Editor’s note: This is part one of a multi-part series on the state of the full-service restaurant consumer. Part two can be found here.
As lagging traffic across much of the industry suggests, inflation and uncomic uncertainty have begun to affect restaurant visits. TouchBistro, in its 2024 American Diner Trends Report, said results from this past year—more than 1,500 consumers surveyed—show a clear contrast to 2022, when most guests appeared willing to absorb higher costs.
Many are dining out less and when they do, they’re proving more sensitive to price hikes. They’re also seeking ways to save, from direct ordering to basket managing.
Yet despite sensitivity, TouchBistro found, Americans still want to visit restaurants, and namely, tap full-service experiences to reconnect. Value for money, convivence, and quality of food are playing lead roles in deciding when and where to eat. Meanwhile, online reviews, social media presence, and cachet are less significant considerations than a year ago for consumers fueled more by spending concerns.
There has also been a clear shift in the perception of tech. Customers embrace the idea, especially if it makes visiting or ordering faster and easier, but they’re pushing back against the removal of the human element. That, too, is likely a reflection of reframing value when everything feels more expensive, from what you stream on TV to the water bill. It’s emphasized the “worth” of experience beyond price. Put differently, if dining out costs more everywhere, did I actually get what I paid for?
The baseline:
Overall, diners are making fewer trips to restaurants than they did in 2022. TouchBistro found 39 percent of Americans dine out weekly. That figure was 48 percent the prior year.
They’re increasingly sensitive to price hikes. The number of U.S. guests highly concerned about menu price jumped considerably, up 8 percent to 31 percent. Those respondents said if a restaurant increased its prices, it would significantly impact their interest in dining there. Additionally, 43 percent noted price hikes would somewhat impact their interest.
When searching for rewards, many diners said they look to quick-service brands. Loyalty programs have surged—46 percent of consumers reported they’re currently part of one, up 10 percent, year-over-year. Reward programs at counter-serves were by far the most common (81 percent). It was an eye-opening 97 percent for Gen Z diners.
More and more, guests are beginning their journey online. Eighty-five percent said they look at the menu digitally first, while 80 percent view a restaurant’s website. Also, 64 percent noted they conduct a Google search. “In other words,” TouchBistro said, “it’s clear that a consumer’s first experience with a restaurant is usually online.”
On that note, perhaps driven by value, an increasing number of respondents said they’re choosing to place takeout orders direct through restaurants versus third-party. They credited the fees and said they’d rather order takeout by calling the restaurant (29 percent), using its website (24 percent), or the establishment’s own app or platform (19 percent). The majority of diners were looking to save money by picking up their food (30 percent). Gen Z, again, was an outlier, preferring delivery (46 percent).
Not unlike data recently revealed by FSR’s NextGen survey, great food and service beat out flashy tech in terms of what’s inspiring frequency. When choosing where to eat, food quality (67 percent) and cuisine type (54 percent) paced results. Only 2 percent expressed a desire for AI-generated order recommendations. Additionally, 85 percent said they prefer to order from a physical menu and speak to a server. Only 4 percent said they prefer QR codes.
Time, however, remains a precious commodity. The average time diners said they’d wait for a table was 22 minutes. Anything over 25 was a “huge deterrent.” And when it came to takeout and delivery, consumers reported they’d wait a maximum of 30 minutes on average before cancelling their order.
So in deciphering “what diners want” from their restaurant experiences in 2024, it can be outlined in three ways: savings, convenience, and connection.
“Value” is a puzzle of trying to surpass customer needs and expectations with service that makes them feel like they spent their money in the right place.
Starting with dine-in and takeout frequency, the latter took center stage in TouchBistro’s report. Dine-in rebounded last year, but guests showed a slight shift back to ordering takeout. On average, 39 percent of Americans said they were dining out weekly (as noted), compared to 48 percent in 2022. However, 43 percent said they were ordering takeout at least once per week. That was materially up from 29 percent in 2022.
“This is understandable,” TouchBistro said, given that takeout bills tend to be smaller than dine-in checks, making takeout and delivery a more attractive option for consumers during this period of high inflation.”
As one respondent shared: “My family is kind of selective about when we actually go eat at a restaurant. It’s usually more of a social thing or a special occasion. In a given month, we’ll go out [to eat] maybe three to four times. But we do takeout about two to three times a week.”
Gen Z consumers and loyalty program members were expectations. Sixty-four percent of Gen Z and 47 percent of loyalty users reported dining out weekly or more often, and 69 percent of Gen Z and 49 percent of loyalty members got takeout and delivery with the same frequency.
Another interesting development was, although dining out fewer times, average spend didn’t move all that much among customers. On average, Americans in TouchBistro’s report said they were spending $48 on dine-in ($2 more than in 2022) and $31 on takeout/delivery ($3 less than the prior year). “It’s likely menu prices are causing overall spending to hold somewhat steady, even though Americans have shifted their dining habits,” TouchBistro said.
Brands like Texas Roadhouse and The Cheesecake Factory have also outlined of late that diners are managing checks closer than previously, whether that means forgoing an alcoholic drink or exploring more price-conscious tiers of the menu (such as the sirloin).
Not all groups cut back on spending evenly, though. Gen Z and loyalty members—a theme is forming—reported spending far more on dine-in and takeout than others. Gen Z was $51 for dine-in ($3 above average) and $38 for off-premises ($7 above average). Loyalty users were at $49 for dine-in ($1 above average) and $32 on takeout/delivery ($1 over the mean).
Building on the notion of “connection,” diners in the survey said they most often look for fast casual (28 percent) and family style spots (28 percent) when dining in. Fast casuals were especially popular among Gen Z, Gen X, and loyalty program diners seeking convenience and casual settings for quick social meetups. Millennial parents and Boomer grandparents showed preference toward family style spots.
Also, respondents noted they primarily dine out with their significant other (56 percent) or family (49 percent), but rarely alone (82 percent said they never dine solo), suggesting dining out remains, costs included, “a social activity for most Americans,” TouchBistro said.
Types of restaurants diners look for most often when dining out
- Family style: 28 percent
- Fast casual: 28 percent
- Fast food: 16 percent
- Bar/grill: 12 percent
- Fine dining: 7 percent
- Brasserie/bistro/café: 6 percent
- Other: 2 percent
When it came to chains versus independents, there wasn’t much divide. Thirty-seven percent said they flock to chains, and 35 percent expressed a preference for independents.
Chains tend to boast rewards programs and consistent offerings more commonly, which TouchBistro believes is why they appealed to millennials (42 percent), Gen Xers (41 percent), and loyalty users (41 percent) in this survey. Conversely, Gen Zers and Boomers have more free time and thus, gravitate toward local spots they can discover.
Type of restaurants diners look for most often when dining out
- Chain/franchise: 37 percent
- Local/independent restaurant: 35 percent
- Part of a restaurant group: 6 percent
- Don’t choose based on ownership: 19 percent
- Don’t know: 3 percent
Like 2022, less than half of diners (38 percent) said they try a new restaurant every few months. Another 34 percent suggested they rarely try a new restaurant. So, the vast majority of guests are loyal to favorite spots.
For operators, TouchBistro said, this information is crucial because it underscores how important it is to continue nurturing core users, as they provide the bulk of recurring revenue.
Gen Z, yet again, was an expectation. They are big fans of exploration. Over a quarter (27 percent) said they were visiting new restaurants several times per week, while zero percent of Boomers noted the same. Boomers are open to the notion, but they tend to do so slowly over months.
Part two of this series will begin with takeout and delivery preferences, before diving into what kind of technology guests want at the table, and what truly matters to their satisfaction. Read it here.
