On a recent episode of QSR Uncut, Jim Balis, partner and head of strategic operations at  CapitalSpring, returned to discuss the state of the restaurant industry in 2025. With over 2,000 restaurants in its portfolio, CapitalSpring has a front-row seat to evolving trends. 

Balis points to a noticeable uptick in transaction activity, with several brands preparing for market moves in early 2025. While some companies are capitalizing on strong growth trajectories, others are reevaluating ownership after long holding periods. At the same time, closures remain a key part of the conversation. Many operators are continuing to shut down underperforming units as a way to strengthen their overall portfolios and focus on long-term profitability.

Technology is also front and center. Operators are increasingly moving toward consolidated tech platforms that simplify operations and provide deeper insights by integrating sales, labor and customer data. AI-powered tools are becoming more practical, particularly in areas like inventory management and scheduling, where they can improve forecasting and reduce waste.

Value remains a critical theme across the industry. Restaurants are exploring new pricing strategies, offering bundled deals and emphasizing in-store experience as a way to compete with rising grocery prices and shifting consumer expectations. Traditional loyalty programs are also being reevaluated, with some brands turning to digital wallets and non-traditional partnerships to drive customer engagement.

While closures will likely continue, Balis remains optimistic about growth. Strong brands with clear value propositions and operational discipline are expected to expand, often by taking over vacated restaurant spaces. For operators, the year ahead will require sharp focus, adaptability and smart investments in technology and experience.

Listen to the episode here. 

For more information about CapitalSpring, please visit www.capitalspring.com.