2025 Outlook: Experts Weigh In on Restaurant Trends and Challenges, Part One

Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2025. To read the second part, click here. For the third part, click here. 

Steady Online Ordering Brings Food Waste, Donations to the Forefront of Priorities 

Ordering food online increases restaurant sales, but it also can potentially increase wasted food if proactive measures aren’t taken – for both the business and consumers at home. When consumers order more food online, it’s clearly good for business – but it can also make it harder for businesses to manage inventory. At the same time, it can result in consumers creating more waste if they order more than they can eat. In 2025, restaurants need to have a plan in place that ensures they are effectively managing inventory and redirecting unused, still edible food to donations. Not only will this avoid wasting resources, it also will ensure they avoid a potential spike in wasted food – and ultimately their costs – due to the increased demand from online orders. 
 

Widespread Adoption of Technology Solutions in Food Service

In 2025, the food service industry will increasingly leverage technology for waste tracking and diversion. We may see the rise of advanced AI-driven platforms that not only analyze waste generation, but also optimize collection routes, monitor compliance with regulations, and provide real-time insights into waste management. 
 

Growing Momentum for Plant-Based and Local Sourcing

The movement towards plant-based foods and locally sourced ingredients will continue to gain momentum in 2025, reducing overall food waste through better inventory management and demand forecasting. This shift will likely be complemented by an increased focus on reducing waste generated from animal products. 

Increasing Regulatory Pressures on the Food Service Industry

I expect more states and municipalities to implement stronger organics recycling laws in 2025, mandating food waste diversion for commercial food service operators. These regulations will likely expand beyond predominantly large entities to include smaller establishments, driving widespread adoption of food waste diversion practices across the industry. 

– Frenchie Audette, VP of Food Service at Divert

In 2024, the restaurant industry continued to adjust to changes sparked by 2020. With so many people leaving the industry, restaurants stepped up—raising wages, creating new opportunities, and doubling down on the employee experience. These moves helped push employment levels beyond previous peaks, showing how resilient the restaurant business is. Still, keeping a steady team remains the top challenge, highlighting the need for ongoing innovation in restaurant workforce management.

After a challenging 2024, it’s promising to see restaurant operators looking ahead to 2025 with optimism.

After a challenging 2024, it’s promising to see restaurant operators looking ahead to 2025 with optimism. Much of that confidence comes from focusing on stronger employee benefits—like mental health support—and rising wages. At the same time, technology is poised to play an even bigger role in the coming year. With only half of restaurants using advanced tools like scheduling software and performance tracking, there is a clear opportunity for growth. Embracing these innovations will be essential to meeting the evolving needs of the industry and its workforce.

 – Jordan Boesch, CEO at 7shifts

For 2025, I believe the top trend will be striking a healthy balance in food choices. Consumers are gravitating towards options that support wellness but aren't overly restrictive. It’s similar to the rise in non-alcoholic beverages—people still want the taste of a great beer but may prefer one with low or no alcohol. It’s all about finding that sweet spot where healthy choices feel satisfying and enjoyable, rather than like a compromise.

– Salad House CEO Joey Cioffi

In 2025, restaurant chains will increase their usage of connected equipment to be more responsive, resilient, and ready to meet evolving customer expectations in a data-first, efficiency-focused world.

This shift won't just be about adding new technologies, such as the Internet of Things (IoT), but reimagining the way they work, with a focus on driving smarter, data-driven decisions at every level. At the same time, advances in IoT-enabled cooking, refrigeration, and HVAC systems will provide more real-time automation and actionable insights that go far beyond efficiency gains. These systems will monitor equipment, staff usage, and environmental conditions to not only ensure high up-time and food consistency but to further minimize waste and energy consumption.

Refrigeration systems, for instance, will use integrated sensors to track and respond to temperature fluctuations, mitigating spoilage risks proactively. Similarly, AI-driven thermostats will optimize indoor climates, enhancing the comfort of both staff and customers while balancing energy usage. The intelligence built into these newer technologies will become part of a broader strategy to predict, adjust, and innovate based on real-time data and enhance the customer experience.

– Jay Fiske, President, Powerhouse Dynamics

Beyond the App: Loyalty and Data-Driven Personalization

• In 2025, loyalty and digital innovation are set to shape the QSR industry more than ever. Simply offering an app or website is no longer enough to meet evolving consumer expectations. Today, loyalty is evolving beyond traditional email campaigns into a fully integrated, 360-degree consumer strategy that aims to recognize and engage customers at every interaction with the brand.

Today, loyalty is evolving beyond traditional email campaigns into a fully integrated, 360-degree consumer strategy that aims to recognize and engage customers at every interaction with the brand.

• For instance, at GoTo Foods, we’re taking a “four-wall” strategic approach, where our brands offer personalized messages and tailored experiences for customers within physical locations, creating a cohesive, omnichannel connection that extends beyond digital touchpoints. A great example of this is McAlister’s Club MCA – designed to elevate the guest experience for loyalty members. After beta testing Club MCA in select restaurants, the brand saw a notable increase in OSAT. As a result, we’re looking to implement similar loyalty programs across our portfolio of brands.
• At the heart of this industry transformation is the strategic value of data. As loyalty memberships surge, brands are capitalizing on the insights gained from vast consumer interactions. These insights help enable targeted, relevant messaging that speaks directly to the individual.
• As more brands pivot towards this model, QSRs are racing to meet the new standard of consumer engagement, where loyalty is now a fundamental driver of strategic growth.

