Restaurant operators should focus on value, convenience, and experience to deal with a perception shift where, for the first time in four quarters, more consumers believe restaurant prices are higher than grocery ones, according to Revenue Management Solutions' Q1 2026 Consumer Insights Report. “Ultimately, respondents are not feeling more pain at restaurants,” said Richard Delvallée, Revenue Management Solutions Senior Vice President, Consulting Services. “They are feeling less pain at the grocery store.” Seventy-two percent believe restaurant prices are higher than the grocery checkout. Since January 2025, restaurant price perception remained steady while grocery price perception dropped 14 ppt, from 82 percent believing prices were higher than the previous month to just 68 percent. Consumers perceive restaurant prices as higher for a reason, he added. According to February 2026 data from the Bureau of Labor Statistics and USDA Economic Research Service, grocery inflation was up 2.4 percent YOY, while restaurant inflation was 3.9 percent. “Commodity prices for staples like eggs and produce have moderated from recent peaks. At the same time, grocers have aggressively leaned into private-label, loyalty pricing and promotional events to recapture value-oriented shoppers who traded down during the inflationary surge.” A Warning for Restaurant Operators The shift in perception should function as a warning, not a verdict for restaurant operators, Delvallée said. Despite price pressures, one in four respondents are still spending more at restaurants, though most say it's because prices are higher, not because they're visiting more often. At the same time, one in four are going…
