TCE Pulse Report | May 2025 Edition

Calculated Consumption, Cautious Optimism, 
and the Pressure to Execute

This Pulse Report is dominated by a sense of economic squeeze: While costs rise, consumer confidence (and spending) falls, creating serious challenges for all parts of our industry.And yet, operators signal cautious optimism for the future, continuing to invest in their brand, infrastructure, and innovations, to keep pace with ever-more discerning consumers.

Among QSRs, we see brands tackling perceptions of unaffordability by strategic bundling and discounting, like Taco Bell’s Luxe Cravings Boxes or McDonald’s expanded Value Meal menu. For Fast Casual operators, affordable quality remains the winning proposition, and brands like Cava and Chipotle continue innovating Limited Time Offers for brand-worthy news. In the world of Casual Dining, Chili’s Triple Dipper remains the holy grail of value innovation. This is an example of approachable, experiential, operationally optimal pantry remixing, for guests seeking an affordable indulgence. Fine Casual brands are especially pinched between shrinking margins and decreasing consumer spending. Here, operators continue to amplify quality messaging while exploring alternative dayparts and channels to capture traffic while delivering value optionality.

Across all segments, off-premise remains crucial, leading to increased investment in technology for seamless experiences. Third-party delivery services continue to grow, while operators also explore direct channels and innovative solutions like voice-enabled ordering. Successful restaurants are deploying a comprehensive approach: Addressing guest needs today with value-centric innovations; while building for tomorrow with investments in infrastructure, operations, menu, and technology.