Consumer Dining Cutbacks Hit 12-Month High

The share of consumers that said they cut back on dining out hit the highest rate in more than a year, though operators largely maintained higher expectations for traffic and sales, according to Datassential’s July 2026 Table Stakes Tracker report.

Nearly half of consumers, 49%, said they cut back on restaurant meals in the past month, up 6 points from May. Looking ahead, 48% said they expect to dine out less often or stop completely, while just 13% expect to increase their visits. 

To save money while eating out, 28% of diners said they ordered cheaper menu items than usual in the past month, while 28% chose more affordable venues, both up 2 points month over month.

That sentiment comes despite some signs of easing financial pressure across most tracked issues. Inflation and the rising cost of living remained consumers’ top concern at 68%, though that was down 3 points from May. 

But at the same time, consumers’ economic expectations were subdued: just 7% said they are getting ahead financially, while 18% said they are falling behind. Looking to next month, 26% expect their financial situation to worsen, compared with 17% expecting improvement.

Despite that, most restaurant operators surveyed expressed continued confidence in traffic and sales growth. About 74% of operators described the previous month as profitable or very profitable. Looking ahead, 51% expect higher traffic and 51% expect higher sales in the coming month, among the strongest readings of the past year.

Food costs remained operators’ top operational challenge, at 77%, followed by labor costs at 56%. The share of operators who said customers reduced how often they visit rose 3 percentage points to 26%. Lowering monthly food costs remained the most pressing business priority but fell to 42% from 53%, while the share of operators that consider reducing business expenses a top priority dropped 5 points.  

Instead, more operators are focused on improving labor and staffing, up 3 points to 31%, and growing revenue, up 3 points to 23%. To drive profitability, 33% of operators launched new menu items or LTOs in the past month, 26% raised menu prices, and 25% focused on value.