Did you know that fullservice restaurant operators say they expect labor costs and recruiting and retaining employees to be their top challenge this year? Do you think limited-service restaurants expect the same? What about which state is expected to add the most restaurant jobs in the coming year? Or what position restaurants say is most difficult to fill?
As the restaurant industry faces rapid change and expectations to surpass $1.1 trillion in sales this year, the National Restaurant Association’s State of the Industry 2025 report offers key insights into these questions and the trends, challenges and opportunities shaping the future of dining. In this exclusive Q&A with Dr. Chad Moutray, vice president of research and knowledge at the National Restaurant Association, we dive into shifting consumer preferences, the increasing importance of off-premise dining, the role of emerging technologies and the evolving restaurant workforce. Discover how operators are balancing convenience with in-person experiences and how the industry is adapting to meet both consumer and operational demands in an increasingly competitive landscape.
How are consumer dining habits shifting in 2025, particularly in terms of delivery, takeout (off-premise) and on-premise preferences?
Half of restaurant operators report that off-premise sales now account for a larger share of their business than before the pandemic — an ongoing trend that shows no signs of slowing. Notably, 67% of Generation Z adults and 64% of millennials consider takeout an essential part of their lifestyle, with many increasing the frequency of their orders over the past year. Consumers are also voicing a strong demand for more off-premise dining options.
Despite this, the report highlights that many operators are prioritizing efforts to drive on-premise traffic in 2025, signaling a dual focus on convenience and in-person dining experiences.
What role are emerging technologies, such as AI or robotics, playing in shaping the future of restaurant operations?
Technology is becoming a critical driver of efficiency and customer experience in the restaurant industry. Eighty-three percent of operators believe their investments in technology provide a competitive advantage, while 69% say automation has improved productivity. These advancements are helping streamline kitchen operations, enhance the guest experience, and optimize staffing.
Looking ahead, most operators plan to integrate even more technology into their business. While AI is still in its early stages in many restaurant operations, there is growing interest in how it can improve everything from personalized marketing to back-of-house efficiencies.
What trends are driving growth in specific segments, like fast casual, fine dining, or the off-premise market?
Restaurants are finding innovative ways to blend loyalty programs with value-driven incentives to increase sales. In fact, 7 in 10 operators credit loyalty programs with driving traffic in 2024, and more than half plan to introduce new value-focused offerings in 2025. Limited-time promotions and combo meals were among the most frequently used strategies cited in the report.
While affordability remains a key factor — especially given inflationary pressures — dining out is not solely a price-driven decision. The report highlights that 82% of consumers see eating at a restaurant as a more convenient alternative to cooking at home, reinforcing the importance of both value and experience.
What are some key trends to watch when it comes to the restaurant workforce in the coming year?
Restaurant and foodservice employment is projected to grow by 200,000 in 2025, bringing the total workforce to 15.9 million by year’s end. The labor market has eased significantly compared to the extreme hiring challenges of the immediate post-pandemic years, making recruitment somewhat more manageable.
A rising participation rate, especially among teenagers and young adults, is expected to further bolster staffing efforts. Additionally, more operators are leveraging technology to streamline recruitment and employee management, improving efficiency in hiring and retention.
What, in your opinion, are the industry’s greatest challenges — and opportunities — looking ahead to this year and beyond?
Despite ongoing challenges, the restaurant industry continues to demonstrate remarkable resilience. Sales are projected to grow by 4.1% in 2025, reaching a record $1.5 trillion. Fundamentally, consumer demand for restaurant dining remains strong, reinforcing the industry’s solid foundation.
However, operators still face rising costs, supply chain complexities, and inflationary pressures. Navigating these headwinds while maintaining affordability and innovation will be key. That said, opportunities abound — whether through creative menu offerings, enhanced guest experiences, or strategic use of technology. The industry’s ability to adapt and evolve will remain its greatest strength.
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