When Confidence Drops, So Does Dining Out: What Low Consumer Confidence Means for Restaurants
Let’s face it—when people start to feel uneasy about the economy, restaurants are often one of the first places they cut back. Whether it’s skipping the morning coffee run or trading dinner out for something homemade, low consumer confidence can seriously shake up the restaurant industry.
And that’s exactly what’s happening right now.
People Are Feeling Nervous—And It Shows
In April 2025, the Consumer Confidence Index dropped to 92.9. That might not sound dramatic, but anything under 100 signals that folks are feeling more pessimistic than optimistic. The last time we saw numbers like this was during the pandemic.
Why does this matter? Because when people get worried about inflation, job security, or just the overall economy, they tend to pull back on spending—especially on non-essentials like dining out.
🍟 Even the Big Guys Are Taking a Hit
You’d think fast-food giants like McDonald’s and Chipotle would be pretty recession-proof, right? Not so much this time around.
- McDonald’s just posted its biggest drop in U.S. sales since the COVID lockdowns—down 3.6% in Q1. A lot of that is from middle-income guests who are skipping their usual breakfast stop on the way to work.
- Starbucks and Chipotle are also seeing sales slow, especially with their more affluent customer base tightening their belts.
- Domino’s noticed that people are choosing to walk in and carry out rather than order delivery to avoid extra fees. That’s a clear sign people are getting more intentional about every dollar they spend.
Even brands that usually hold strong in tough times are adjusting their game plans.
🧠 People Are Changing the Way They Dine
With confidence down, we’re seeing some big shifts in how people are eating:
- They’re going out less often, especially to sit-down places.
- They’re looking for value—think $5 meal deals, coupons, and happy hours.
- They’re cooking at home more, even for meals like breakfast that used to be easy wins for quick-service spots.
All of this adds up to a big question for restaurant operators: how do you stay relevant when your customers are feeling cautious?
💡 How Restaurants Are Adapting
Smart operators aren’t just sitting back and waiting this out. They’re pivoting fast:
- McDonald’s is rolling out a $5 meal to win back price-conscious customers.
- Taco Bell and Chili’s are leaning into promotions to drive traffic.
- Menu innovation is picking up too—new items that feel exciting and affordable are helping get people back in the door.
- And loyalty programs and great service? They matter now more than ever.
It’s all about showing your guests that you get what they’re going through—and giving them a reason to still treat themselves now and then.
🚨 Bottom Line
Consumer confidence may be down, but that doesn’t mean restaurant sales have to be. The brands that listen, adapt, and find smart ways to offer value are the ones that will come out ahead.
Want to dive deeper? Check out this LinkedIn article for more insights into what’s working and what’s next.
Let’s keep the conversation going.
Are you seeing changes in your guests’ behavior? Have you tried any new tactics that are helping? Drop your thoughts in the comments or shoot us a message. Contact Mark here >>>
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