TouchBistro Industry Report

2025 State of Restaurants Report

Explore the top challenges, biggest opportunities, and must-know trends for independent restaurants.

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Report Highlights

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how much more operators are spending on food costs compared to last year

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have seen an increase in takeout/delivery sales compared to last year

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feel positive about the use of AI in restaurants

2025 State of Restaurants Report

Dive Into the Latest Restaurant Industry Trends

The best way to uncover the latest restaurant industry trends is to go straight to the source, which is why we teamed up with Maru/Matchbox to survey more than 600 independent full service restaurant owners and operators from across the U.S.

Here you’ll find a sneak peek at the state of the restaurant industry and the top restaurant trends for 2025. For a full picture of the changing restaurant landscape, download the complete restaurant industry report now, or deep dive into our New York City, Los Angeles, Chicago, and Texas reports.

FINANCIAL HEALTH

Food & Inventory Costs Cited as the
#1 Source of Financial Strain

Like last year, this year’s restaurant research revealed that food costs continue to eat into restaurants’ profits. More than a quarter (26%) of respondents said that food costs have been their biggest source of financial strain this year and 18% reported that higher food costs were the number one obstacle to growing their business right now.

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Proportion that Cited Inventory as the Greatest Source of Financial Strain

STAFFING & LABOUR

99% of Operators are Spending More on Labor

Like food costs, concern around rising labor costs is among the biggest restaurant industry trends right now. Partially fueled by rising minimum wage rates and the overall expectation of higher salaries, more expensive payroll was cited as the number one labor challenge among operators. In fact, 99% of full service operators reported spending more on labor this year.

 

But rather than simply reduce headcount to get costs under control, operators instead reported increasing productivity (39%), increasing staff retention (36%), and introducing new technology (35%) as ways to keep labor costs manageable.

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Strategies Implemented to Reduce Labor Costs

%

Increase productivity

%

Increase staff retention

%

Introduce new technology

%

Cross-train/repurpose staff

%

Use restaurant scheduling software

%

Create labor targets

%

Use POS sales data to predict scheduling needs

%

Reduce hours of operation

%

Reduce staff headcount

TAKEOUT & DELIVERY

Operators Report a 33% Increase in Off-Premise Sales

Even during a time of high inflation, one of the most notable restaurant trends uncovered in our restaurant industry report is that FSRs experienced a noticeable bump in takeout and delivery sales. A whopping 82% of operators surveyed reported seeing an increase in takeout and delivery sales compared to last year.

 

And among those who said they had experienced an increase, operators reported that off-premise sales increased by an impressive 33% on average. In other words, even during a period of high inflation, takeout and delivery has become a habit that consumers simply aren’t going to break and it’s likely to remain one of the biggest restaurant trends in 2025.

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Change in Takeout/Delivery Sales Compared to Last Year

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Significantly increased

0 %

Slightly increased

0 %

Remained the same

0 %

Slightly decreased

0 %

Significantly decreased

MARKETING

Operators' Use of TikTok Nearly Doubles

With 99% of operators reportedly using at least one social media platform for their business, it’s clear that establishing an online presence is now essential. While Facebook is the most common, TikTok has seen a massive spike in usage, with nearly half of operators (48%) now using the platform, compared to just 26% who said the same in 2023. In part, the shift towards TikTok may be fueled by Gen Z’s preference for TikTok as a search engine over other channels like Google, but also the fact that organic content can gain much wider reach thanks to TikTok’s ‘For You Page’ discovery tool. With this platform only continuing to grow, the rise of TikTok as a marketing tool is sure to be one of the biggest restaurant industry trends well into next year.

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Social Media Platforms Used by Restaurants

TECHNOLOGY

More Productive Staff Cited As the #1 Benefit of Automation

While restaurateurs used to take a more cautious approach to new technology, FSRs today appear to be embracing automation with open arms. About half of the operators surveyed reported automating everyday business operations, with online ordering being the most common automation, followed by invoicing and email marketing. Though certainly one of the biggest trends in restaurants right now, automation is also delivering tangible benefits for operators. Virtually all operators report seeing some benefits from automation, with 42% reporting more productive staff, 41% reporting an increase in sales, and 40% reporting business growth.

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Benefits of Restaurant Automation

42%

More productive staff

41%

Increased sales

41%

More efficient FOH operations

40%

Business growth

37%

Faster service

34%

Saved money

36%

Saved time

34%

More efficient BOH operations

31%

Happier customers

Methodology

TouchBistro partnered with research firm Maru/Matchbox to survey more than 600 full service restaurant owners, presidents, and area/general managers across all 50 states about the state of the restaurant industry, with an added focus on eight key cities: New York City, Los Angeles, Chicago, Dallas, Houston, Austin, Denver, and Las Vegas. The restaurant research was conducted from June 27 to July 15, 2024. The statistically significant survey results are accurate 19 times out of 20.

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Download the 2025 State of Restaurants Report

For a complete picture of the changing restaurant industry landscape, download the 2025 State of Restaurants Report for free today!

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Need help navigating the latest trends?

TouchBistro’s all-in-one restaurant management system is equipped with all the front of house, back of house, and guest engagement solutions you need to run and grow your business.

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Front of House

Deliver the speed and quality of service that guests expect.

Back of House

Control costs and run your kitchen more efficiently.

Guest Engagement

Engage guests in-venue and online to keep them coming back for more.

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