The restaurant and bar industry is poised for growth in 2025, driven by resilient consumer demand, experience-driven dining, and innovation. According to the National Restaurant Association's 2025 State of the Restaurant Industry report, the industry is expected to reach $1.5 trillion in sales and add more than 200,000 net new jobs, bringing total restaurant and foodservice employment to 15.9 million by year-end[1][4].
Despite this growth, competition will remain strong, with more than 8 in 10 operators expecting their 2025 sales to be either higher or about the same as 2024. However, operators also expect competitive pressures to intensify in 2025[1][4].
Consumers have pent-up demand for restaurant meals, with 81% of consumers reporting they would use restaurants more frequently if they had the money. This sentiment cuts across all segments, from on-premises dining at table-service restaurants to visiting quick-service restaurants and having food delivered at home[1][4].
To meet this demand, restaurants are focusing on providing more experiences, such as tasting events, private dinner events with a chef, and cooking classes at a restaurant. Additionally, operators are using technology to streamline operations and enhance customer satisfaction. For example, AI is being used to optimize procurement and supply chains, making them more efficient, intelligent, and sustainable[2].
However, the industry still faces challenges, including rising labor and food costs, as well as the ongoing struggle of recruiting and retaining employees. To overcome these challenges, restaurants are adopting strategies such as building strong supplier relations, incorporating demand forecasting, and using technology to streamline operations[5].
In terms of supply chain developments, restaurants are using advanced AI tools to improve their supply chains, including predictive analytics tools to anticipate customer demand and minimize overstock and food waste. Additionally, systems with built-in AI are being used to improve stocking and purchasing, and to track carbon footprints and reduce waste[2].
Compared to previous reporting, the industry's outlook is more positive, with 27% of operators expecting to be more profitable in 2024, and 45% expecting to be as profitable as they were in 2023[3]. However, the industry still faces challenges, including intense competition and rising costs.
Overall, the restaurant and bar industry is poised for growth in 2025, driven by resilient consumer demand and innovation. However, operators must continue to adapt to changing consumer behavior and navigate challenges such as rising costs and supply chain disruptions. By using technology and adopting effective strategies, restaurants can streamline operations, enhance customer satisfaction, and achieve profitability.