Tillster believes its new consumer sentiment report highlights “one of the most fragmented foodservice landscapes in history.” Quite simply, loyalty among restaurant customers is plummeting.
The report, released Monday, reveals a breakdown in loyalty, as diners re-evaluate what impacts their dining decisions. As a rough economy leaves consumers clinging tightly to their wallets, they’re demanding a great experience on the rare occasions when they do visit restaurants; food quality (45%) and convenience (44%) are the top two factors determining where diners eat right now.
Tillster, a provider of unified commerce solutions for chains, calls the fundamental shift in the industry “Restaurant 2.0.”
“The most striking finding this year is how dramatically price has fallen as a driver of dining decisions,” Hope Neiman, Tillster’s CMO, told The Food Institute. “In an environment where consumers are clearly watching their budgets, you might expect price to dominate. Interestingly, consumers said food quality, convenience, and speed are the top three factors that influence where they dine – that validates a broader change in how diners are making decisions and what they expect from a restaurant experience.”
“As restaurants continue to prioritize discounting, they’re overlooking the experience factors that actually drive dining decisions” Tillster wrote. “As a result, consumers are shifting away from their go-to brands, changing how they spend, and shifting toward C-stores and grocery options.”
A few of the most eye-opening findings from the report include the following:
- 69% of diners say they have decreased or maintained their dining-out budgets due to economic conditions
- 45% of consumers say their favorite restaurant has changed in the last year
- 28% of diners say they’re dissatisfied with loyalty programs they belong to
Tillster surveyed 2,144 Americans to gauge their evolving dining preferences. The data reveals what, exactly, consumers expect from restaurants in 2026.
For one thing, consumers are making more intentional tradeoffs when it comes to the ordering experience. A majority (61%) of consumers are cutting out delivery, having abandoned an order due to service fees, while 33% are choosing lower-priced items, and 26% are tipping less. Such shifts illustrate that diners are quick to change behaviors when the experience no longer feels worth it.
The breakdown in loyalty is especially apparent when examining how consumers view traditional restaurants versus C-stores and grocery stores.
Roughly 29% of diners said they’re going to fast-food chains less frequently these days.
Conversely, 36% of consumers are going to grocery stores more and 33% are visiting C-stores more frequently. With non-traditional foodservice players continuing to win more consumers, restaurants must move beyond simple discounting and prioritize personalized experiences, according to Tillster.
“The findings from this year’s report point to a fundamental shift in the industry,” Tillster CEO Perse Faily said in a statement. “As consumers place greater emphasis on experience over price, brands have to move away from the ‘tech for tech’s sake’ mindset they’re operating in today.
The Restaurant 2.0 shift is defined by the ability to deliver seamless, consistent experiences across every physical and digital touchpoint, the CEO added.
“The data makes clear that adding technology isn’t enough on its own, and what drives repeat visits is how well that technology works together to create a consistent, frictionless experience from app to kiosk to counter,” Neiman said. “The restaurants embracing that shift are the ones best positioned to earn loyalty in this environment.”
The Food Institute Podcast
In this episode of Food for Thought Leadership, Food Institute Chief Content Officer Kelly Beaton steps in as guest host to interview Fransmart CEO Dan Rowe on the evolving restaurant labor market. Rowe challenges operators to view labor not as a cost to minimize but as a strategic investment, noting that the most successful brands are those that “staff for the sales they want” and prioritize retention, engagement, and culture amid ongoing workforce constraints.
