Restaurant Industry Trends 2025: Growth, Technology, and Consumer Insights

The restaurant industry is dynamic, constantly shifting in response to consumer behavior, economic pressures, and technological advancements. To stay competitive, operators must adapt to these trends and find innovative ways to enhance their offerings and operations. Keep reading to get actionable insights to help your restaurant adapt and grow.  

The Soaring Popularity of Non-Alcoholic Beverages  

The beverage sector is experiencing rapid growth, with non-alcoholic cocktail sales increasing 350% year-over-year. This continues to be a space for growth and creativity. As traditional soda costs increase, restaurants find opportunities to create alternative non-alcoholic beverage choices in flavored waters, lemonades, and juices.  

Operators should proactively explore and diversify their beverage menus, keeping operational systems in mind to capitalize on this substantial growth area, where non-traditional choices are seeing a remarkable 35% growth rate. 

Leveraging Technology to Enhance Customer Experience and Efficiency  

In 2024, a significant 73% of restaurant operators increased their technology investments, focusing on enhancing customer experience and operational efficiency. This trend continues as more customers order via kiosks or online platforms, where visual menus and customization options enhance their experience.  

This technological shift allows restaurants to be innovative in their service models. Staff can move directly from behind the counter to assist guests, creating a more personalized and guided ordering process.  

The Appeal of “Affordable Joy” and the Value of Experience  

Restaurants remain a source of “affordable joy” for consumers. With increased remote work and rising travel costs, consumers are looking for an experience when dining out. They want a place to escape, make memories, and connect with family and friends. The average customer finds personal preference more important than price. Therefore, operators need to know the perceived value of their offerings before adjusting prices.   

Consumers are increasingly concerned about price increases, with consumer sentiment declining by 18% in the last two months. In this environment, delivering exceptional quality and service is paramount to ensuring a positive guest experience and maintaining customer loyalty. Overall consumer confidence in the economy is at its lowest point since 2021, underscoring the need for value-driven offerings. 

Responses to a Turbulent Economy and Considerations for Capital Investments  

The current economic climate, marked by downturns, tariffs, inflation (currently at 2.7% in the first quarter of 2025), and supply chain disruptions, requires a strategic response. The industry consensus focuses on core menu items you can execute properly at proper cost margins. Additionally, optimizing operating periods and day parts to align with profit expectations.  

The escalating cost of construction necessitates a cautious approach to capital expenditures. If feasible, delaying major renovations is advisable. With construction materials and equipment costs projected to rise significantly, operators increasingly opt for smaller footprints for new locations to mitigate these expenses. 

Attracting and Retaining Quality Staff  

Hiring and retaining skilled staff remain a key challenge. Despite a 4.2% unemployment rate, unemployment claims are low at 1.1%, indicating that potential hires seek favorable employment opportunities selectively. Restaurants must focus on creating attractive work environments and opportunities to secure the talent needed for success.  

Shifting Consumer Spending Habits  

A significant 40% of guests now spend less when they dine out, citing price and portion size as key pain points. Simultaneously, meal purchases at grocery stores are up 24%, presenting a new and significant competitor to restaurant dining.  

Discretionary guest spending has decreased by 6% in the past two weeks. Given the restaurant industry's heavy reliance on discretionary income, closely monitoring guest and check averages is essential for understanding and responding to these shifts in consumer spending. 

Operators must carefully evaluate their pricing and portion strategies in response to these evolving consumer behaviors.  

Ready to navigate these trends and position your restaurant for success?  

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