2025 Foodservice Industry Trends:
Key Insights for Staying Competitive

February 27, 2025

A review of various 2025 restaurant trend reports shows a cautiously optimistic outlook for the industry. However, many restaurant operators believe that challenges similar to those in 2024 will persist, including:

• Rising labor and ingredient costs
• Difficulties in hiring and retaining staff
• Increasing operational expenses

Additionally, new challenges are emerging, such as heightened consumer awareness of health and sustainability, shifts in spending habits due to inflation, and growing demand for innovative flavors and dining experiences. These trends are shaping the industry’s future. This article explores five key restaurant trends to watch in 2025 to help businesses stay competitive in an evolving market.

1. Tech-Driven Transformation in the Foodservice Industry

Technology continues to redefine restaurant operations, with AI playing a critical role in improving efficiency and customer experience. What was once a “nice to have” has now become a “must-have,” primarily due to ongoing labor shortages. As a result, restaurants are increasingly investing in automation and smart technology to optimize operations without compromising quality.

According to Middleby’s 2025 Restaurant Trends Report, labor costs currently make up 20-30% of a restaurant’s total expenses, while average profit margins remain at just 3-5%. As a result, automation and smart equipment are becoming essential for long-term sustainability. ¹

David Portalatin, senior vice president and food industry advisor at global consumer research firm Circana, explains that in the post-pandemic world, finding a highly motivated, high-performing workforce has become a challenge. Technology is stepping in to help. Automation allows staff to focus on higher-value tasks, boosting productivity without replacing workers, as some responsibilities still require human execution.

Technology is not used to eliminate employees but to make them more effective in their roles, points out David Henkes, senior principal and head of strategic partnerships at foodservice research firm Technomic. The ROI might come from having more front-of-house staff engaging with customers, potentially improving the guest experience and driving more traffic. ²

• AI and Automation: Boosting Efficiency, Cutting Costs, and Ensuring Quality
  Innovative Foodservice Group notes that automation is revolutionizing kitchens and service models by streamlining operations, reducing labor costs, and maintaining consistent food quality ³. Some examples of this transformation include:
  
  
  • 📌 Robotic Kitchens: Robotic arms can cook complex dishes with precision and speed, improving order efficiency while also serving as an attraction that enhances a restaurant’s brand image.
    
    
  • 📌 Automated Food Runners: In areas with severe labor shortages, food delivery robots have become increasingly common. While human staff remain indispensable, robots help by covering routine tasks, reducing the distance employees must walk each day by approximately two miles, and allowing them to focus on customer service. ⁴
    
    
  • 📌 AI-Powered Self-Ordering Systems: Once limited to fast-food chains, AI self-ordering systems are now making their way into full-service restaurants. For instance, Haidilao’s noodle concept, Hi Noodle, has implemented AI-powered ordering and payment systems. Customers select pre-plated appetizers and use meal cards for noodles orders. At checkout, AI cameras instantly recognize all items on a tray, streamlining the ordering process and improving overall efficiency. ⁵
    
    
    
    
    
    
• Online Ordering Platforms, Loyalty Programs, and Data Analytics
  As restaurants go digital, loyalty programs and data-driven decisions are becoming essential for customer engagement and driving sales.
  
  
  • Personalized Marketing & Loyalty Programs: With third-party cookies being phased out, first-party customer data is becoming invaluable. Restaurants can use loyalty programs to offer personalized promotions, point-based rewards, and customized meal recommendations, increasing customer engagement and repeat visits. The National Restaurant Association’s (NRA) 2025 report notes that 70% of restaurant operators find loyalty programs beneficial for customer traffic, with 61% of delivery customers and 54% of fast-food patrons considering rewards programs a deciding factor. ⁶
    
    
  • Big Data for Optimized Operations: Data analytics help restaurants understand consumer preferences, improve inventory management, refine menu offerings, and forecast demand trends, leading to better profitability and operational efficiency.

2. The Rise of Health-Conscious and Sustainable Dining

Consumers are increasingly prioritizing health and environmental sustainability, pushing restaurants toward more eco-friendly practices and nutritious menu options.

• Expanding Plant-Based and Allergen-Friendly Menus: The growing interest in plant-based diets and allergen-conscious dining is driving many restaurants to incorporate alternative proteins like plant-based meats, dairy-free milk, and gluten-free options. This shift caters to flexitarians and individuals with dietary restrictions while promoting inclusive dining experiences.
  
