Worth it: The dining and travel experiences that hold value against spending cutbacks

Restaurant dynamics at an inflection point for operators, workers, and consumers

Restaurants and hospitality companies face greater scrutiny from consumers over whether they want to spend their money. More than 4 in 10 consumers say they feel significant financial anxiety.

While a third of consumers say they are reducing restaurant spending due to financial constraints, nearly 70% report cutting back for other reasons. While travelers are also cutting back on the frequency of trips, they continue to value quality and comfort when they do spend, fueling strong performance in the luxury segment.

This bifurcation underscores a broader trend: consumers are prioritizing experiences over goods, with a clear preference for premium stays and memorable meals, even as overall travel and dining volumes soften.

In partnership with Prosper, we conducted operator, worker, and consumer surveys to dive into the key threats and opportunities within the space in the age of the experiential consumer.

• 42% of operators say volatile consumer demand is a top obstacle to business-model change
• 52% of workers worry about tech innovation causing a loss of human interaction for consumers
• 55% of consumers are cutting back on discretionary spending due to rising financial pressures
• Reducing the frequency of dining out is the top strategy for cost-conscious consumers
• 57% of consumers say restaurants could attract their business by improving food quality

To read the full report, click here.