As recently as three years ago, on-premise dining trends were reflective of consumers who were still considerably cautious about dining amidst dozens of other customers. And while on-premise dining is picking up again, the drivers behind it look different from what they did pre-pandemic.
According to Joe Hannon, general manager, inventory & sales at Restaurant365, which just released its Midyear State of the Restaurant Industry report, guests are looking for an experience, and that’s pushing restaurants to double down on in-house services where they can control more of the experience and, frankly, the margins.
“Off-premise channels are still important, but with rising fees and delivery costs, many operators are refocusing their energy on what they can do in-house,” Hannon says. “What’s driving this shift is a mix of guest expectations and operational realities. People want connection, operators want consistency, and on-premise dining, when done right, delivers both.”
As Hannon explains, the pandemic reset expectations both for guests and operators. On-premise dining today looks very different from what it did just five years ago. Operators are being smarter and more intentional with labor, menu design, and table turns.
“Technology also is playing a bigger role, from QR code menus to integrated POS and inventory systems that help staff move faster and managers make better decisions in real time. At the same time, we’ve seen a clear shift in how restaurants define success,” Hannon says. “It’s no longer just about filling seats; it’s about margin protection and operational efficiency.”
Samantha Des Jardins, content marketing manager at Datassential, adds that according to Datassential’s 2025 Trends Report, “the distinction between dining segments, such as Quick Service Restaurants (QSRs), midscale, and casual dining, is diminishing as restaurants compete on value, innovation, and quality to cater to evolving consumer preferences.” This trend highlights the importance of affordability and worthwhile experiences in attracting on-premise customers.
“Casual dining is adapting to merge the convenience of QSRs with the quality of traditional restaurants, fostering community-based environments that emphasize authenticity, health, and contemporary dining experiences,” Des Jardin adds. “Consumers are increasingly indifferent to traditional service styles, with 43% stating they do not prioritize whether a restaurant is quick-service or midscale, signaling a shift toward prioritizing food quality, convenience, and overall experience.”
Consumers Want Meaningful Experiences
Priscilla Conyers, the franchise partner of one of the nation’s top-performing Eggs Up Grill locations in Riverview, Fla., says there’s definitely been a shift in how people approach dining out.
“Post-pandemic, folks are more selective. They’re asking themselves, ‘Is it worth it to go out when I can make something at home?’” Conyers says. “So, it’s not just about the food anymore; it’s about the experience. People are looking for more than a meal and they want connection, hospitality, and something that feels personal. At Eggs Up Grill Riverview, we’ve seen this first-hand. Guests want to feel seen and valued, and that’s what drives them back through the door.”
Izzy Kharasch, president of Hospitality Works, says while guests are going out more, they are trying to spend less. “One cocktail before dinner, not two; a glass of wine rather than a bottle of wine; and more sharing, including sharing one entrée and not having an individual one,” Kharasch says.
Kharasch is also seeing menus becoming smaller, with more appetizers and less entrees. As he explains, this is helping on-premise establishments keep a lower inventory, which in the long run will help them save money.
“Also, more restaurants have increased their technology, such as handheld POS, so that the servers can be much more efficient in the ordering and delivery of food and beverages,” Kharasch says. “The current trend of cocktails continuing to increase in price will begin to turn itself around. Already, a number of restaurants in bigger cities are beginning to roll back their cocktails pricing. Customers have gotten tired of paying $18 to $20 for a cocktail and are now searching out restaurants with more reasonable cocktail prices. The trend of trying to spend less and share more will continue for the rest of 2025.”
Bill Mitchell, CEO of HungerRush, has more than 30 years of executive leadership experience across the restaurant, hospitality, and enterprise software sectors, having served as president of global operations at Papa John’s, president of Dunkin’ Brands International, and CEO of Cicis Pizza.
“The top three on-premise trends I’m seeing are: rising guest expectations, tighter labor dynamics, and the strategic use of technology to close the gap,” Mitchell says.
First, as Mitchell explains, guests now expect a faster, more personalized experience, whether they order at a kiosk, from their phone, or at the counter. They want the system to recognize them, apply loyalty rewards automatically, and accept digital coupons without friction. Paying at the table should be simple and fast.
“Second, dine-in traffic hasn’t fully recovered to pre-pandemic numbers, but expectations have risen,” Mitchell says. “Guests want their on-premise experience to feel efficient and worthwhile. This shift is driving operators to use technology to reduce staff strain, improve order accuracy, and create more value during each visit.”
Third, Mitchell says rising operational costs are forcing restaurants to do more with less. The right tools help streamline workflows, improve service, and keep teams focused on what actually drives revenue.
“The biggest change in on-premise dining is the way restaurants are using technology to enhance the in-store experience,” Mitchell says. “It’s no longer about adding more tools. It’s about using the right tools to improve speed, accuracy, and guest engagement.”
Guests also expect to be recognized and rewarded in real time. As Mitchell explains, they want to reorder favorites, redeem texted offers, and pay without delays. In-store mobile ordering and tablets are helping teams meet those expectations by reducing wait times, preventing mistakes, and simplifying loyalty sign-ups.
“This evolution is also helping teams manage tighter labor environments,” Mitchell says. “When tech is doing the heavy lifting behind the scenes, staff can focus on hospitality and consistency during peak hours.”
The Future of On-Premise Dining
Conyers believes the restaurant industry is going to see a continued push toward hyper-local, community-driven dining experiences. “People want to support businesses that support them,” Conyers says. “So whether it’s sourcing local ingredients, giving back to nearby schools, or hosting events that celebrate our neighborhood, diners are paying attention to those details.”
She also sees technology playing a bigger role – not replacing the personal touch, rather enhancing it and streamlining operations so her team can focus more on genuine hospitality. “It’s all about that balance between efficiency and warmth,” Conyers says.
Looking ahead, the team at Restaurant365 expects two things to define the next wave of on-premise dining: personalization and precision. On the personalization side, guests will continue to seek out restaurants that feel tailored to them, whether that's through loyalty programs, curated menu options, or localized experiences.
“For operators, that means using guest and sales data more strategically to inform everything from LTOs to staffing,” Hannon says. “On the precision side, it’s all about tightening the screws operationally. Every decision, from what to prep to who to schedule and when to reorder, needs to be rooted in data. That’s especially critical as food and labor costs remain unpredictable. Operators who rely on gut instinct alone are going to struggle. Operators who build a culture of data-driven decision-making will win.”
Mitchell believes that on-premise dining is headed toward full integration. One system that connects ordering, loyalty, feedback, and payment into a single, seamless guest experience.
“We’re already seeing more restaurants adopt digital ordering within the store to reduce wait times and give guests more control,” Mitchell says. “Loyalty programs are becoming smarter by tying directly to order history, not just points. Feedback tools are improving from just collection to allowing operators to act on issues and respond immediately. The restaurants that will lead in the next few years are the ones treating technology as a core part of the guest experience. When tools are connected and easy to use, service improves, teams stay efficient, and loyalty grows naturally.”
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