Coffee and Sandwiches Lead Menu and Price Growth in Q4 as Operators Balance Innovation and Value

The latest data from Lumina Intelligence’s Menu Tracker shows that while overall food and drink item counts across the market have remained broadly stable, select sectors continue to drive growth through focused expansion, innovation and premiumisation.

Coffee and sandwich operators, alongside QSRs, recorded modest increases in menu item counts, standing out as the most active categories during the quarter. These segments also experienced the highest levels of inflation, reflecting continued pressure from ingredient costs that are being passed on to consumers at a faster rate than in other parts of the market.

Despite pricing pressures, operators are using menu innovation as a key tool to maintain consumer interest. New dishes are being introduced at only a marginal price premium, signalling a clear effort to balance novelty with affordability.

Restaurants, in particular, are leading this approach, launching new menu items at the highest rate as they seek to differentiate themselves and encourage repeat visits in an increasingly competitive dining landscape.

The data also highlights a continued shift towards premiumisation as a strategic lever. Operators are selectively increasing prices on higher-cost main dishes and popular starters, using these categories to drive incremental spend. Encouragingly for operators, consumers appear willing to pay more for dishes that offer greater complexity or perceived quality, suggesting that premiumised offerings continue to resonate when value is clearly communicated.

Overall, the Q4 Menu Tracker findings underline an industry navigating cost pressures with precision, keeping menus tight, innovating selectively, and leaning into premiumisation to protect margins while remaining attractive to value-conscious consumers.