As food manufacturers and restaurant operators brace for continued economic uncertainty, a familiar consumer behavior is once again emerging—one that defies the logic of budget constraints. Despite reports of “belt-tightening,” we continue to see diners flock to immersive, premium, and entertainment-driven experiences. But is this a new trend—or simply the latest expression of a long-standing economic truth?
I’ve spent decades studying consumer motivations in the foodservice industry. What’s become clear is that when consumers perceive value—whether through product quality, emotional connection, or the uniqueness of the experience—they are more than willing to part with their money. That’s not an economic anomaly. It’s behavioral economics 101.
Nobel Prize-winning economist Richard Thaler coined the term mental accounting to describe how consumers psychologically categorize and evaluate their spending. Put simply, people don’t treat all dollars equally. A $100 grocery bill might feel excessive, but the same person will happily drop $100 on a birthday dinner or a night out at a Korean BBQ spot where they cook their own meal.
In the foodservice world, this manifests as what we call “justified indulgence.” Consumers rationalize spending more—especially in leaner times—when the experience feels unique, social, and emotionally satisfying. Concepts like Puttshack (mini golf plus dinner), Le Petit Chef (animated table projections with meals), and even long-standing brands like Medieval Times illustrate this behavior. Their success isn’t about food alone—it’s about giving people a reason to spend.
This is not a short-term trend—it’s a durable behavior that’s reemerged time and again. From Benihana’s teppanyaki theatrics in the 1970s to today’s rotating sushi bars and chef’s tables, consumers have always paid more when they feel they’re getting something that transcends the transactional.
The lesson for food manufacturers and operators is clear: innovation isn’t just about flavor or packaging. It’s about experience. Whether you’re selling frozen appetizers or developing a menu for a chain concept, consider how your product contributes to something memorable. Can it enhance the social aspect of a meal? Deliver an unexpected twist? Support a brand narrative that feels premium or exclusive?
Consumers don’t stop spending during downturns—they become more selective. And what they’re selecting is meaning. Thaler’s work reminds us that even when wallets tighten, spending continues—just with a sharper eye toward emotional ROI.
At Foodservice IP, we help clients identify not just what people eat, but why they eat it—connecting insights like these to real growth strategies. Because in foodservice, value isn’t just about price. It’s about purpose, perception, and the moments that make dining out feel worth every penny.
Tim Powell is a Principal with Foodservice IP, a professional services firm aimed at delivering ideas for managers to guide informed business decisions.
To learn more about FSIP’s Management Consulting Practice, click here.
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