New restaurant data: Why best practices are failing “the uncommitted majority”

Every day, restaurant operators like you make considerable investments to impress customers and keep them coming back. Whether it’s new menu innovations or loyalty program upgrades, these strategies are worthy, smart ideas aimed at giving the customer what they’re asking for.

They’re also not working like they should. 

Most consumers — 86%, in fact — tell us plainly that loyalty rewards are important to them. Furthermore, roughly two in three diners say they would change where they go for the right ongoing rewards or membership offer. This is why every brand in the industry has a program. Loyalty is table stakes.

So consumers say they want rewards, and that the right offer would influence their behavior. The problem is that as loyalty program membership increases, engagement isn’t keeping up. Consumers are joining programs, but they’re not getting the kinds of offers that build habits.

This report explores why.

Click here to get your copy — or read on to get a preview of the content.

What is uncommitted behavior, and what’s fueling it?

Uncommitted customers are those making less than one trip every two months to a given restaurant, on average. They are not rare; they are commonplace, rational, and have always been around. You might call them infrequent, occasional, or lapsed customers.

In the restaurant industry, 71% of customers are uncommitted. And those customers are responsible for a roughly equivalent share of sales — they make up 70% of revenue at the average business.

Uncommitted behavior is fueled by an increase in value-seeking. Since 2020, restaurant prices are up by 37%, according to the Federal Reserve of St. Louis. Cost increases on the business side are pushing operators to change their menu prices, but consumers have been pushing back on cost-passing by changing their behavior.

In this challenging economic environment, we notice two kinds of uncommitted customers. There are the ones who are trading down in the restaurant category, picking a different option than they usually do in order to stretch their budget. Then there’s also the customer who’s trading out, skipping the occasion entirely.

Addressing the uncommitment problem starts with better understanding.

What you’ll find in this report

1. How high gas prices affect restaurant sales: Dining out is considered by many to be a discretionary expense. When consumers feel stretched by high gas prices, they often change their dining habits. We quantified the relationship between gas prices and restaurant performance.

2. Why current operator strategies aren’t landing: Loyalty programming is meant to be a differentiator for brands. But nearly every restaurant has a program these days, making them table stakes. Amid intense saturation, programs are driving less engagement, even as membership increases.

3. The key to winning more trips: The path to sustainable growth lies in turning first-time visitors into repeat customers. That’s not something you solve in one fell swoop — it’s about showing up repeatedly, winning the next trip over and over. We explore how building habits with customers leads to real business growth and show you the impact of that behavior change.

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