Despite the threat of tariffs, and rising food and labor costs
remaining top of mind, restaurant operators are focused on increasing sales -- and thus marketing spend -- through the end of the year, per a new Restaurant365 report.
The 2025 State of the
Restaurant Industry Midyear Report from the restaurant management platform represented over 5,000 locations whose operators shared the “top challenges and opportunities alongside their
priorities” for the rest of 2025.
The study found that sales were the number one priority for 52% of respondents for 2025, with a full 40% planning to increase budgets for
“promotions and marketing,” specifically geared toward off-premises dining. While the pandemic may be over, over one third (35%) said they have still seen even more takeout and
delivery orders over recent years, with 33% also reporting a decrease in dine-in visits.
Unsurprisingly, food cost increases were reported by 91% of respondents, while only 82% had expected
the increases last year. As a result, 56% of respondents said they planned to increase menu prices, with 18% saying they “doubled down on inventory and waste tracking.”
Along with
the surge in food costs comes rising staff expenses, with almost 90% of respondents saying they continue to see increases, and 30% stating that they have increased employee pay. As a result, 65% said
they have responded by operating below full capacity, and 19% now have limited operating hours to help offset costs.
And while tariffs may not have affected operators yet, the threat has 78%
of respondents expecting to be impacted by higher costs at some point this year.
Looking forward to the rest of 2025, those surveyed planned to spend more on enhanced employee training. Thirty
percent increased spending on training in the first half of the year, but 40% of participants list it now as a top priority, “followed by 27% working to offer employees better work-life balance,
and 19% setting aside resources to increase pay.”
As far as expansion goes, the majority of respondents (58%) do not plan on opening any additional locations this year, with only 19%
planning one new location, and just 20% who said they're working towards opening two to five more locations before the end of 2025.