With social media driving foot traffic, tariffs raising ingredient costs, and the shadow of Covid still looming over restaurateurs, American dining is in flux. Even for popular restaurants, the downward trend of alcohol consumption among Americans — especially in Gen Z — is upending the predictibility of profit margins.

“People are tracking their macros. People are taking Ozempic or its equivalent. People are drinking much less,” explains Devra First, restaurant critic and food writer at the Boston Globe. “So, even when restaurants are crowded, the ticket price may be lower, because it’s not padded out with a lot of alcohol.”

But diners’ habits aren’t the only forces destabilizing the restaurant industry. Jaya Saxena, correspondent for Eater.com, said heightened tariffs on a variety of imported ingredients, from coffee to cinnamon, are raising costs, too.

“I was speaking to the chef at a Sri Lankan restaurant saying there was a very specific palm treacle that you can’t grow in the U.S.; we don’t have the climate for it,” Saxena said. “And so there are really no other options: You either have to charge more, you have to use less of the ingredient or change around your menu, which also might not be possible depending on the cuisine, or you risk just having your finances completely upended and maybe you won’t survive.”

With most full-service restaurants already carrying razor thin margins of three to five percent, this hike in costs reflects onto customers. To counter unprecedented challenges, restaurateurs are turning to creative solutions, like placing a greater emphasis on the visual display of dishes.

“The places that I see being very successful are places that really emphasize hospitality, that make you feel a certain way in that restaurant,” Saxena said. “That could be a variety of Instagrammable experiences.”

In Boston, several prestigious restaurants await the arrival of the city’s first Michelin stars. But can social media or buzzy culinary awards be enough to get customers back through their doors?

“Where there’s a challenge, there’s always going to be a new idea to meet it. It may be difficult, but we will see creativity and innovation come from the challenge,” First said.

Guests

  • Jaya Saxena, Eater.com correspondent, series editor for the annual collection, “The Best American Food and Travel Writing”
  • Devra First, restaurant critic and food writer for The Boston Globe