The secret to creating repeat customers

True hospitality will never go out of style. In this week’s edition, we look at how operators can boost visibility in AI search, adapt as Gen Z cuts restaurant spending and why hospitality, not just good service, remains the ultimate differentiator.

Plus, McDonald’s discount strategy faces scrutiny, California passes major industry legislation and a beloved fast-casual chain bets on a ghost-kitchen future.

But first, here are 25 restaurant trends that defined the last 25 years.

Happier meal. Did McDonald’s price cuts work? It’s complicated.

Fitting the bill. Governor Gavin Newsom signs landmark legislation to help restaurants in California.

Eighty-sixed. Is this the end of the era of soul food in D.C.?

Hell’s kitchen. Gordon Ramsay is opening a gastropub in Disneyland.

Closing shop. California chain Lemonade transitions to ghost-kitchen only in the Bay Area.

How your restaurant can improve visibility in AI search

A new study shows that restaurants must optimize their digital presence to perform well in AI-powered search. Online listings and reviews strongly influence how chatbots and generative AI tools rank restaurants. Structured, accurate business info and brand mentions across platforms improve visibility in both traditional and AI search results.

Why it matters: For restaurant owners, AI search is becoming a gatekeeper of discovery. If your establishment doesn’t rank in AI responses, you risk being invisible to diners using ChatGPT, voice assistants or other AI tools. Investing in robust listings, review strategy and structured web content is now critical for maintaining visibility and driving traffic. (Restaurant Business Online)

Gen Z is cutting their restaurant spending first

Younger consumers, particularly Gen Z (ages 13–28), are cutting back on discretionary spending, and restaurants are among the first to feel it. Teen spending is down 6% YoY. Fast-casual brands heavily patronized by younger diners are especially vulnerable.

Why it matters: Younger diners often drive frequency and future loyalty; their pullback signals revenue risk. Brands that rely heavily on Gen Z or fast-casual traffic must adapt by diversifying guest demographics, emphasizing value, tweaking marketing messaging or innovating formats. This isn’t a niche blip; it’s a structural pressure on growth and positioning. (Nation’s Restaurant News)

Good service won’t save your restaurant, hospitality will

Delivery apps and mobile ordering have changed how guests interact with restaurants. But while speed and accuracy matter, they aren’t enough to drive repeat business. Hospitality is what makes people remember you and come back. If your focus is only on the transaction, you’re missing the bigger opportunity.

Why it matters: Restaurants can’t rely on tech alone to stand out. Hospitality is your competitive edge. It’s not about adding more steps, it’s about being more intentional. When your staff greets a regular by name, notices a celebration or thanks a guest for waiting, it creates connection. That’s what turns a one-time visit into long-term loyalty. (QSR Magazine)

45%

The percentage of restaurant owners planning to add discounts during specific times. (Restaurant Dive)

NYC’s Via Carota duo to take over the restaurants at the Met

Bar Louie restaurant chain acquired by owner of Burger King

How Square’s latest updates will help restaurants

Minimalist restaurant decor is dead, enter the "nostalgic tavern"

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