As quick-service restaurant operators navigate an increasingly competitive and ever-evolving market, understanding industry trends is of paramount importance. Restaurant365’s 2025 State of the Restaurant Industry Report offers a comprehensive analysis of the trends, challenges, and opportunities shaping the foodservice landscape.
This report provides an essential resource, delivering actionable insights into consumer preferences, technological advancements, and economic factors influencing the industry. By understanding the data and trends highlighted in the report, operators can make informed decisions to adapt, innovate, and thrive in the face of ongoing change.
“The report is a biannual initiative where we survey our users directly through our platform,” says Marc Cohen, solutions architect for Restaurant365. It’s Restaurant365’s way of gauging industry sentiment, especially in regards to key areas like sales, labor, and cost of goods.
The 2024 findings revealed persistent challenges such as high inflation, cautious consumer spending, and economic uncertainty—trends expected to carry over into early 2025. “Nearly 80 percent of respondents reported rising food costs, with most seeing increases in the 1–5 percent range,” Cohen says.
Labor costs also rose for 90 percent of respondents, a 10 percent jump from six months ago, largely driven by minimum wage hikes across various states. Turnover remains a critical issue, with 40 percent of respondents experiencing rates between 11–25 percent often at the higher end of that spectrum. “These challenges are prompting operators to focus their budgets on workforce enhancements and marketing initiatives aimed at driving sales,” Cohen says.
One notable shift from previous years is the growing emphasis on sustainability practices. Approximately 75 percent of respondents reported adopting initiatives such as waste tracking, improved inventory management, and eco-friendly packaging—a significant increase. Many operators are also prioritizing staff training to reduce waste and instill the importance of these efforts within their teams. Beyond cost control, local sourcing and sustainability resonate with eco-conscious consumers, further enhancing their appeal and aligning with evolving customer values.
Positive trends for 2025 reflect the restaurant industry’s adaptability and commitment to enhancing the guest experience. A growing focus on guest engagement is evident, with many operators prioritizing loyalty programs and target marketing to build stronger customer connections.
Investments in workforce development are another promising trend. “About 30 percent of respondents plan to invest in workforce training and benefits to improve retention and service quality,” Cohen says. “Digital learning management systems (LMS) are increasingly popular for consistent staff training, which improves retention, service, and guest experience—all of which drive profitability.”
Shifts in consumer dining habits also present growth opportunities. With 35 percent of respondents reporting increased takeout and delivery, restaurants are adapting to meet the demand for off-premises dining. “To adapt, operators must carefully analyze delivery margins and ensure their food maintains quality through the delivery process,” Cohen says. “I always recommend testing how your food holds up during delivery. It will remain a strong revenue stream in 2025, so restaurants need to optimize it while maintaining profitability.”
Automation is on the rise across the industry, with operators looking to leverage technology in many ways. Restaurant365’s automation practices are poised to revolutionize quick-service restaurants in 2025 by empowering operators with real-time data and advanced tools to streamline operations. By automating time-consuming tasks like inventory tracking, invoice entry, and ordering, Restaurant365 allows quick-service restaurant operators to focus on guest engagement and revenue-driving activities.
To learn more about Restaurant365’s 2025 Trend Report visit its website.
Abby Winterburn