With the National Restaurant Association completion of their annual trade show in Chicago, many exchanges of ideas transpired during the annual show. It’s tough out there—consumers are feeling the pressure. Research shows that consumer sentiment is at its lowest point, even since the pandemic. “In other words, the state of the consumer is ‘complex.’ This is how National Restaurant Association Senior Vice President of Industry Research and Knowledge Chad Moutray opened up Saturday’s session at the National Restaurant Association Show titled, ‘The 2026 State of the Industry: Position Yourself for Success in the Face of Uncertainty’,” writes Alicia Kelso for Nation’s Restaurant News (NRN).
And while sentiment is only quantifiable in theory, there is hard data that points to the “why” sentiment is taking a nose-dive. “35% of consumers now say they spend more than they take in every month, while two-thirds say they’re struggling to make ends meet,” Moutray adds.
Thankfully for the industry, “The good news for restaurants is that people are still prioritizing going out to eat.” Which speaks to how important hospitality is. Even when feelings are bleak, restaurants are a place consumers can go to feel a since of normalcy and joy. “Restaurant operators should still cater to anxious consumers, who are looking for more discounts and fewer add-ons,” Kelso says. There are a few restaurants that are doing just this, Fogo de Chão being one.
Michael Breed, chief marketing officer, explains, “It’s important for us to have price optionality and service [all] occasions,” he said. “The key proof point for us is how we’re doing on celebration moments, but mid-week, mid-sized parties, we’re seeing some softness.” This indicates that consumers are still dining out, but they’re redefining why and when.
Breed agrees with our restaurant consultants in perceiving this trend shift as an opportunity to offer more hospitality to guests and show up for what people need. “When consumers are under pressure, their expectations are only going up and our job in the hospitality business is to exceed those expectations,” he says. “That requires innovation and investment back into the consumer experience.”
Richard Weil, owner and principal of National Restaurant Consultants, includes additional perspective to this blog. “Restaurant owners that continue to focus on customer needs and the motivations behind current demands will not only survive these economic pressures in the economy but operators that subscribe to these leading principles will continue to build a loyal customer base in the future. The foundations for customers who will remember finding a good value, with genuine hospitality that includes smiles from staff in a friendly place at a time when it mattered most.”