Dive Brief:
- Attracting on-premise traffic will be a higher priority for restaurant operators than capturing off-premise visits in 2025, according to the National Restaurant Association’s State of the Industry Report 2025.
- Pent-up consumer demand for on-premise dining remains particularly strong, according to the report, with 81% of consumers saying they would eat at full-service restaurants more frequently if they had more money to spend.
- Restaurants are prioritizing on-premise service across segments. For example, 60% of QSR operators said on-premise visits would be more vital in 2025 than off-premise, while 90% of fine dining operators said the same, according to the report.
Dive Insight:
Major brands like Starbucks and Cava are in the middle of efforts to improve their on-premise ambiance and make their stores more appealing places to linger. Even Subway is looking to keep consumers around longer with wood tones and warmer lighting.
Other on-premise factors are vital as well, even for QSRs. About 73% of limited-service restaurant customers selected store cleanliness as one of the most important factors determining their visit, according to an NRA survey.
The NRA also found significant consumer interest in specific on-premise occasions that could draw new diners. About 70% of adults, including 79% of Gen Z, said they would be interested in tasting events at restaurants that feature curated menu selections. A slight majority also expressed interest in private dinners at restaurants, while half said cooking classes were a potential draw.
Bo Davis, CEO and co-founder of MarginEdge, a firm that makes restaurant management software, said in-store experiences are an important factor in a restaurant’s total value proposition.
“It's only natural, because anyone who has operated restaurants knows it isn't just the food,” Davis said. “Amazing food will bring people in one time, but amazing ambiance and culture will bring them in over and over and over, even with mediocre food.”
Davis cited consistency and atmosphere as key factors that keep consumers coming back, sometimes for decades.
“I've eaten at the same diner here in Arlington,[Virginia], since I was in college in the ’90s. I went there last week, it’s exactly the same as it was in the ’90s,” Davis said.
