When diners skip the bar

The restaurant world never sits still—even as summer draws to a close: This week, headlines include adults turning to kids’ meals to save money in an inflated economy, Chili’s unexpected TikTok-fueled resurgence, looming allergen disclosure rules and shifting consumer dining habits. Plus, we’re tracking a drop in alcohol sales, AI’s potential role in food safety and the tug-of-war between grocery and restaurant traffic.

But first, football-themed food touches down on menus for fall.

Happier meals. Nearly 50% of adults are now ordering kids' meals to save money in a worsening economy.  

Keep it casual. Chili’s is saving casual dining restaurants thanks to its newfound TikTok virality, and the impact is spreading. 

Robots to the rescue. Could an AI breakthrough revolutionize food safety as well?

Nothing to sneeze at. A new California bill could require restaurants to disclose food allergens on menus.

Add to cart. Visits to grocery stores this year have outpaced visits to restaurants. 

Diners are drinking less, how it impacts your bottom line

Consumers are ordering less alcohol in restaurants, prompting operators like SPB Hospitality and Texas Roadhouse to bolster their non-alcoholic menus with mocktails and other options. Alcohol accounts for roughly 10–15% of sales for chains such as Texas Roadhouse, BJ’s and Applebee’s, making this shift financially notable. Beverage programs are evolving to include creative non-alcoholic offerings like dirty sodas and mocktails to meet changing guest preferences. 

Why it matters: Alcohol sales are a high-margin revenue driver—and a downturn here directly impacts your bottom line. The shift to non-alcoholic options signals an opportunity: innovating beverage programs can recapture lost sales while appealing to health-conscious or budget-aware guests. Expanding your menu with thoughtfully crafted mocktails or fun non-alcoholic alternatives not only offsets declining alcohol consumption but also keeps your offerings inclusive and competitive. (Nation’s Restaurant News)

A new bill in New York state could affect tipping rules 

New York Assembly member Angelo Santabarbara introduced bill A9008, allowing optional tip pooling in counter-service restaurants—sharing gratuities among all hourly staff, from cashiers to cooks and dishwashers. Owners must post notices and keep tip records for six years, managers are excluded. The change targets fairness by recognizing that meal delivery depends on more than just front-of-house workers.

Why it matters: For restaurant owners, this legislation opens the door to equitable tip sharing across service levels—boosting team morale and reducing front/back-of-house tensions. Even though adoption remains optional, operators should consider compliance logistics and communication strategies now in case the model gains popularity in counter-service venues. (The Sun)

$10 and under seems to be a sweet spot for pricing 

Is 10 the magic number for menus? Fast-food brands like McDonald’s and Wendy’s are deliberately pricing key menu items just under the $10 mark to preserve customer perceptions of value amid rising costs. By employing combo deals and strategic menu engineering, they aim to entice diners without sacrificing profitability—tactically balancing affordability and loyalty during inflationary pressures.

Why it matters: For your business, this reinforces the importance of psychological pricing tiers. Keeping core offerings below a defined dollar threshold—like $10—can sustain demand, even when costs rise. Smart bundling and value-driven messaging become essential tools to protect customer trust and traffic without eroding margins. (WebProNews)

18%

The amount of total restaurant sales that come from digital orders. (Nation’s Restaurant News)

Low consumer confidence is keeping restaurant traffic down

Tableside carts are trending at restaurants around the country

Chipotle will roll out drone deliveries in Dallas soon

”Radioactive” frozen shrimp have been recalled in nine states

White Castle announces plans for first restaurant in Texas

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