1. Patronage polarization
Consumers are facing increasing income inequality, and this instability has hurt many consumers’ economic outlook. Just 38% of consumers expect the economy to improve in 2017. Lower- and middle-class consumers will curb spending until instability subsides, but expect few cutbacks among affluent consumers. Operators will fine-tune the balance of affordability and quality, and cater to the affluent with more upscale food and dining.