For full-service restaurant operators, owners, and industry leaders, understanding the current diner mentality is crucial for sustained growth. The message is clear: value is now the number one priority for diners. Coupons, discounts, and value options are a top priority, but brands must also focus on providing convenience, an enhanced dining experience, and differentiation from unconventional rivals like convenience stores.
Redefining value in the full-service space
While price is certainly a factor, the concept of value is multi-faceted for consumers. Customers are seeking a critical balance among quality, portion, and price. There has been significant consumer pushback against “shrinkflation,” where prices increase while portion sizes decrease. Brands that are succeeding are showcasing greater value by hitting this essential balance, as exemplified by Darden’s great value offerings and viral promotions like Chili’s “three for me,” which includes a sampling of appetizers.
However, the consumer pursuit of value has led to significant changes in dining habits, often resulting in trade-down behaviors. A substantial 68 percent of casual dining consumers report dining out less often to save money, according to recent RRD data. Furthermore, 43 percent of these consumers say they are only dining out if they possess a coupon or discount. Even when they do dine out, 61 percent of casual dining consumers skip extras such as drinks, appetizers, and desserts in an effort to save money. This behavior confirms that diners are highly strategic and conscious about controlling their checks.
To address this, FSRs should focus on creating clear value signals that make dining out feel worth the spend. That means bundling menu items to offset perceptions of “shrinkflation,” highlighting everyday value meals on menus, and communicating that quality and portion still meet expectations. Reinforcing these points in marketing can reassure customers that they’re spending wisely.
The rising threat of grocery store competition
The most pressing competitive challenge for full-service restaurants is currently the grocery sector. This competition is reshaping the value discussion for both consumers and restaurateurs. While convenience remains a key driver for dining out, grocery stores are aggressively leveraging both convenience and price to gain market share.
This competitive trend has accelerated since 2025 and is projected to continue growing into 2026. Grocery stores are placing a heavy emphasis on prepared meals, which are products like subs and fried chicken in one ready-to-eat container. Some grocers even have a dining space that delivers a restaurant-like feel. These retailers are effectively transforming into competitors, challenging full-service restaurants (FSRs) with a quality and price point that is proving disruptive. For example, as restaurant chain pizza sales decline, grocery store pizza purchases are increasing. The Technomic Consumer Trend report shows consumers dining at pizza restaurant chains less often, but at the same time we see SKU level sales of frozen pizza increasing according to Circana.
To compete effectively against this convenient, price-driven rival, FSR operators should deploy a two-pronged strategy. They must, on one hand, craft a strong value proposition to directly counter grocery store pricing, while simultaneously elevating and highlighting the unique service and atmosphere only a full-service restaurant can deliver.
Strategic levers for driving traffic
FSRs can utilize strategic tools to drive traffic and encourage visits from value-focused consumers. These include:
Limited Time Offers (LTOs) and mass appeal
Promotions and LTOs are critical traffic drivers. We’ve seen this because coupons and discounts wield significant power: 57 percent of casual dining consumers have been influenced by a casual dining coupon to dine out when they were not initially planning to, according to RRD data.
To be successful, a great promotion should be heavily advertised for mass appeal. Visibility is paramount; focusing marketing efforts on reaching the broadest audience is the key to converting offers into traffic, customer loyalty, and increased sales.
Loyalty programs: scaling beyond the loyal core
Loyalty programs, including mobile apps, are considered table stakes for FSRs. However, they are insufficient for scalable growth because they only reward existing fans of the brand.
The next phase of growth requires FSRs to extend their reach beyond the loyal core by effectively targeting prospective diners who share the demographics and behaviors of their best customers and inviting them in.
Operators also face the challenge of high app churn, as consumers often have limited phone storage and will delete apps that aren’t constantly relevant and offering great deals. Future loyalty app development should prioritize convenience, incorporating features like easy ordering, personalization (e.g., suggesting reorders of previous meals), and simple payment options.
Optimizing takeout and delivery
Off-premises dining trends are evolving: curbside pickup and general takeout are expected to continue growing in popularity. In contrast, the high fees associated with third-party delivery services (increased menu prices, delivery fees, and tipping) are causing value-focused consumers to pull back, leading to an anticipated flattening or very modest growth in third-party delivery sales.
FSRs have a clear opportunity to drive traffic and increase value perception by encouraging consumers to order through their own apps or directly through their ordering systems, rather than relying solely on third-party platforms. While third-party services provide incremental orders, the major disadvantage is the loss of critical customer data, which hinders future marketing and loyalty efforts.
To mitigate this, restaurants should incentivize direct ordering by offering app-only discounts or loyalty points for first-party purchases. This approach preserves margin and also gives operators access to valuable customer insights that can inform promotions, menu design and re-engagement strategies. By reframing takeout as a direct connection rather than a transactional convenience, FSRs can turn off-premises demand into long-term loyalty.
Emphasizing the FSR difference: experience and service
FSRs need to fully capitalize on their inherent advantage: the quality food and unique dining experience that convenience rivals cannot replicate. The experiential opportunity is a crucial differentiator against the grocery sector.
Operators should focus on delivering superb service by treating employees as brand ambassadors and investing in elevated customer service training. Although location is often the primary driver for casual dining selection, an exceptional experience significantly strengthens the value proposition. By coupling coupons and discounts with high-quality service and experience, FSRs can effectively compete for the value-conscious diner.
Dana Baggett is Executive Director, Restaurant Client Strategy, at RRD. With a strong focus on data-driven campaign performance and innovation, Dana provides actionable insights and strategic direction to restaurant clients. Dana has 25+ years of experience and a proven track record to launch consumer insight initiatives, while also leveraging her expertise in areas such as category intelligence, analytics, and competitive analysis.
Read Dana’s other FSR Expert Take: Strategies for Operators to Compete as Consumer Dining Habits Keep Shifting
