The restaurant and bar industry is poised for growth in 2025, driven by a positive economic environment and resilient consumer demand. 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].

Restaurant operators are cautiously optimistic about business conditions, but competition will remain strong. More than 8 in 10 operators expect their 2025 sales to be either higher or about the same as 2024. However, they 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 tableservice restaurants to visiting quickservice restaurants, snack places, delis, or coffee shops, and having food delivered at home[1][4].

Restaurants aim to attract more in-person diners, with the majority of operators saying increasing traffic on-site and getting diners back in their seats will be more important to their restaurant's success in 2025. This is especially important to 90% of fine dining operators and 87% of casual dining operators[1][4].

Despite the positive outlook, many operators say they will continue to grapple with many of the same challenges they faced in 2024, including rising labor and food costs, and the ongoing struggle to recruit and retain employees[1][4].

In terms of technology, the industry is expected to increasingly leverage technology for waste tracking and diversion, with the rise of advanced AI-driven platforms that analyze waste generation, optimize collection routes, monitor compliance with regulations, and provide real-time insights into waste management[5].

The movement towards plant-based foods and locally sourced ingredients will continue to gain momentum in 2025, reducing overall food waste through better inventory management and demand forecasting. This shift will likely be complemented by an increased focus on reducing waste generated from animal products[5].

Regulatory pressures on the food service industry are expected to increase, with more states and municipalities implementing stronger organics recycling laws in 2025, mandating food waste diversion for commercial food service operators[5].

In response to current challenges, restaurant and bar industry leaders are focusing on tech-enabled growth, cross-industry partnerships, and franchise expansion. By leveraging technology, businesses can scale efficiently and adapt to the growing demand for convenience, personalization, and seamless service in both global and local markets[5].

Examples of how industry leaders are responding to current challenges include the use of AI-driven supply chain solutions to optimize procurement and reduce waste[2]. Additionally, restaurants are seeing a shift in demand, with increased orders for office catering and lunch pickups, and are responding by offering convenient delivery or curb-side pickup options[5].

Overall, the restaurant and bar industry is poised for growth in 2025, driven by a positive economic environment and resilient consumer demand. However, operators will need to navigate ongoing challenges, including rising labor and food costs, and the ongoing struggle to recruit and retain employees. By leveraging technology and adapting to changing consumer behavior, industry leaders can position themselves for success in the year ahead.

This content was created in partnership and with the help of Artificial Intelligence AI