As the Autumn Budget draws near, the UK hospitality sector continues to face rising financial pressures that threaten long-term stability and influence consumer behaviour. A recent survey of 400 UK consumers by Revenue Management Solutions (RMS) reveals that one in four people expect to dine out more in the coming months, with Millennials and Gen Z driving this positive shift. For restaurant operators, the findings present a clear opportunity to engage younger, frequent diners through targeted menus, tailored promotions, and refreshed loyalty strategies.
Despite the encouraging signs from younger generations, the survey also highlights significant caution among consumers overall. More than one third reported reducing their visits to pubs, fast-casual outlets and full-service restaurants in the past month alone, with fast-casual venues seeing the biggest decline at 41%. Against the backdrop of tight household budgets, operators must strengthen value-focused messaging by introducing price-conscious menu bundles or curated value offers. When guests feel their experience and food quality justify the spend, restaurants are better positioned to retain footfall even as financial pressures increase.
The research shows that price sensitivity continues to rise across both grocery and restaurant spending. In Q3 2025, 81% of consumers said they were paying more for their weekly food shop, an increase from 66% in Q3 2024. Similarly, two in three diners (67%) believe restaurant prices have gone up. According to The Standard, take-home grocery price inflation reached 5.2% in mid-July, the highest level since early 2024. With inflation shaping perceptions of value, operators who balance affordability with a clear value proposition — whether through atmosphere, convenience, or social experience — will be better placed to win market share from both at-home dining and competitors reluctant to adapt.
The survey also reveals a shift towards ready meals, with almost a third of respondents (32%) purchasing more of them. Value and convenience are major motivations, with 28% choosing ready meals for “value for money” and 34% citing “convenience”. As food-to-go becomes more appealing due to its simplicity and immediacy, restaurants can recapture this demand by offering low-cost, fast and convenient dining experiences. If operators present options that feel like a strong deal, they can successfully compete against grocery retailers and convenience chains.
Looking ahead, the data suggests diners are selectively adjusting their habits. While 21% plan to visit QSR restaurants more often, 38% expect to reduce their fast-casual visits and 40% forecast fewer trips to full-service restaurants. Nevertheless, almost a quarter (24%) intend to increase their dine-in visits. This signals a shift in the competitive landscape: QSR formats are gaining momentum while higher-cost restaurant categories face pressure. Brands that combine smart pricing strategies with strong guest experiences will be well placed to protect margins and draw in diners.
Spending patterns compared with 2024 show an even divide between those cutting back (34%) and those indulging more (33%). The proportion of diners spending more in restaurants has risen by 14% since Q1 2024. Of those spending more, 63% say they are ordering the same items but paying higher prices. Among those spending less, 49% are deliberately ordering fewer items to control costs, while over 40% are opting for more affordable dining alternatives.
Unsurprisingly, Millennials and Gen Z remain the most optimistic and active dining groups. In the QSR category alone, 40% of Millennials and 37% of Gen Z expect to increase their visits. They also show stronger intentions to dine in restaurants, with 38% of Gen Z and 33% of Millennials planning more visits. Remarkably, 95% of Millennials dine out weekly, identifying them as an exceptionally valuable consumer segment. Both Millennials and Gen Z also lead in weekly take-out deliveries, with rates of 82% respectively.
Restaurants have a significant opportunity to harness the strong dine-in and take-out behaviours of Millennials and Gen Z by tailoring menus, promotions and digital offerings to their preferences. This includes optimising mobile-friendly ordering, developing value-focused promotions and implementing loyalty schemes that reward repeat custom. Creating memorable and engaging dining experiences will also be key. By embracing digital engagement, offering adaptable menu options and regularly introducing new dishes or limited-time specials, operators can attract, maintain and ultimately convert younger diners into committed long-term customers.