Third spaces are thriving

The definition of “restaurant” is evolving daily—and it’s not just about what’s on the plate. This week, we’re watching how full-service brands are redefining value with experience-first strategies, and why 2025’s hottest openings aren’t traditional eateries, but hybrid third spaces that blend café, bar and community hub. 

For operators, it’s a call to think beyond pricing and menus, and toward vibe, flexibility and connection. The future of dining isn’t just service—it’s space, story and shared energy.

But first, a brand-new era has arrived at Emeril’s New Orleans, with a familiar name.

Counter space. Building a brand that feels 100 years old at Phil Rosenthal and Nancy Silverton’s new diner. 

Bot to go. Sweetgreen opens its first drive-thru location with automated makeline. 

Price break. According to a recent survey, restaurant menu prices are finally leveling off.

Turtle time. An iconic SF restaurant roared back to life this year, now it’s expanding.

Bearista fail. How a merch fiasco became a brand win for Starbucks.

At full-service restaurants, the definition of 'value' goes beyond just price 

Full‑service casual‑dining chains are redefining “value” by shifting from just low price to a holistic guest experience—focused on ambiance, staffing, generous portions and menu innovation. Brands like Chili’s, Applebee’s and Texas Roadhouse are gaining market share by investing in operations and experience rather than simply discounting. 

Why it matters: For B2B stakeholders, this signals a strategic pivot: value propositions must encompass atmosphere, service and perception—not price alone. Operators who invest in operational quality, training and experience design are trending upward even during inflationary times. Brands that prioritize comprehensive value can outperform peers and capture increasingly selective consumers. (Nation’s Restaurant News)

Third spaces are heating up as a place for guests to “just vibe”

 Post-pandemic, so many guests are looking to reconnect in spaces outside of the home. As a byproduct, the standout new dining spots of 2025 aren’t traditional restaurants but “third‑places”—venues that blend cafe, bar and eatery behind one roof. These hybrid spaces adapt fluidly throughout the day, offering everything from coffee and pastries to cocktails and a full dinner for a flexible, lifestyle‑driven guest experience.

Why it matters: For operators and investors, this shift signals that versatility and community‑momentum are key value drivers—not just the food. By operating across multiple service modes (day‑to‑night, café to bar to restaurant), businesses can broaden appeal, drive off‑peak traffic and embed themselves into neighborhood culture, creating more sustainable and differentiated business models. (Eater)

Trump cuts tariffs on food staples like beef, coffee and tropical fruit

Donald Trump has rolled back tariffs on agricultural imports such as beef, coffee, bananas and tomatoes as U.S. food prices remain elevated. The move seeks to ease pressures from inflation, following complaints from consumers and businesses. Import duties will still apply to some products, underscoring the complexity of relief efforts.

Why it matters: For food service operators and suppliers, this policy shift signals both relief and caution. Lower import duties may reduce ingredient costs and support profit margins, yet the legacy of high tariffs means elevated base costs may persist. Strategic sourcing, cost‑control and supplier agility remain critical in a volatile input‑cost environment. (Restaurant Business)

90

The percentage of Gen Z diners who claim they love communal tables (Business Insider)

A fried chicken vending machine is spreading throughout SF bars

Pura Vida Miami gets growth-driven private equity investor

A primer on the “no tax on tip” rule that’s coming to restaurants

Restaurant chains are thriving better outside of the U.S.

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