What's on the menu?

It's a question both restaurant operators and food retailers want an answer to, yet over the past few years the answer has changed dramatically. Consumers are trying to eat healthier, yet at the same time are trying to get the most bang for their buck. Yet while they are a bit more cost-conscious than before, they still like to indulge on occasion. 

To try to answer this question, I sat virtually with Renee Wege, Trendologist & Publications Manager at Datassential to discuss some of the key findings addressed in its recently-released Midyear Trends Report..

We discussed key consumer trends in the post-pandemic food and dining landscape, highlighting shifts toward health-conscious choices, the growing non-alcoholic beverage market, and the impact of inflation on dining behaviors.

We wrap up with a discussion on what retailers, foodservice operators and brands can expect to see from consumers in the coming months. Below is an edited version of some key points from the discussion. To view the full interview, please click here or watch the video below!

Pandemic recovery

ECRM: Have we recovered from the pandemic in terms of dining out?

Wege: The short answer is, not exactly, but we're getting there. A lot of the current numbers suggest that spending is back, but much of that is due to inflation. Dining out, groceries—everything's more expensive. So while we’re seeing pre-COVID levels of spending, it's important to note that rising costs are a major factor.

That said, we expect inflation to stabilize in 2024, and we should see modest growth in the industry. Consumer behaviors have shifted, though. With the pandemic, people became more accustomed to cooking at home. In fact, two in five consumers now prefer eating at home more often than getting food from restaurants, which marks a significant change.

Healthy eating

ECRM: People learned to cook at home during the pandemic and may have gotten better at it, making it easier to dine in and eat healthier. Has the focus on health and wellness changed people's dining choices?

Wege: Absolutely. Initially, there was a lot of focus on boosting immunity—think gallons of orange juice and high doses of vitamin C. But now the focus has expanded to include long-term health, both physical and mental. We’re seeing a huge shift toward healthier eating habits, with over 60% of consumers reporting that their physical health is more important to them now than it was two years ago. Mental and emotional health have also become big priorities, especially among younger generations.

ECRM: I’ve noticed that people, myself included, are more focused on ingredients. What foods are consumers considering to be healthy these days?

Wege: There’s definitely been a shift toward simple, whole foods like fruits and vegetables. People are much more conscious of what they're putting into their bodies, especially after the pandemic. Easy-to-make, nutritious foods are very popular, which supports home cooking. When we asked consumers which cuisines they considered the healthiest, Mediterranean topped the list, followed by Japanese and Thai. These diets are typically rich in whole foods, like beans, vegetables, and lean proteins, which aligns with the rising interest in longevity and better overall health.

ECRM: What about specific diets? Are there any that are particularly popular?

Wege: Most consumers are still omnivores—56% eat both meat and vegetables. But while there’s been a lot of buzz around diets like keto, plant-based, and vegan, not as many people practice them as you might think. The most common dietary practices are low-sodium (26%) and low-sugar diets, which are often medically necessary. Veganism and vegetarianism are still fairly low in numbers, but the flexitarian diet—limiting meat without fully cutting it out—seems to be gaining traction.

ECRM: One area impacted by the wellness trend is non-alcoholic adult beverages. We just had an ECRM  session on adult beverages, and the non-alcoholic segment is growing fast. What are you seeing there?

Wege: The non-alcoholic beverage market has exploded. In the past, when you heard "non-alcoholic beverage," you might think of coffee, tea, or juice, but now it's more about providing a healthy alternative to alcohol. Interestingly, 38% of people don’t drink alcohol at all, but the trend isn’t just about complete abstinence. Many people are choosing non-alcoholic options for health reasons or simply to cut back. We’re seeing non-alcoholic beers, wines, and spirits that mimic the taste and social experience of alcohol, without the negative effects. Sober curiosity is driving the growth, and even bars are catering to this demand with non-alcoholic menus.

Impact of rising costs

ECRM: How have rising costs and inflation impacted consumers, both in their shopping habits and dining choices?

Wege: Inflation and rising costs are top concerns for consumers—72% say it’s their biggest worry, even more than healthcare or climate change. Restaurant meals are often the first to be cut when people tighten their budgets, but we’re not seeing a complete halt to dining out. Consumers are making more strategic choices, like opting for less expensive dishes or visiting budget-friendly restaurants. People are still going out, but they want more value for their money, and they’re expecting better quality and flavors in return.

ECRM: I’ve noticed the same thing. I’m much more intentional about dining out now. If I do, I make it more of an experience with close friends rather than just grabbing food casually. It’s definitely changed how I approach dining out. Are you seeing similar behavior in the data?

Wege: Yes, and  "intentional" is a great word for it. Consumers are being more selective and thoughtful about where and when they dine out. With inflation and rising costs, they’re focusing on getting more for their money, whether it’s through better food or a more meaningful dining experience. Even though we’re seeing some relief from inflation, these behaviors are likely to stick around for a while. People want to make sure their money goes further, both in terms of taste and experience.

ECRM: With supply chain issues and rising costs, how are restaurants and retailers adapting?

Wege: It feels like we’re tired of saying "pandemic, shortages, supply chain," but there’s a silver lining. Innovation is at the forefront. Consumers and restaurants alike are becoming more innovative, finding creative ways to work around high costs. For example, restaurants are substituting ingredients or looking for local suppliers. We’re seeing people get scrappy, which is kind of exciting.

ECRM: I agree. Having already dealt with the supply chain issues from the pandemic, they’ve learned a lot. They’ve gotten better at finding alternative suppliers, sometimes closer to them or to key ports. Many retailers have turned to platforms like RangeMe to discover new suppliers. So, hopefully, the impact won’t be as severe as before. On the consumer side, what food trends are we seeing at restaurants and retail these days?

Wege: Nostalgia is huge right now. In tough times, people crave comfort, so we’re seeing a lot of throwback flavors and collaborations that bring a nostalgic element. Global flavors are also booming—things like ube, Asian salted egg yolk, and chicken wings, which are making a strong comeback. 

What’s next 

ECRM: Looking ahead, what can we expect over the next year in the food industry?

Wege: It’s easy to be negative, especially with rising costs making restaurants feel like a luxury. But I’m optimistic. Consumers will continue to treat themselves, balancing health with indulgence. We’ll see operators focusing on value—not just in terms of price, but in offering great experiences. Fast-casual dining is also expected to grow, as convenience remains top of mind for consumers.

Editor's note: You'll find the latest innovations for food retail and foodservice at ECRM's category-specific Food & Beverage Sessions and Foodservice Sessions!