Restaurants are proving that necessity truly is the mother of invention (a saying commonly attributed to ancient Greek philosopher Plato) as they’re forced to adapt their game plans to survive in the face of continuing economic challenges and inflation. More than ever, consumers are making their dollars count and are consistently seeking more out of their dining experiences, notes Jonathan Weathington, CEO of Shuckin’ Shack, which has nearly 20 locations scattered throughout the country. “I don’t believe this is a change in behavior—this is why full-service restaurants exist,” he says. “It’s our goal to ‘be on the rotation’ of the average diner and blow them away with the experience … We’ve got to be seen, make the conversion, and retain the customer for more than one visit.”

The expectations of significant value and an excellent service experience in exchange for guests’ hard-earned money are much larger than they used to be, adds Dan Sweatt, field marketing manager at 85-unit Wings and Rings. “Full-service restaurants must up their game since every transaction is critical to generating repeat business.”

Bob Johnston, CEO of Melting Pot, highlights the pressure placed on unit-level economics across the industry. “We are greatly challenged with rising costs in virtually every area of our business,” Johnston says. To counterbalance these pressures, Melting Pot, like many brands, has had to increase prices at its 92 restaurants. However, the brand’s focus remains on delivering the “perfect night out,” which comes down to the overall experience.

Despite the price hikes, consumer satisfaction and social reviews indicate that guests still perceive Melting Pot as delivering value, he notes. “In the past and now, we continue to thrive in this environment because our guests often choose to celebrate something in their lives by enjoying a Melting Pot experience,” Johnston says. “Generally, even in tough times, people do not want to forgo celebrating. This benefits us more than casual dining or fast food, which cater more to physical appetites. The Melting Pot is about satisfying an emotional appetite for an experience involving being around people you care about.”

Melting Pot recently launched a “Down to Fondue” Happy Hour program, which offers half-price cheese and chocolate fondues, along with drink specials, as a way to attract cost-conscious diners without compromising on the brand’s iconic experience. “We believe there’s tremendous potential to grow new and incremental revenue with the launch of this program and daypart,” Johnston says.

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At FSC Franchise Company—the franchisor of concepts such as family sports pub Beef ‘O’ Brady’s and craft beer bar The Brass Tap—inflation has pushed menu prices up over 25 percent in the last three years, according to CEO Chris Elliott. This has led to a modest decline in traffic, around 2 percent. The company has reacted by making changes to enhance the customer experience while also looking into purchasing strategies, menu adjustments, and labor efficiencies to maintain margins.

“We have always had takeout, value meals, and happy hour deals as part of our strategy, but have worked to enhance the experience with AI technology and dedicated takeout spaces,” Elliot says. “We are leaning harder into value by expanding daily food specials to include liquor, beer, and wine offerings (in markets where allowed), offering attractive add-ons and kitchen technology upgrades for more efficiencies.”

Similarly, Sweatt underscores the importance of providing clear value to customers. As part of its 40th anniversary celebration, Wings and Rings introduced a sweepstakes program, offering substantial discounts and prizes to drive traffic for 40 days. The brand’s loyalty program has become a crucial tool for retaining customers by consistently offering savings and communicating value propositions. 

“Utilizing this program to tell our brand story and provide offers that drive traffic is essential for full-service restaurants, and these programs obviously become exceptionally more valuable with each additional signup,” Sweatt says. “We’ve seen a significant rise in our loyalty signup rate year over year, which has allowed us to educate our diners about LTOs, daily specials, and our weekday lunch specials.”

Following an influx of customers using its app, Wings and Rings has also made refinements to make the takeout experience as quick and convenient as possible by adding mobile wallet payments and quick reorder options. “We also make sure to call out our biggest value options in the app so customers know where they can save with us. We don’t hide value from our loyalty members—we celebrate it,” he adds.

Looking Ahead

Despite the ongoing challenges posed by rising costs, the restaurant industry is demonstrating resilience by leaning into its strengths—offering unique dining experiences, emphasizing value, and exploring innovative strategies. As consumer behaviors continue to evolve, restaurants that can adapt to these changes while maintaining their core values are likely to emerge stronger and more competitive in the long run.

“We believe in authenticity and serving a product that is excellent,” Weathington says. “As long as we continue to do that, we’ll not only be fine, but we’ll continue to grow in both customers and units.”

“I don’t think full-service dining will ever die in this country,” adds Sweatt. “As customers change their habits on a large scale, the opportunity to secure new customers and turn them into regulars is there. We need to communicate to diners that we offer an easy-to-use platform that makes ordering of all kinds easy and that we offer significant value for our top-of-the-industry food. Many are looking for a new regular spot as they flee other establishments that aren’t addressing their concerns. We have to be waiting with open arms.”