Consumers pulled back on dining out in Q1: Restaurant Brands faced headwinds but saw an April rebound, while Krispy Kreme is changing course to regain momentum.
Tariffs cast a shadow over consumer spending in Q1: Growth slowed from 4.0% in Q4 to just 1.8% in Q1 as households sharply cut back on goods.
51% of US adults would prefer not to use AI drive-thrus because they “replace human jobs,” according to a January YouGov survey.
Sluggish spending in February signals a challenging year: Consumers are curbing discretionary spending as sentiment plunges to the lowest level in over two years.
50% of US adults are likely to cut back on spending at fast food restaurants if tariffs lead to higher prices, according to a February 2025 CivicScience survey.
Less than a third of US consumers with a household income of more than $100,000 see fast food as a luxury, compared with 71% of consumers with an income of less than $30,000, according to April 2024 data from LendingTree.
47% of restaurant operators plan to add discounts, deals or value promotions this year: But McDonald’s disappointing results highlight the challenges of that strategy.
Twin Peaks went public as a standalone company: Investors’ response to the sports bar chain could determine whether companies like Panera and Inspire Brands—parent of Dunkin’—IPO this year.
Starbucks’ turnaround takes shape: While US comp sales fell for the fourth-straight quarter, CEO Brian Niccol is confident that investments in the store and worker experience will bear fruit.
Shake Shack looks to broaden its reach: The burger chain plans to more than quadruple its footprint in the coming years while preserving its status as a premium brand.
QSRs resume the value wars in 2025: McDonald’s, Taco Bell, and Wendy’s are among the many fast-food chains leaning on deals to drive traffic.
Serve Robotics stockpiles cash ahead of planned expansion: The company aims to have 2,000 delivery robots on the streets by 2025’s end.
The minimum wage will rise in 23 states next year: That will eat into retailer and restaurant margins, leading some to hike prices at a time when consumers are incredibly price sensitive.
Green shoots emerge in the restaurant industry: After a challenging 2024, executives have reason for optimism in the year ahead.
QSRs may need to evolve to better serve online orders: Pizza Hut and McDonald’s are both testing new store formats focused on digital and drive-thru customers.
Key stat: Price inclination for food away from home was up 3.8% YoY in October 2024, higher than the 1.1% increase in inflation for food at home, according to data from the US Department of Labor’s Bureau of Labor Statistics.
McDonald’s will focus on “McValue” in 2025: The fast-food chain plans to extend its $5 value menu and add deals as the QSR price war rages on.
McDonald’s value focus paid off in Q3: But challenges remain as the company needs to dig out from the recent E. coli outbreak.
Consumers still think fast food is too expensive, despite the value meal wars: While deals are boosting foot traffic in the short term, operators face long-term difficulties as customers either trade up to fast-casual chains or pull back entirely.