The restaurant industry is expected to achieve $1.5 trillion in sales in 2025, with the addition of over 200,000 new jobs, bringing total employment to nearly 16 million, according to the National Restaurant Association’s 2025 State of the Industry report.
This growth follows a difficult year marked by rising costs, labor shortages and declining customer traffic. Many operators still carry pandemic-related debt, and inflation continues to impact expenses, with food and labor costs rising over 30% since 2019. Despite these challenges, optimism remains high, with 82% of restaurant operators anticipating stable or increased sales in 2025. However, competition is intensifying, particularly in the quick-service and full-service segments.
Consumer behavior is shifting, with a strong focus on value and loyalty programs. Many restaurants are introducing new promotions and discounts to attract cost-conscious diners, particularly in the quick-service and fast-casual segments. Loyalty programs are increasingly influencing customer choices, particularly in delivery.
Additionally, in-person dining is regaining priority, with full-service and even quick-service restaurants emphasizing the importance of on-premises experiences. However, economic pressures continue to weigh on consumers, with many struggling to maintain their lifestyles due to inflation and shrinking savings. While inflation is expected to ease slightly, economic uncertainty may still affect restaurant spending.
Labor challenges are improving but remain a concern. Although workforce availability has stabilized, hiring remains difficult, especially for back-of-house roles in full-service restaurants and management positions in quick-service establishments. While job growth is expected in the long term, potential economic downturns could force some operators to reduce staffing.
Meanwhile, restaurants are increasing technology investments to enhance productivity and customer experiences. Key areas of focus include digital marketing, cybersecurity, workforce management and AI integration. Many brands are adopting contactless ordering and payment systems, self-service kiosks and smartphone apps to streamline operations and improve efficiency.
Read the full National Restaurant Association’s 2025 State of the Industry report here.
For more insights and expert advice on how to choose a restaurant franchise, visit 1851 Franchise and explore our Top Restaurant Franchises for 2025 issue.