The great dining trade-up

Restaurant operators evolve products and services as ideas around ‘value’ shift

Ahead of the 2024 Prosper Forum, AlixPartners published its annual report on the state of the restaurant industry, featuring data on consumer, operator, and worker sentiments. 

At a glance:

• Consumer debt is rising, but rather than trading down, diners are reducing visits and prioritizing dine-out occasions. Steady price hikes are hitting fast food and casual dining restaurants the most—over a quarter of consumers say QSR offerings have declined in value.
• Operators have an opportunity to right the value proposition through targeted menu innovation, promotions, and consistency.
• Where operators once viewed AI and automation as a key threat, they are now investing in AI solutions across customer-facing, administrative, and operational functions. Nearly 3 in 5 operators see AI as their biggest opportunity.
• Almost 9 in 10 (87%) respondents to the U.S. Restaurant Worker Survey say new technologies in the restaurant have positively impacted their job duties and responsibilities and improved efficiency and customer satisfaction. Their desire for DE&I initiatives to improve employee belonging has increased slightly.

To read the full report, go here.