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Restaurants losing ground to grocery stores

Restaurants losing ground to grocery stores

David Goodman | Apr 26, 2026 |

Grocery stores and convenience stores are increasingly taking share from traditional restaurants as consumer dining habits continue to shift. A new Tillster report highlights a more fragmented food landscape, with diners placing greater emphasis on convenience, speed, and overall experience.

While restaurant visits are declining, 36% of consumers say they are going to grocery stores more often for food, and 33% report increased visits to convenience stores. These nontraditional food providers are gaining ground on perceived value, offering quicker, more flexible options that better align with changing consumer expectations.

At the same time, restaurant loyalty is weakening, with nearly half of diners saying their favorite brand has changed in the past year. Many consumers are also cutting back on delivery due to added fees and opting for lower-priced menu items, further shifting where food dollars are spent.

David Goodman

David leases high-quality shopping centers, represents select retail clients and sells vacant bank properties. 

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