  Additionally, fermented foods are gaining popularity due to their health benefits and unique flavors. The global fermented food and beverage market is projected to grow at a 7.2% CAGR from 2021 to 2026. ⁷ Popular fermented ingredients include kombucha, kimchi, tempeh, miso, and gochujang, commonly used in Korean, Vietnamese, and Filipino cuisine. ⁸
  
  
  

  (Photo by Jakub Kapusnak on Unsplash)

  
  
• Sustainable Sourcing and Waste Reduction: Consumers of all ages are expecting businesses to take responsibility for sustainability. Restaurants are responding by minimizing food waste, optimizing supply chains, and adopting eco-friendly packaging. Some are using AI to predict sales and reduce ingredient waste, while others are switching to biodegradable or reusable packaging to cut down on single-use plastics.
  
  Locally sourced ingredients are also gaining traction, with restaurants collaborating with local farms and regional suppliers to enhance freshness, lower carbon footprints, and support local economies.
  
  

  (Photo by Dan Meyers on Unsplash)

3. Navigating Inflation and Economic Pressures with Strategic Pricing

Rising costs have led consumers to be more budget-conscious. To maintain profitability, restaurants are adjusting their pricing models and promotional strategies while avoiding devaluing their brand.

• Value-Focused Limited-Time Offers (LTOs)
  According to Middleby’s report, over 70% of consumers actively seek value-driven menu options, using discounts to save on meals. Instead of simply lowering prices, 55% of operators are introducing value-focused limited-time offers (LTOs) to attract customers—a strategy that has proven effective, with 66% of diners showing a preference for restaurants that offer promotions. ¹ Unlike direct price cuts, limited-time offers may include:
  
  
  • ✅ More for the Same Price” Bundles
    • 📌 Example: Customers get additional items (e.g., free drink and fries with a burger) instead of a discount, enhancing perceived value.
      
      
  • ✅ Limited-Time Premium Item Discounts
    • 📌 Example: Featuring high-value products (e.g., a $10 Wagyu burger deal) encourages impulse purchases without setting long-term pricing expectations.
      
      
  • ✅ Exclusive Seasonal Promotions
    • 📌 Example: Seasonal drinks or dishes (e.g., buy-one-get-one-free matcha lattes) create a sense of urgency and boost trial rates.
      
      
  • ✅ New Menu Item Trials
    • 📌 Limited-time offers encourage customer visits and provide insights into potential menu additions.

Unlike permanent discounts, which can lead to price wars and brand dilution (weaken brand value), strategic promotions help increase customer traffic while maintaining profitability.

🌟 Value-focused LTOs emphasize the following:

1. Consumers perceive the deal as a good value without diminishing the brand’s worth.
2. The offer is time-limited, preventing customers from developing a habit of waiting for discounts.
3. Bundles or unique products make the promotion more appealing, rather than simply lowering prices.

• Simplified Menus for Efficiency and Experience
  Many brands are streamlining menus to optimize operations, reduce costs, and improve customer satisfaction. A complex menu can strain kitchen efficiency and overwhelm diners. By focusing on high-performing dishes and cross-utilizing ingredients, restaurants can minimize prep time, reduce inventory waste, and ensure consistent quality.
  • 📌 Example 1: McDonald’s has trimmed underperforming menu items to enhance speed and efficiency.
  • 📌 Example 2: Starbucks is removing low-demand drinks to reduce wait times and improve order consistency starting in March 2025. ¹⁰

A streamlined menu also facilitates digital and self-ordering systems, allowing customers to make quicker decisions, improving ordering efficiency, and enhancing the overall dining experience.

4. The Evolution of Dining Experiences: Engagement, Inclusion, and Social Influence

Modern diners seek more than just good food—they value immersive, interactive, and inclusive dining experiences. Restaurants are adapting by:

• Enhancing guest engagement through personalized service and interactive elements.
• Fostering inclusivity by offering allergy-friendly menus, accessible seating, and culturally diverse branding.
• Leveraging social media for exposure, ensuring their dishes and ambiance are “Instagrammable.”

A report by Black Box Intelligence found that over one-third of diners at full-service restaurants prioritize service and experience over price, with this number rising to 45% for quick-service and self-ordering establishments. Compared to price, consumers care more about service attitude, food flavor, and overall consistency of the dining experience. ² As social media continues to influence dining trends, restaurants must focus on curating visually appealing and share-worthy experiences.

Compared to traditional advertising, this consumer-driven sharing model is more authentic and engaging.

As early as 2022, then-Google Senior Vice President (now Google CTO) Prabhakar Raghavan stated at the Fortune Brainstorm Tech conference that, according to Google’s internal research: “When young people look for a lunch spot, nearly 40% don’t use Google Maps or Search but instead turn to TikTok or Instagram.” ¹¹ This highlights how social media has long been a major force in the restaurant industry, even becoming a key marketing channel. By leveraging food photography, check-ins, and collaborations with influencers, brands can effectively attract younger consumers and expand their market reach.

