At Novella Brandhouse, through our strategic partnership with MKA Collective, we’re always scanning the horizon for trends that shape the food and beverage industry. Lately, one question has been on our minds: Why are established brands doubling down on marketing even in the face of tariffs and rising costs?
Tariffs & Rising Pressures
For CPG brands, restaurants, and retailers, recent tariffs have added strain to already tight margins. Restaurants, in particular, are facing higher costs for imported ingredients, packaging, equipment, and supplies. According to Leverage, specialty items like spices, cheeses, wines, and even disposables now carry heavier price tags.
According to Restaurant Drive, restaurants are adapting by simplifying menus, substituting ingredients, and cutting low-margin dishes. Fast-casual chains are squeezed, fine-dining establishments are fighting to preserve their brand experience, and consumers are becoming increasingly selective about where and how they spend. Add to that a decline in dine-in traffic, and the picture looks grim.
Yet, against this backdrop, established brands are making a bold choice: continuing to invest in marketing despite tariffs and changing consumer behaviors.
The Shift to Value & Experience
In 2025, the food and beverage market has pivoted from simply pushing products to building experiences. Customers are drawn to value, yes, but also to brands that deliver authenticity, nostalgia, familiarity, and innovation. When wallets are tight, consumers choose the brands that “get them.”
We’ve seen some notable wins and misses this year. Taco Bell’s Decades campaign tapped into early-2000s nostalgia, complete with throwback pricing, and scored big with younger audiences seeking comfort and fun. Cracker Barrel, on the other hand, faced backlash for a logo redesign that strayed too far from its roots, ultimately reverting to the original.
The lesson? People gravitate toward what’s familiar and true. Authentic ingredients, approachable price points, and a consistent brand experience build trust. Nostalgia bridges generations, creating loyalty that lasts.
Where Marketing Dollars Are Going
According to Marketing Drive, despite cost pressures, many food and beverage brands are increasing their digital spend. Why? Because it’s measurable, targeted, and ROI-driven. But there’s also renewed energy in out-of-home advertising—a channel that feels safe, trusted, and free of digital fatigue. Billboards, transit ads, and point-of-purchase displays resonate because they’re tangible and familiar. (Our recent blog talks all about this, check it out here.)
Across the board, marketing investment is flowing into:
- Creative campaigns that balance value with experience.
- Product design and LTOs that excite customers.
- Loyalty programs that reward and retain.
- Out-of-home and digital advertising that meet customers where they are.
Final Takeaway
Economic uncertainty isn’t slowing down marketing; it’s making it more intentional. Brands that keep their voice strong, connect authentically with customers, and deliver memorable experiences are the ones that will thrive while others pull back.
At Novella Brandhouse, we help scaling and established businesses navigate these kinds of challenges. From sharpening your messaging to making smart decisions about where to spend your marketing dollars, our team knows how to balance strategy and creativity to maximize impact. If you’re ready to invest wisely—even in uncertain times—let’s talk.
Sources: Imbibe, Marketing Drive, Leverage, Reuters
