Remember the coffee shop Central Perk on Friends? Or the bar Cheers? Both these TV iconic locations were more than just places to eat and drink. They were where people regularly gathered, making and deepening human connections. This was the original purpose of restaurants, coffee shops, and bars, and they served that purpose for hundreds of years. And then COVID-19 disrupted not just the industry but consumer behaviors, as well.
In a thorough and fascinating article on the NRN (Nation’s Restaurant News) website, executive editor Alicia Kelso discussed the return of restaurants and coffee shops as places to gather with others or hang out alone.
Kelso writes that consumers “had little choice but to accelerate digital adoption to keep themselves informed, entertained, and distracted in an otherwise ominous environment. For its part, the restaurant industry shifted its business to off-premises channels.”
But restaurant operators want customers to come back. Kelso cited some stats that shocked me—Starbucks “now generates more than 70% of its sales through its mobile app and at the drive-thru.” To draw customers back into the coffee shop, Kelso says Starbucks is “revisiting the dining room…and reinvesting in its stores.
Other restaurants are also focusing on enhancing their dining experiences. Adding plugs and softer seating, upgrading the dishes and cups, updating color palettes, and modernizing design so that patrons want to “relax, work, and socialize.”
If you’re already in the restaurant business, this may seem like a lot of effort, and you don’t have the resources that national chains have. But this is what customers want.
According to the article, consumer insights researcher Lisa Miller says her surveys show that going out to eat is how most people would choose to overcome a bad day. Almost half of those surveyed say they’re willing to pay higher prices if they receive better service.
Further, nearly 50% said they’d pay more if it meant receiving better service. Most Gen Z consumers (52%) say “they want to dine out more to socialize with their friends.” According to Miller, many industry operators assume consumers don’t want to return to restaurants, but she says, “It’s not that they don’t want to come in, it’s that the experience in the dining room hasn’t been what they wanted. The experience hasn’t been worth it.”
Miller’s survey reveals that 30% of respondents “think restaurants no longer care about customers, while 34% said dining in is no longer worth the money spent.” She told NRN, “Restaurants have morphed into manufacturing facilities for off-premises orders, where the front counter is crowded with to-go orders ready to be picked up. But if you look at the brands that are succeeding the most right now, it’s the ones that have prioritized service.”
Restaurant owners seem to be up to the task. Kelso cites the National Restaurant Association’s State of the Industry 2025 report, showing that restaurant operators say attracting dine-in guests is a bigger priority than off-premises business.
Kelso writes, “It’s important for restaurants to understand what their consumers want. For many younger consumers, that is simply having a place to go.” Kelso ties that desire into a report that reveals that “about half of American adults report experiencing loneliness, and 70% of consumers ages 15-24 have less social interaction with their friends than two decades ago.”
Kelso notes that several restaurant executives believe the industry can be a “part of the solution to this [loneliness] epidemic.”
Follow-up: I want to reiterate what I wrote last week about being “mad as hell.” Since nothing has yet been done to rectify the situation, I am asking you to #StandWithSCORE.
SCORE is too valuable to be cut from the federal budget, so please contact your congressional representatives and senators. Tell them to stop talking about how “important small businesses are to our national economy” and do something about saving an organization that helps millions of small business owners every year.
Or just fill out this form (it takes less than 2 minutes), which will be sent to your congressional representative’s offices. And message Congress on social media. Tell them to save the people who save small businesses—for free. Include @scorementors in your post. And the hashtag #StandwithSCORE.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Getty Images via Unsplash+
