Trends in Restaurant Spending and Consumer Behavior

This report examines trends in restaurant spending and consumer behavior in the dining sector as of February 2026. It outlines how restaurant spending has increased its share of overall retail sales since 2020, although growth moderated in the latter half of 2025 due to a slowing labor market. The report details that consumers are becoming more selective in their dining choices, with a noticeable shift towards establishments that offer better value and innovation. It highlights that independent restaurants have shown stronger spending growth compared to chains, particularly among higher-income households. The report also notes that younger generations, especially Millennials, account for a significant portion of restaurant spending. Additionally, it discusses the impact of economic factors on dining habits, including the rising costs of eating out and the changing preferences among different income groups. The document concludes with expectations for the restaurant industry in 2026, emphasizing the need for operators to adapt to a competitive market.