The LuLac Edition #5, 5560, February 1st, 2026

 

DINING OUT INFLATION

We’ve all noticed it. The cost of dining has risen because of inflation. Restaurant prices rose 4.1% in 2025, roughly double the pace of grocery inflation, reflecting five years of steady increases in food and labor costs that have climbed 35% each.

A new McKinsey report, “What U.S. Consumers Want From Restaurants in 2026,” confirms that value and pricing remain top of mind, but cost alone isn't what's driving diners away. Among consumers who said eating out "wasn't worth the money," the top complaints were food quality and portion size, with more than half citing each, according to the survey of roughly 900 U.S. consumers fielded in August 2025.

Then there’s delivery which many baby boomers have used. That’s becoming more expensive too. For years, delivery apps promised a simple trade: convenience for a fee. As those fees climbed, the math started to break down. Service charges, delivery costs, inflated menu prices, and tips. Now diners aren't just cutting back on delivery, they're stepping out of the system altogether.

Pickup orders grew 14% year over year, with customers spending about the same per visit. Delivery went the other direction: order totals fell 6%, and overall spending dropped 12%. Diners still want the food, but they're just no longer willing to pay a premium to have it delivered.

The gap has gotten hard to ignore. A 2025 LendingTree study found that delivery now costs nearly 80% more than pickup, adding an average of $9.30 per order once all fees and tips are factored in. For the 40% of Americans who say they order delivery at least once a week, that surcharge adds up fast, and for many, the convenience no longer justifies the cost.

For couples and singles, the dent isn’t as bad vs. families who have more mouths to feed. Special dinners out for families have now become just that: one time affairs.

Gen Z's spending at quick-service restaurants has dropped faster than any other generation, down 19 percentage points over the past two years. The shift is striking. Fast food and drive-throughs typically offer what this generation says it wants: affordable prices, customization, and the ability to order from their phones. These restaurants are still losing ground with the demographic that should be fueling their growth.

Gen Z isn't cutting back across the board, though. They still favor sit-down restaurants over quick grab-and-go options entirely. If they're going to leave the house, it's going to be for something social, something that feels like more than a transaction.

Again, the inflation has touched all demographics and each is responding in various ways that point downward.

You might think that when you see a parking lot filled with cars on a Friday or Saturday night things are going well. Well, maybe. My guess is that the days of people hitting their favorite place every week are over. To be sure there are repeat customers as well as regulars but their number will continue to diminish  as costs increase. (LuLac, Food & Wine).

 

COLD WEATHER BARGAINS

It’s cold, you’re hungry, don’t want to get out of the car and need cheap food. Try these options:

Here are some current fast food bargains you can check out:

Arby's: Join Arby’s Rewards and receive a FREE Classic Beef ‘N Cheddar with a $5 purchase.

Wendy's: Get a $5 Biggie Bag that includes a sandwich, nuggets, fries, and a drink.

McDonald's: Check out their $5 Meal Deal, which includes a double cheeseburger, fries, and a drink.

Taco Bell: Explore the Luxe Value Menu, which offers 10 craveable items for $3 or less.

These deals may vary by location and availability, so it's a good idea to check with your local restaurant for the latest offers. My go to is mostly Taco Bell because at least then you get the fiber. 

 

 

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