Restaurant Traffic Shifts as Menu Prices Hit
Industry reports reveal a split in customer traffic, with younger generations driving takeout growth while delivery plateaus.
Restaurant traffic remains soft, but new data reveals a clear generational divide in dining habits. According to a Q2 2026 consumer survey by RMS, Gen Z and Millennials are the only generations increasing their restaurant visits and spending, while Boomers and Gen X are pulling back.
Hybrid workers are a particularly strong segment for restaurants. The survey found 37 percent of them plan to increase their visits, a figure that is up year-over-year. These workers are also nearly twice as likely as full-time remote workers to use a drive-thru three or more times per week.
Shifting Consumer Habits
Takeout is growing, especially among the big-spending younger generations. Delivery, however, has slipped back to year-ago levels. Only 49 percent of respondents reported at least one weekly delivery order, compared to 77 percent for takeout and 80 percent for dine-in. The high cost of delivery is a likely factor. A $10.29 quick-service restaurant combo ordered through an app like DoorDash or Uber Eats can carry a roughly 30 percent in-app markup plus fees and a tip, pushing the total cost to nearly $27.
Grocery stores are emerging as a quiet competitor. More diners now report buying meals from grocery stores more often than less, with Gen Z leading that shift.
Menu Price Monitor for July
Toast's July Menu Price Monitor shows several menu items hitting record highs. The data provides a granular view of how inflation is impacting restaurant menus.
| Item | Median Price (July 2026) | Monthly Change | Annual Change (vs. July 2025) |
|---|---|---|---|
| Hot Dog | $7.74 | +1.0% | +3.4% |
| Drip Coffee | $3.77 | +0.5% | +7.4% |
| Omelette | $15.00 | 0.0% | +1.8% |
| Cold Brew | $5.62 | 0.0% | +3.5% |
| Burger | $14.72 | +0.1% | +2.3% |
| Chicken Wings | $13.86 | -0.4% | +1.1% |
| Burrito | $13.67 | +0.7% | +2.2% |
| Beer | $6.61 | +0.2% | +2.5% |
Hot dogs reached their highest price since tracking began. Drip coffee also hit an all-time high. Chicken wings were the sole monitored item to see a price decrease in July. Burritos posted their largest monthly price jump in over a year.
The Changing Restaurant Resale Market
The restaurant resale market contracted in transaction volume during the first half of 2026. Data from BizBuySell shows restaurant sales fell year-over-year in the first and second quarters. The national median sale price dropped to $205,000.
Despite this, the market is not paying less for restaurants overall. The average cash flow multiple paid climbed, and sold-to-asking-price ratios reached 90.3 percent nationally. The firm's analysis suggests the market is buying smaller restaurants and rewarding sellers who price accurately.
We Sell Restaurants identified forces reshaping the market. Elevated borrowing costs are pushing buyers toward lower purchase prices and established franchise brands. Construction costs make buying existing space more attractive than building new. A "Silver Tsunami" of retiring Baby Boomer owners is fueling sales.
Franchise resales are surging. Their share of the firm's closings more than doubled from 2025 levels. Buyer intent for turnkey, equipped restaurants grew from January to June. Migration into the Southeast continues, with an eleven-state "Boom Belt" generating most of the firm's first-half closings.
Operator Outlook and Challenges
Toast's 2026 Voice of the Restaurant Industry Survey reveals an industry focused on durability. Ninety-one percent of operators rate their business health as good or excellent, unchanged from the prior year.
Inflation is the top challenge, cited by 27 percent of operators, followed by hiring at 22 percent. Profitability remains the primary goal for 37 percent of operators. They are pursuing it by generating new revenue streams and driving guest demand rather than cutting services.
If costs rise, many operators plan to raise menu prices. To manage labor challenges, 51 percent plan to increase staff efficiency and service speed. AI adoption is growing, with most operators comfortable using it and planning to use it more in the future.
The Impact of Workplace Meals
A separate report from DoorDash for Business indicates meal benefits are becoming a bigger part of return-to-office strategies. Among hybrid companies focused on increasing office attendance, 93 percent say meal benefits help drive employees back. Many companies compare meal benefits with other offerings like commuter benefits and wellness perks.
