Purpose Digital transformation has produced “the phygital restaurant,” where physical ambiance and digital interactivity converge to generate sensory, symbolic and socially mediated dining experiences. Despite the rapid proliferation of Instagram-optimized, technologically augmented venues, services marketing scholarship has been slow to examine how these hybrid environments are experienced by consumers and strategically orchestrated by providers within a single analytical frame. This study aims to address that gap. Design/methodology/approach This qualitative, interpretivist study is guided by experiential consumption theory (ECT) (Holbrook and Hirschman, 1982). Study 1 draws on in-depth interviews with 15 restaurant owners across metropolitan Indian cities; Study 2 draws on interviews with 25 Generation-Z consumers. Both data sets were analyzed thematically and integrated within a single cross-study framework. Findings The findings of the two studies reveal phygital dining servicescape as a coconstructed ecosystem, which are shaped simultaneously by the deliberate design intentionality of owners and the participatory meaning-making practices of Gen-Z consumers. Research limitations/implications The findings extend ECT into the phygital domain, reconceptualize the servicescape as a constitutively hybrid construct and advance the emergent paradigm of phygital service research (PSR) by providing its first empirically grounded, multistakeholder account of hybrid dining experiences. Practical implications The findings offer restaurant owners and hospitality marketers an empirically grounded framework for aligning phygital servicescape design with Gen-Z expectations across aesthetic, participatory, ethical and communal dimensions. Social implications Phygital dining environments can generate social capital, everyday well-being and community belonging for urban Gen-Z consumers, while requiring evaluation for inclusivity across diverse segments. Originality/value This study extends ECT into the phygital domain, reconceptualizes the servicescape as a constitutively hybrid construct and advances PSR by providing its first empirically grounded, multistakeholder account of hybrid dining experiences.
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Sengupta et al. (2026) studied this question.
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