Foodservice traffic continues to fall as consumers cut costs

New data from a survey by YouGov, a research data and analytics group, revealed that 37% of consumers say they are dining out less frequently than in 2024. Lower-income diners report the most significant decline in dining out, with 44% eating away from home less often this year.

Operators report witnessing a similar decline in traffic, according to the National Restaurant Association’s (NRA) Restaurant Performance Index. The association’s monthly index found 52% of operators said they had less traffic in September 2025 than September 2024, up from 42% who reported less traffic in August 2025 than August the year prior. September’s findings marked the eighth consecutive month where operators reported a net decline in customer traffic, according to the NRA.

The findings mirror sentiments from major industry players such as Wendy’s and McDonald’s, both of whom reported difficulties, especially in attracting lower-income consumers. Wendy’s saw a 4.7% decrease in same restaurant sales in its third fiscal quarter ended on Sept. 28, which was attributed to declining traffic and pressures on lower-income diners.

Chris Kempczinski, chairman and chief executive officer at McDonald’s, said the QSR segment is facing a “bifurcated consumer base” as lower-income consumer traffic declined almost double digits in the company’s third quarter ended on Sept. 30. The decline marks a persistent trend for nearly two years, Kempczinski said.

“Right now you’re seeing across the country rents are high, food prices are high, childcare is high,” he said. “There’s significant inflation that the low-income consumer is having to absorb, and I think that’s affecting their outlook and their spending behavior.”

Looking at other markers of the foodservice segment, Bank of America Institute said overall restaurant spending growth fell to 0% year over year for September, and market researcher Circana found that spending for the 12 months ended in June 2025 rose $357.3 billion, a 3.7% increase over the same period last year.

“Economic pressures, such as inflation and a slowing job market, have led to consumer uncertainty and a general decline in sentiment,” Circana said. “This is causing consumers to be more selective with their dining-out dollars, often prioritizing essential purchases. However, this cautious spending behavior creates opportunities for operators that can deliver on specific consumer demands.”

Consumers cite rising costs as the leading reason for dining away from home less frequently, with 69% of diners who eat out less stating that it has become more expensive, according to YouGov. Among the same group, 58% also cited efforts to save money as a key reason for eating out less, along with increased costs of living (57%), cooking at home more (46%) and changing lifestyles (20%).

In addition to eating out less, consumers are shifting their habits to save money when they do choose to eat out. More than 50% of respondents said they have altered their dining preferences to cut down on expenses, with leading behaviors including choosing cheaper restaurants, using discounts and ordering fewer items. Restaurants offering buy one, get one offers, other discounts and loyalty program rewards have resonated the most with consumers seeking to reduce costs.

“Americans still enjoy dining out, but value has become the deciding factor shaping where and how they choose to eat,” said Nora Hao, senior sales director for YouGov America. “As costs continue to rise, consumers are becoming more selective — and restaurants that pair affordability with loyalty rewards, and smart digital engagement will come out ahead in 2025.”