Restaurants Fight to Keep Customers Happy in 2025

People are eating out less often and spending less money when they do. This is because of higher costs like rent and child care, as well as economic uncertainty. Restaurants are feeling the pinch and are trying to win back customers by offering more value. Fast-food chains like McDonald's, Taco Bell, and Burger King are leading the way with combo meals and value menus. McDonald's, for example, has introduced a $5 value meal and a buy one, get one for $1 deal. This has helped the chain win back some customers and attract new ones. Casual-dining chains like Chili's are also focusing on value. Chili's has reported double-digit same-store sales and traffic growth every quarter of the year. The chain's success is due in part to its $10. 99 Big Smasher meal and the virality of its Triple Dipper promotion.Fast-casual chains, on the other hand, have largely stayed out of the value wars. This has led to underwhelming results for chains like Cava, Sweetgreen, and Chipotle. These chains are facing increasing pricing competition from both fast food and casual-dining chains. Restaurants are also facing rising costs, particularly for beef. This means they will have to choose between preserving their profit margins by hiking menu prices or holding onto customers. The value wars are likely to intensify, particularly in January, when diners are trying to stick to New Year's resolutions, adhere to stricter budgets, or stay warm during winter storms.