5. The Rise of Global and Local Flavors

The global food industry is increasingly influenced by cultural exchange, driving consumer interest in both international cuisines and locally inspired dishes.

• Growing Popularity of International Flavors: Social media and streaming platforms have fueled the global popularity of Asian dramas, cooking shows, and food documentaries, significantly increasing awareness and interest in both traditional and modern Asian cuisine. According to the National Restaurant Association’s (NRA) 2025 Restaurant Trends Report, Korean, Vietnamese, and Filipino cuisines are gaining traction in the U.S. market. ⁸ While the report focuses on the U.S., the resurgence of international travel post-pandemic suggests that global dining preferences and trends remain highly relevant.
  
  
• Blending Local Ingredients with Cultural Influences: More restaurants are embracing the farm-to-table movement by partnering with local farms to ensure fresh ingredients and build long-term supply chains. This not only enhances the uniqueness of a restaurant by highlighting regional flavors and cultural authenticity but also strengthens customer connections through a sense of cultural identity. Additionally, this approach aligns with sustainability efforts, reducing carbon footprints and contributing to environmental responsibility.
  
  
• Innovation in the Beverage Market: The beverage industry continues to evolve, introducing non-alcoholic cocktails, fermented drinks like kombucha, and specialty coffees. Data shows that the non-alcoholic beverage market is expanding rapidly, with specialty drink sales projected to grow by 37% to 103%. Cold brew coffee remains a leading trend, followed closely by functional beverages enriched with health-boosting ingredients, catering to consumer demand for both flavor and wellness. ¹

The Future of Dining: Challenges and Opportunities

The restaurant industry in 2025 is shaped by rapid technological advancements, health-conscious dining trends, economic pressures, evolving consumer experiences, and the increasing influence of global cuisines. Businesses that adapt to these changes with agility and innovation will not only stay competitive but also position themselves for long-term growth and success.

[References]

¹ “Top Eight Foodservice Trends for 2025.” Middleby. https://www.middleby.com/learn/foodservice-trends-2025/.
² “2025 State of the Foodservice Industry.” Foodservice Equipment Reports, Inc. https://www.fermag.com/articles/2025-state-of-the-foodservice-industry/.
³ “2025 Foodservice Industry Trends: Shaping the Future of Dining.” Innovative Foodservice Group. https://www.the-ifg.com/news-blog/2025-foodservice-industry-trends-shaping-the-future-of-dining.
⁴ 〈超前部署疫後服務業缺工 甲電打進王品、饗賓 「做卡拉OK的」 如何變送餐機器人龍頭？〉今周刊。https://www.businesstoday.com.tw/article/category/183015/post/202401170022/.
⁵ 〈使用案例：新加坡嗨一碗 Hi Noodle (海底撈旗下品牌)〉Viscovery。https://viscovery.com/zh/use-case-hi-noodle-in-singapore/.
⁶ Restaurant Industry Poised for Growth in 2025: Industry Expected to Employ 15.9 Million People and Reach $1.5 Trillion in Sales. National Restaurant Association. https://restaurant.org/research-and-media/media/press-releases/restaurant-industry-poised-for-growth-in-2025-industry-expected-to-employ-15-9-million-people-and-r/.
⁷ “Top 5 Food Service Trends You Need to Watch in 2025.” Chef Middle East. https://www.chefmiddleeast.com/news-events/top-5-food-service-trends-you-need-to-watch-in-2025/.
⁸ “WHAT’S Hot 2025: CULINARY FORECAST.” National Restaurant Association. https://go.restaurant.org/rs/078-ZLA-461/images/What%27s%20Hot%202025.pdf?version=0.
⁹ “2025 Foodservice Industry Trends and Their Equipment Implications.” Foodservice Equipment & Supplies. https://fesmag.com/topics/trends/22439-2025-foodservice-industry-trends-and-their-equipment-implications.
¹⁰ “Simplifying our menu for a better Starbucks Experience.” Starbucks Corporation. https://stories.starbucks.ca/stories/2025/simplifying-our-menu-for-a-better-starbucks-experience/.
¹¹ “Brainstorm Tech 2022: Organizing The World’s Information.” Fortune Media IP Limited. https://fortune.com/videos/watch/Brainstorm-Tech-2022-Organizing-The-Worlds-Information/934585a6-7fb6-41a5-8ef3-e497f8ca2986.