and websites to offer fast, consistent, and intelligent ordering experiences. For instance, 68 percent of website and app users value the ability to save customizations for quick reordering, and 61 percent want their in-person orders remembered within the app. This underscores a crucial need for fully unified ordering ecosystems that deliver seamless experiences across all touchpoints.

The best phygital investments eliminate friction, reinforce brand trust, and meet guests where they are. In today’s cost-conscious landscape, that’s the definition of value. When executed thoughtfully, these investments drive profitability and guest satisfaction simultaneously while setting the foundation for long-term loyalty.

How can operators best prep to add kiosks into a storefront?

Successfully adding kiosks to a storefront goes far beyond plugging in new hardware. It’s about creating a thoughtful ecosystem that enhances both the guest experience and operational efficiency. Operators need to take a strategic approach to layout planning, system integration, and guest adoption to encourage use and reap the revenue and loyalty benefits of the tech.

To drive long-term success, kiosk experiences must be intuitive and user-friendly.

Start by evaluating the physical layout of the store to determine optimal kiosk placement. Kiosks should be installed in high-visibility, high-traffic areas, like near an entrance or by digital menu boards, to naturally guide guests into a self-service experience. They should be directly in the line of entry as they make their way to counter.  When kiosks are tucked away or placed too far from the entry point, guests are far less likely to notice or use them.

Just as important as physical placement is the digital layout of the kiosk interface. Kiosk users represent both “beeliners,” those in a hurry, and “explorers,” those that are open to finding new items or customizations that can enhance average check.  The software and experience is key to success.  Not only do you have different digital experiences from a kiosk, but operators should consider how customers interact with kiosks differently than they do with other digital channels like mobile apps. For instance, kiosks have large, vertical touchscreens that allow brands to feature rich imagery, upsell prompts, and menu exploration opportunities without overwhelming the user. In contrast, mobile apps are often used primarily with speed and convenience in mind, meaning their layouts must prioritize efficiency through quick-access buttons, saved orders, and one-tap reordering. To drive long-term success, kiosk experiences must be intuitive and user-friendly. The design should make ordering feel seamless and enjoyable so guests are more encouraged to use the technology again and again.

To reap the full value from kiosks, they must sync with existing POS systems, loyalty programs, and kitchen display systems. That means operators need to audit their current tech stack to ensure it’s ready for integration. They should ensure that menu items and pricing are consistent across all ordering channels, loyalty programs are fully integrated so guests can earn/redeem points at the kiosk, and inventory is synced in real time to prevent frustration in ordering experiences.