How Restaurants Can Handle the K-Shaped Economy

Why It Matters

Balancing technology with personal service and affordable pricing will determine restaurant resilience amid a polarized economy.

Key Takeaways

• Tech adoption must complement, not replace, high‑touch hospitality.
• Non‑alcoholic beverage innovation offsets declining alcohol sales.
• K‑shaped economy forces restaurants to tailor value for low‑income diners.
• AI and robotics mature; early adopters guide efficient implementation.
• Trade policy advocacy aims to preserve affordable food imports.

Summary

The podcast with NRA CEO Michelle Cororsmo explores how restaurants can thrive in today’s K‑shaped economy by marrying technology with the human touch. She emphasizes that while automation—robot fryers, AI scheduling, and even robot baristas—offers cost efficiencies, the core of dining remains personal service that justifies higher spend.

Cororsmo points to two major industry shifts: the plunge in alcohol consumption and the surge in non‑alcoholic beverage creativity, which many operators are using to fill the revenue gap. She also highlights the widening income divide, noting that consumers earning under $50,000 are curbing discretionary dining, while higher‑income households continue to spend, forcing brands to recalibrate value propositions for each segment.

Key quotes illustrate the mindset: “High‑tech, high‑touch is the balance we need,” and “The future’s already here; it’s just not evenly distributed.” These capture the tension between rapid tech adoption and the uneven rollout of benefits across the market. Cororsmo also details the NRA’s lobbying on the US‑Mexico‑Canada trade pact to keep food and beverage imports affordable, underscoring policy as a lever for cost control.

The implications are clear: restaurants that integrate technology wisely, diversify beverage offerings, and advocate for trade policies that protect price stability will better navigate the polarized consumer landscape and sustain profitability.

Original Description

How can restaurants deal with the K-shaped economy?

This week’s episode of the Restaurant Business podcast A Deeper Dive features Michelle Korsmo, the president and CEO of the National Restaurant Association.

We typically interview Korsmo at the National Restaurant Association Show every year. This year, we discussed a variety of topics, including the association’s legislative priorities, how it deals with the White House, technology, industry trends and other topics.

We also talk about the economy and its impact on restaurants. The economy is bifurcated. Wealthier consumers have money. Low-income consumers do not. And they are cutting back. The result is a wide gulf in performance between restaurant chains.

It’s always interesting chatting with Korsmo, so check it out.

00:00 High Tech vs High Touch

00:50 Industry Overview & Big Trends

02:00 Robots, AI & Restaurant Innovation

03:30 Beverage Boom & Declining Alcohol Sales

05:15 The K-Shaped Economy Explained

07:00 Why Restaurant Tech Is Taking Over

09:00 The Real Meaning of “Value” Today

11:00 Inflation, Pricing & Consumer Pushback

13:30 Tariffs, Trade & Food Costs

17:30 Economic Uncertainty & Spending Behavior

19:30 Why Restaurants Still Win

20:30 Profit Margins & Industry Pressure

22:30 The Hard Truth About Running Restaurants

24:00 Why the Industry Still Thrives

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