Consumers are still dining out, with some caveats

Consumers are gravitating toward cozy, intimate interiors. | Photo: Shutterstock

It’s tough out there for a lot of consumers. Young and low-income Americans have been hit hard by inflation, economic uncertainty and a weak job market this year. And that has made things difficult for restaurants, particularly fast-food and fast-casual brands that tend to target those audiences. 

Despite those challenges, people are still making a point to go out to eat. Casual-dining chains like Chili’s have been some of the biggest winners in the current economic environment. Even many independents have held steady: According to Toast, a major POS supplier for local restaurants, reservations rose in the third quarter compared to last year, while overall full-service transactions were about flat.

At the same time, consumers’ dining habits are also changing. They’re expecting more from restaurants as they look to stretch their dollars further and make those meals count. And they want to share their outings on social media, which is also impacting where they choose to dine.

New reports out this week from Toast and reservation platforms OpenTable and Resy paint a vivid picture of these changing dynamics. Here are some of the biggest takeaways from their research. 

Off-hour reservations are in

Customers are dining out earlier, in every sense of the word. Reservations for both breakfast and early-bird dinners are on the rise, according to Toast. 

Bookings for 9 a.m. rose 19% last quarter, the biggest increase for any time slot, followed by 10 a.m., up 15%. That was tied with the 4 p.m. slot, which also saw a 15% increase in reservations.

Late-night reservations, meanwhile, saw a slight dip: Reservations for 9 p.m. and 10 p.m. dropped by 1%.

Resy reported a similar shift, noting that more people dined at 4 p.m. than 9 p.m. this year. In surveys, consumers said they’re willing to eat earlier to beat the dinner rush and because they want time to relax after dinner. Or, in some cases, they want to leave room for a second dinner: A shocking 40% of Gen Zers told Resy they’ve had a two-dinner night. (That’s one way to build traffic.)

OpenTable data pointed to another possible reason for the early-evening growth: More demand for happy hour deals. 

On OpenTable, reservations were up 13% between 4 p.m. and 5 p.m. this year. It pointed to survey data showing that more than half of consumers want to see more happy hour promotions in 2026, part of a broader customer appetite for value as prices rise. 

Traditional dinner hours (5 to 7 p.m.) still made up the biggest share of reservations on Toast, but consumers are clearly spreading their visits throughout the day a bit more, which is a welcome development for operators. 

Dining out becomes a special occasion 

Consumers increasingly view going out to eat as an activity above and beyond their normal routine. According to OpenTable, 61% of Americans said dining out next year will feel more like a “special treat” than a regular habit. 

Naturally, this shift is going to have an impact on where people choose to dine. Customers are continuing to look for restaurants that offer an experience rather than just a meal.

On OpenTable, there was a 46% increase in “experiential” dining year over year, and 37% of consumers said they’d like to see more of that in 2026. This could include pop-ups, collaborations or “special experiences,” all of which would entice 48% of customers to dine at a restaurant, OpenTable found. 

Resy noted that diners are gravitating toward more intimate formats, like chef counters and bars “that prioritize atmosphere and connection over square footage.” It predicted that “listening bars” centered around music and mood will see a boost in popularity next year.

OpenTable likewise saw a 26% increase in counter seating and a 23% increase in bar seating year over year, and found that 26% of consumers expect to see more bar seating next year.

Social media is swinging visits

The look and feel of a restaurant may be just as important as the food these days as more consumers turn their dining experiences into social media capital.

A striking 77% of Gen Zers and 79% of millennials told OpenTable that they consider a restaurant’s “Instagram/TikTok-worthiness” when deciding whether to eat there. Overall, 58% of consumers feel that’s an important aspect of a restaurant.

So what can restaurants do to provide good social fodder? We already mentioned intimacy and counter seating. Nearly half (48%) of consumers also said “cozy/local charm” is their preferred restaurant atmosphere, and 20% said they expect to see more minimalist design in 2026, per OpenTable.

The food matters too: 47% of Gen Zers said that posting pictures of notable dishes is the best way to earn “aura points” with followers, according to Resy.

So what classifies as notable and therefore worth posting? Resy highlighted fish dip, mortadella and miniature martinis as trending menu items, while OpenTable observed a rise in nostalgic dishes like shrimp cocktails, chicken pot pie and meatloaf. Matcha also continues to be a “must-have.” 

Whatever vibe a restaurant chooses to cultivate, note that it should not end in the dining room: 21% of consumers told OpenTable that they expect to see more “Instagrammable bathrooms” next year for those crucial mirror selfies.

There’s pent-up demand for dining out

Perhaps the most encouraging figure was that 55% of consumers expect to spend more on dining out next year, with a planned 10 visits per month, according to OpenTable.

It wasn’t clear whether that means they’d like to visit more expensive restaurants, or just splurge a little wherever they go. Either way, it suggests consumers are feeling more hopeful about their finances going into the new year.

Of course, what consumers say is not always what they do. Elsewhere, Americans’ outlook on the broader economy is growing dimmer: The consumer “Expectation Index” fell 2.9 points, to 71.5, in October, according to The Conference Board, which notes that anything below 80 signals a recession could be ahead.

Still, restaurants remain a soruce of escape and human connection in an increasingly online world. Resy, for instance, reported a high level of interest in communal tables, where respondents said they’ve met new friends and even scored a date. And nearly 80% of consumers told OpenTable that dining out is a way to feel connected to others.

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