• by Teresa Buyikian , February 13, 2025

It may be a new year, but many restaurants will still struggle with similar issues as in 2024, according to the National Restaurant Association’s recently published 2025 State of the Restaurant Industry Report.

The restaurant industry as a whole is expected to reach $1.5 trillion in sales (up from $1.1 trillion in 2024), as well as add more than 200,000 new jobs, which will bring the total U.S. restaurant and foodservice employees to 15.9 million (an increase from 15.7 million in 2024). But despite the positive predictions, many operators reported "new year, similar concerns," as they still grapple with both increasing labor and food costs, as well as with hiring and retaining new employees. Both full service and limited-service operators reported similar issues.

Yet in light of the challenges, restaurant operators are still “cautiously optimistic” about 2025. More than eight in 10 operators expect their 2025 sales to be either higher or about the same as 2024.

And some of those sales will hopefully come from consumers who have reported “pent-up” demand for restaurant meals. A majority reported they would “use restaurants more frequently if they had the money,” a desire that carried through to dining at table service restaurants (81%) and fast food, snack places, delis and coffee shops (76 %). The craving for restaurant meals also applies to delivery, with 82% also wishing to have the same meals brought to them at home.

Delivery is expected to remain a key driver in 2025, with 82% of consumers, including 89% of millennials, “expressing a strong interest in ordering delivery more often if their finances allow.” Yet the high price of delivery may be driving more consumer toward picking up their meals; over 50% of consumers, including 67% of Gen Z and 64% of millennials, consider take-out “essential.”

And although consumers want more restaurant meals either in-store or at home, 87% percent of casual dining operators are still counting on more foot traffic in 2025. 

“The fundamentals of the restaurant industry are strong, and operators are optimistic about the year ahead," said Michelle Korsmo, president and CEO of the National Restaurant Association in the release. "Industry sales are expected grow more than four percent this year, and employment should reach nearly 16 million jobs. That growth will come from restaurant operators finding the balance of value and experience for consumers, and innovating breakthrough efficiency in their operations."

The evolution of the term “value” is expected this year, as it will “extend beyond price to include a mix of experience, hospitality and affordability,” per the report.

One thing customers and operators have both embraced across the board are loyalty programs, with 70% of operators citing that they “helped boost customer traffic.” From the consumer point of view,  “61% of delivery customers, 54% of quick service patrons, and 41% of table service diners indicate that being part of a rewards program influences their dining choices.”