New SmartSense Report Reveals What Restaurants Must Do to Retain Customers as Dining Spend Declines
As 59% of consumers report that their financial situation has worsened over the last 12 months, economic pressure is reshaping dining and takeout habits and consumers are growing more selective and less forgiving about their fast casual experiences.
SmartSense by Digi, part of Digi International (NASDAQ:DGII, www.digi.com)) today released findings from its Counter Intelligence Report: State of Fast Casual in 2026, based on a survey of 1,000 U.S.-based adults (18+). The research explores how economic conditions, food safety perceptions, and restaurant management influence dining behavior across fast casual and other restaurant categories.
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New SmartSense Report Reveals What Restaurants Must Do to Retain Customers as Dining Spend Declines
The findings negate claims that Americans have fallen out of love with the fast casual category, as 70% say they still enjoy mixed bowl-based meal options, such as rice- or salad-based bowls with customizable vegetables, proteins and sauces. Yet, with 66% of consumers cutting back on dining overall, loyalty is increasingly fragile, as consumers question fast casual's standards for food safety, cleanliness, and consistency.
"Our report underscores that consumers continue to value the healthy, flexible options fast casual chains provide," said Guy Yehiav, President of SmartSense by Digi. "However, they're still cutting discretionary spending, and the fast casual sector is not immune to this shift. While financial pressures may be the main reason consumers forgo their go-to burrito or salad bowl in 2026, they are also offering clear, actionable feedback on persistent pain points. These are insights that operators can harness to revamp the customer experience across all their franchises."
Consumers rethink restaurant spend as economic pressure intensifies
Fifty-nine percent (59%) of consumers report worsening economic conditions over the past six months, reinforcing signals shown in reports of declining consumer sentiment and hiring rates. In response, 66% say their dining-out budget has tightened in the last year. When money is tight, consumers say they're likely to reduce spending across every restaurant category:
- 78% say they decrease spending at sit-down establishments, i.e. full-service restaurants
- 69% say they decrease spending on fast casual restaurants — primarily fast counter service often with customizable order options, such as bowl-based formats
- 58% say they decrease spending on quick-serve restaurants (QSRs), such as traditional drive-thru fast-food options
Fast casual, however, remains resilient among the very group reported to negatively impact the sector: Gen Z. When money is tight, 75% of Gen Z say they are more likely to choose fast casual over sit-down options, and nearly half (49%) say they increase spending in the category. Baby boomers, on the other hand, remain resilient across the board in 2026, but almost half (46%) are still saying their economic circumstances have worsened and they're less likely than average to report a tighter dining out budget (56% of Boomers vs. 66% overall). Yet, both groups have high expectations for food safety. These findings highlight the importance of delivering strong value without compromising experience. Millions of Americans are still patronizing restaurants, but every dollar counts more.
Safety concerns and skepticism raise the bar for operators
While 70% of consumers say they enjoy fast casual staples like customizable bowls, perceptions around safety are influencing brand trust. Stakes are high for operators when it comes to food safety:
- Sixty percent (60%) of consumers, and 68% of Gen Z, believe fast casual restaurants are more likely to cut corners on food safety than full-service establishments
- Fifty percent (50%) of consumers overall, rising to 61% of Gen Z, say these restaurants are more prone to food recalls
- Sixty-eight percent (68%) of consumers say they would stop visiting a restaurant permanently after a food safety issue
- Fifty-seven percent (57%) say inconsistent experiences across locations would have the same effect and prevent returning
- Fifty percent (50%) cite disorganized staff and 42% point to slow service as reasons they would stop returning to a brand
However, there are ways restaurants can build trust.
Consistency and experience determine long-term loyalty
Fast casual brands depend heavily on repeat visits. Restaurant cleanliness, brand reputation, and food safety technology use are all factors that drive loyalty:
- Thirty-seven percent (37%) of consumers purchase from fast casual restaurants at least once a week
- Ninety-three percent (93%) of consumers indicate cleanliness of dining areas impacts perceptions of food safety
- Seventy-nine percent (79%) say restaurant reputation drives their perceptions of restaurant food safety
- Sixty-nine percent (69%) say they would be more likely to visit a restaurant that publicly shares its use of technology to continuously ensure food safety
"Increasing regulation and complexity in the restaurant industry are already putting pressure on operators to prioritize food safety, compliance, and operational efficiency," added Yehiav. "Our findings show that consumers want restaurants to take action in these areas too, and enforcing brand, safety, and operational standards shouldn't be treated as box-checking exercises, but as strategic investments that build trust, strengthen loyalty, and drive revenue for years to come."
To read the full report findings, click here. For restaurant operators interested in investing in technologies that drive food safety and operational excellence at scale, sign up for a demo here or stop by the SmartSense booth #6472 at the National Restaurant Association Show, May 16-19, 2026 in Chicago.
About the Study
This survey was conducted among 1,000 U.S.-based adults (18+) to better understand how consumers are thinking about fast casual restaurants in 2026 and how these options compare to quick serve restaurants and fast-food options. In the survey, fast casual restaurants were defined as those that primarily offer fast counter service often with customizable order options, such as bowl-based formats. Quick serve restaurants (QSR) were defined as dining options that traditionally have drive-thru service, and sit-down restaurants were defined as full-service options.
About SmartSense by Digi
SmartSense by Digi, a business unit of Digi International (NASDAQ:DGII), is a leading global provider of Internet of Things (IoT) Sensing as a Service solutions that deliver dynamic and personalized asset tracking, monitoring, process digitization, and digital decisioning across key verticals. The company enables organizations to leverage the power of IoT automation, prescriptive workflows, and insightful analytics to ensure compliance, workforce productivity, brand loyalty, loss prevention, and reduction of waste and energy consumption. Combining new and innovative data-driven approaches with world-class IoT tools, SmartSense partners with enterprises to elevate their business outcomes and asset protection to new heights. For more information, visit www.smartsense.co/.
About Digi International
Digi International (NASDAQ:DGII) is a global technology leader empowering enterprises to build, connect, and manage the critical systems that drive their businesses. Through an integrated portfolio of managed services, intelligent software, secure connectivity, and resilient edge solutions, Digi helps enterprises monitor, update, and control assets in real time, strengthen compliance, streamline workflows, and keep distributed operations running without interruption. Since 1985, Digi has enabled organizations worldwide to modernize operations and confidently connect millions of devices. Learn more at www.digi.com.
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