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REPORT: One-Third of Diners Switched Their Favorite Restaurants in the Past Year

  • Automatic
  • 15 April 2025
  • 3 minute read
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This article was written by Hospitality Technology. Click here to read the original article

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Tillster’s seventh annual customer sentiment survey reveals shifting consumer expectations around value, convenience and digital restaurant experiences.

Restaurant loyalty is in crisis.  There is an alarming trend emerging in the fast food and fast-casual restaurant market: diner loyalty to their favorite brands is eroding, according to the 2025 Phygital Index Report released today by Tillster, a leading global provider of unified commerce solutions for restaurants. Restaurants must act quickly to capture diner loyalty and business as economic uncertainty influences diner restaurant choices, motivations and ordering preferences.

Tillster commissioned an independent survey of 1,500 U.S.-based diners who recently ordered from a QSR, fast-food or fast-casual chain to better understand their ordering habits, expectations, experiences and preferences. The report found that the industry saw lots of transformation, as brands worked hard to win over increasingly selective diners with new limited time offers, value meals, upgraded loyalty programs and digital innovations — all in response to shifting economic pressures and rising consumer expectations.

In Search of a Better Experience

What do consumers want out of their dining experiences? Guests have spoken and value has become the new battleground for loyalty — but it’s about more than just price. Diners are looking for a better overall experience, from streamlined ordering to more inviting restaurant environments. In fact, 33% of diners said their favorite restaurant changed in the past 12 months, with “better food” (46%) and “better value” (40%) cited as the leading reasons.

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Other ways diners have changed how they interact with their favorite quick-serve and fast casual brands and why include:

  • Cost-conscious diners are rolling back their spending, not cutting it out. 45% of surveyed diners report they are visiting restaurants less often due to rising prices, with nearly half saying they’ve decreased their dining-out budgets in the past six months. At the same time, 21% say they’ve increased their budgets in 2025 – showing that while some are pulling back, others still see dining out as a worthwhile indulgence. But this optimism is fragile: if brands can’t prove value, even the most loyal diners may start closing their wallets.

    Related:  Beyond Discounts: How Brands Can Win Customer Loyalty in 2025

  • For the third year in a row, consumers want more kiosks. 61% of kiosk users say they want to see more kiosks in restaurants – up from 57% in 2024 and 36% in 2023. Kiosks offer a more tailored ordering journey with visual order confirmation and customization options at the fingertips. Diners are embracing kiosks not only for convenience – but to make their dining experience their own.
  • Consumers are increasingly choosing c-stores for quick bites. Even as QSRs continue to dominate the value conversation, 24% of surveyed diners say they’re visiting convenience and grocery stores more frequently than they did 12 months ago – a higher increase than those returning more often to QSR (18%) or fast-casual (16%) chains. With more pre-made meal options entering the mix, QSR brands must double down on experience and engagement to maintain their edge.
  • Diners are willing to embrace voice AI. Technology that once felt futuristic is quickly becoming standard. 60% of diners say they feel comfortable using voice AI at the drive-thru, with Gen Z even more enthusiastic at 67%. As brands lean into automation, the upside isn’t just convenience – it’s freeing up staff to focus on food quality and service, while providing diners with faster, more accurate orders. For restaurants, AI adoption is less about novelty and more about long-term competitive advantage.

“Diners today expect more than speed and discounts – they’re looking for a more valuable experience, from personalized touch points to high-quality food options,” said Perse Faily, CEO of Tillster. “This year’s Phygital Index Report finds that brands can’t count on diner loyalty anymore – it must be earned every single time they order from a restaurant. As the dynamics between diners and their restaurants-of-choice continue to shift, Tillster is committed to helping our customers weather the complex economic environment. We hope that the insights from the report will help guide restaurant and foodservice concepts to success in 2025 and beyond.”

To see the complete findings from Tillster’s 2025 Phygital Index Report, please visit here.

Please click here to access the full original article.

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