In 2024, restaurant operators faced several challenges testing their resilience and adaptability. Labor shortages persisted, with many establishments struggling to maintain adequate staffing levels. Additionally, shifting consumer expectations, including a desire for enhanced digital experiences and streamlined service, pressured restaurants to innovate rapidly. Amid these hurdles, technology emerged as a critical ally.
For years, labor instability and hiring challenges have been top concerns for restaurant operators, making it difficult to maintain consistent service and scale effectively. Square, a comprehensive, streamlined POS system, published the Future of Restaurants 2025 report to help shed light on the challenges and solutions for food and beverage operators today. The report found staffing shortages have pushed owners to rethink their reliance on traditional labor models.
For example, Square Payroll helps operators track hours and accurately pay employees. This reduces a significant friction point so everyone can focus more on productivity and customer service. As a result, 75 percent of restaurant leaders say they now spend more time on business operations and management activities. “With Square Payroll, the team can make timecard adjustments if they forget to clock in or clock out,” says Vernon Lindholm, co-founder of Offset Coffee. “All payroll is run seamlessly through that, and on the back end we don’t have any issues with our team getting paid.”
With higher costs and reduced consumer spending squeezing profits, restaurant operators are increasingly relying on loyalty programs to retain customers and drive revenue. In fact, 43 percent of restaurant leaders surveyed in Square’s report implemented loyalty discounts, alongside other promotions like combo deals and coupons.
Tools like Square for Restaurants make it easier to manage and optimize these programs. With real-time sales data and insights available through the Square Dashboard app, operators can track what’s working, compare performance over time or by location, and make informed decisions that boost both customer retention and profitability.
Square doesn’t just help track loyalty program success—it drives real results for operators across the country. Take Gioia’s Deli in St Louis, for example. Using Square’s restaurant tools and detailed sales reporting, co-owners Alex and Amanda Donley increased their catering business by 500 percent. “Square makes us a more efficient business,” the Donleys say. “Which ultimately makes the customer experience better.”
Over the past five years, the restaurant experience has undergone a major transformation, benefiting operators, employees, and customers. Technology more widely implemented during the pandemic—like online ordering and self-service kiosks—has stuck around, streamlining operations and meeting changing customer expectations.
Today, while many diners still value traditional service, they also prioritize convenience: Square’s report found 59 percent surveyed say they’re unlikely to return to restaurants without easy ordering and payment operations. Tools like kiosks, which were once niche, are now widely appreciated—especially by younger guests—giving operators more ways to serve their community efficiently and profitably.
Oakberry Acai adopted Square Kiosks to streamline service at its 700+ global locations. The kiosk not only keeps lines moving but also gives customers an easy, customizable ordering experience. “Ordering through Square Kiosks means customers can build their acai bowl exactly to their own tastes,” says Maverick Bides, general manager at Oakberry Acai. “We’ve also seen shorter lines, less waste, and an increase in the average order, because it’s so fast and easy for customers to add on extra items.”
As the restaurant industry continues to evolve, 2025 is shaping up to be a year defined by adaptability, data-driven decisions, and a renewed focus on customer service. Tools like Square are not only easing daily operational burdens—they’re enabling long-term growth, strong customer relationships, and greater efficiency.
To learn more about Square and the tools it offers, visit its website.
