News Bites – July 2025
Rising Weekly Restaurant Visits Signal Recovery Signs
Consumer sentiment scores improved slightly in June after a six-month decline, but diners still hesitate to return to restaurants. While economic uncertainty prevails, Big Chalk Analytics reports increased participation rates and visits per week since Q4 2024. Trade-off households are growing, leading to more consumers prioritizing groceries over dining out. Nonetheless, stable household budgets and effective promotions could encourage more restaurant visits and engage trade-off consumers in the coming months.
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AI Steps Up as Essential Assistant within Restaurant Industry
Investment in AI has become essential for restaurants, integrating voice AI, chatbots, and predictive analytics to enhance customization. This month, companies like OpenTable and SpotOn launched new AI features to personalize dining experiences and improve customer engagement. Restaurant tech mergers and acquisitions increased 45% in 2025, driven by industry maturation. Meanwhile, SpotOn continues to innovate with Picked for You and GoTo Place tools. Lastly, Flytrex and DoorDash partner to offer convenient, suburban-focused drone deliveries.
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Restaurants Embrace WNBA Boom with Strategic Alliances
The WNBA witnessed record 2024 attendance, TV viewership, and merchandise sales growth, highlighting the rising value of women’s sports. Restaurant brands are capitalizing on this trend with partnerships and sponsorships. Wingstop partnered with rookie Paige Bueckers, while El Pollo Loco teamed up with Arike Ogunbowale. McDonald’s created the Angel Reese Special meal, and Red Lobster sponsored the Chicago Sky, supporting women in sports. Raising Cane’s signed multi-year deals with the Dallas Wings and Chicago Sky, emphasizing female athlete empowerment.
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The First Half of 2025 Sees Steady Casual Dining Visits
In early 2025, full-service restaurants saw only a slight 1.5% overall visit decline, with stable visits per location. Many brands like Red Lobster and Applebee’s closed locations, absorbing traffic into remaining sites. Fast-casual chains grew faster than quick service, attracting higher-income consumers. Fine dining and coffee visits increased, driven by new openings. Each dining segment dominates specific dayparts, with QSR leading late nights and coffee leading mornings. Overall dining visits were stable, with increases in 14 states.
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June Marks Fifth Consecutive Month of Rising Restaurant Menu Prices
In June, inflation rose to 2.7% annually, with food prices up 0.3% from May. Menu prices climbed 0.4%, led by the full-service category, increasing 3.8% year-over-year. The West saw the highest regional menu price growth at 4.1%. Restaurant prices have outpaced grocery prices for 27 months, but the gap narrowed to 140 basis points. Despite inflation challenges, its impact on the restaurant industry is easing compared to recent years.
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Check out last month’s news bites: News Bites – June 2025!
