The restaurant industry is poised for a strong 2025. Restaurant Hospitality (RH) reports that restaurants passed the $1 trillion sales mark for the first time in 2024 and “that pace isn’t expected to slow down this year.”
The National Restaurant Association’s 2025 State of the Restaurant Industry report projects that sales will reach $1.1 trillion this year, up 4%. The entire food service industry, including lodging, bars, and schools, is predicted to hit $1.5 trillion in 2024.
While, no doubt, some of the increased revenues are due to higher prices and inflation, the report notes consumers want to eat out more—and 80% say they would if they had the money. Plus, 80% of adults say going to a restaurant is a better use of their leisure time than cooking at home. And RH reports that at a recent conference, restaurant executives were hopeful that consumers were feeling better about their financial condition. The National Restaurant Association’s report reveals that 80% of restaurant operators are “optimistic that their sales will be either higher or about the same as in 2024.”
RH notes, however, “Those same operators expect competitive pressures to intensify in 2025. The National Restaurant Association report shows that 29% of operators plan to open new locations this year, with limited-service operators (35%) more likely to do so than full-service operators (22%).”
2025 Trends
RH says 2025’s defining trends are “value, loyalty, experience, and technology.”
Value
It says the association’s report says 95% of restaurant operators say their customers are more value-conscious. Last year, 55% of operators added new discounts, deals, or promotions. Other successful value-based strategies “include limited-time offers, value/combo meals, and buy-one-get-one-free deals. About 80% of consumers say they would take advantage of discounts for dining on less busy days of the week or times of day, while the same percentage say they’d take advantage of a discounted add-on.”
Value is not just about promos. When deciding where to eat, consumers are also influenced by cleanliness and friendly service.
Loyalty
2024 saw an acceleration in the adoption of loyalty programs. The report says that won’t slow this year because consumers want it—61% of restaurant customers say a loyalty program is an important factor when choosing a restaurant for a delivery order, while 54% of limited-service customers and 41% of full-service customers say they prefer places where they are loyalty members.
On-premises and off-premises balance
Restaurant operators are trying to find the balance between dine-in and off-premises businesses. While 90% of fine dining operators and 87% of casual dining operators see in-person dining as critical to their success in 2025, off-premises dining remains essential. Consumers, including 82% of consumers and 89% of millennials, would order delivery more often if it fit their budgets. RH says, “Takeout remains popular, especially for Gen Z (67%) and millennials (64%) who view it as essential.”
Plus, “most consumers say they wish they had more choices of restaurants that offer takeout and delivery, and a vast majority want more variety on the off-premises menu.”
The Restaurant Hospitality article contains a lot of information on technology. If you’re in the restaurant business—or want to be—you should definitely check it out.
Diner photo by Monkey Business/Shutterstock
