American dining habits are changing

As Americans are slowing down for the holidays, the restaurant industry is just revving up.

This week, we’re looking at changing dining behavior, from the rise of solo diners and early meals to persistent cancellations that complicate scheduling. At the same time, tariff rollbacks promise incremental relief on food costs, while AI tools are reshaping how operators manage labor and demand. Together, these stories reveal an industry recalibrating around efficiency, flexibility and data, forcing restaurant owners to rethink everything from staffing models to menu pricing to stay competitive.

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Smaller tabs, solo tables: Dining is quietly changing in America

According to the latest Toast Report, solo-diner reservations jumped 22% in Q3 2025—the fastest-growing segment—while off-peak dining (breakfast, early dinner) and mid-week bookings surged. At the same time, overall seated reservations rose 8%, though cancellations increased by 7%. 

Why it matters: For restaurant owners, these patterns signal a seismic shift in dining behavior. Solo guests, early meals and mid-week traffic offer new opportunities to fill seats and smooth demand spikes. But rising cancellations highlight the need for stricter booking protocols, flexible seating and adaptive scheduling to maintain profitability and minimize no-show risk. (Food & Wine)

How tariff rollbacks are affecting restaurant costs 

A recent report outlines how the latest tariff rollbacks on items like coffee, cocoa, beef and tomatoes could ease cost pressures for many restaurants—though relief may take months to materialize. Country-specific tariffs (e.g., for Brazil or India) remain, and some supply-chain costs, alcohol and equipment aren’t affected.

Why it matters: For operators, even modest tariff rollbacks offer a potential reprieve from spiraling ingredient costs and a chance to stabilize margins or avoid further menu hikes. However, lingering tariffs and delayed cost-pass-through mean it’s no silver bullet. Now could be a good time to renegotiate food costs, revisit menu pricing or revisit sourcing strategies. (Modern Restaurant Management)

How AI is reshaping the restaurant labor model

AI now enables restaurants to create ultra-precise labor schedules and optimize late-night shifts, using data to forecast demand and build staff coverage that matches traffic. Chains like Taco Bell and Jack in the Box are already using AI to tailor menus and staffing for maximum profitability.

Why it matters: For restaurant owners, AI offers a tangible path out of reactive labor and margin-crunch cycles. By forecasting demand and recommending optimal staffing, AI can reduce labor waste and improve service consistency. Early adopters could see healthier cost control, better employee utilization and sharper guest experiences, making AI a strategic asset rather than a tech novelty. (Nation’s Restaurant News)

2.9

The percentage that eating and drinking sales rose from September 2024 to September 2025.

(National Restaurant Association)

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The Prep is written by Kelly Dobkin and edited by Lesley McKenzie.