– Jim Holthouser, Chief Executive Officer of GoTo Foods®, the parent company of Auntie Anne’s®, Carvel®, Cinnabon®, Jamba®, McAlister’s Deli®, Moe’s Southwest Grill®, and Schlotzsky’s®

On the previous year’s trends of rising labor and operating costs:

The foodservice industry has traditionally operated with low margins, and technology is proving to be a key driver in enhancing efficiency and sustaining profitability. We've already seen how technology has transformed front-of-house operations with the rise of apps like UberEats and DoorDash, as well as advanced point-of-sale systems. Now, this revolution is extending to the back-of-house.

Technology, like e-commerce platforms, is changing the way distributors and restaurants interact. In the past, orders were processed manually—through phone calls, texts, or voicemails. Now, the process is fully digitized. For example, a restaurant can phone in an order, and it’s automatically integrated into the distributor’s ERP through our platform—eliminating the need for manual data entry. This speeds up order processing and streamlines operations.

E-commerce solutions can handle the entire process from start to finish. Restaurants can place orders, track them through fulfillment, and even pay distributors directly through the system, with options for automated payments. This frees up valuable labor resources to focus on what really matters—serving customers at the restaurant level, and focusing on customer service and business growth at the distributor level.

On the challenges facing the industry in 2025: 

The two biggest challenges are deciding to go digital and successfully adopting digital tools. Many distributor teams may face a learning curve as they adjust to new systems, which often requires a change in behavior. Early adopters tend to succeed quickly, while others may fall behind. Interestingly, the challenge typically doesn’t lie with restaurants—most owners and kitchen staff are already comfortable with e-commerce from their personal lives, as many regularly order from platforms like Amazon.

To remain competitive and retain customers, distributors need to invest in modern and efficient e-commerce platforms. Those who don't make this investment risk falling behind as the industry continues to evolve.

On the pressing labor shortage and strategies to reduce its impacts in 2025: 

Foodservice has always been about relationships and connections. As the industry has evolved, the need for technology to streamline mundane tasks and busywork has become increasingly clear. For foodservice distributors, attracting and retaining talent requires enabling employees to focus on what they do best: selling. This means eliminating burdensome tasks such as order entry, verification, and check tracking that can drain time and energy.

As the industry has evolved, the need for technology to streamline mundane tasks and busywork has become increasingly clear.

E-commerce addresses this challenge by providing staff with valuable time back to spend with family, meet with customers, and pursue new business opportunities. Instead of worrying about whether an order has been submitted or chasing down paperwork, employees can concentrate on actively selling new products and enhancing customer relationships.

Additionally, implementing flexible scheduling, competitive wages, and comprehensive benefits can further enhance the employee experience, making roles in foodservice more attractive. By fostering a positive workplace culture and utilizing technology to reduce operational burdens, foodservice distributors can not only attract talent but also cultivate long-term retention, ultimately leading to a more engaged and productive workforce.

On the challenges sustainability presented in 2024, and how to balance sustainable sourcing and practices with cost concerns in the new year: 

Several key challenges arise when it comes to sourcing sustainable ingredients. First and foremost, there often aren’t enough sustainable options available, and the production costs can be significantly higher. Additionally, supply chain disruptions can complicate sourcing efforts. Navigating the various certifications related to sustainability can also be daunting, and many consumers remain skeptical about sustainability claims. Thus, finding the right balance between maintaining high quality and keeping prices reasonable is crucial.

To address these challenges, businesses can establish long-term partnerships with sustainable suppliers and explore local sourcing options to help reduce costs. Educating consumers about the benefits of sustainable ingredients can also foster understanding around pricing, making them more willing to pay a premium. Furthermore, leveraging technology for efficient inventory management and gradually increasing sustainable offerings can assist in balancing sustainability goals with cost management.

By taking these steps, the food industry can better navigate the challenges of sourcing sustainable ingredients while meeting consumer demands and maintaining profitability in the new year.

On landmark AI and automation adoption in 2024, and what emerging technologies and use cases to watch in 2025: 

We are already witnessing significant progress in this area. Last year, Cut+Dry launched Yes, Chef, the world’s first AI tool specifically designed for foodservice distributors in the U.S. 

The platform was specifically designed to utilize AI for a range of that address top-of-the-funnel and customer support challenges. While built on cutting-edge technology, this is a simple solution for ensuring that every sales rep is equipped to effectively market to restaurant operators, with digital prospecting and proposal tools to help distributors expand their book of business. It leverages data-driven AI product recommendations to boost sales, provides in-depth insights into customer behavior and order trends, and analyzes product catalogs. Additionally, it identifies underperforming SKUs, offering actionable insights to help move inventory and increase sales. The marketing solutions integrated into Yes, Chef also enable distributors to effectively promote excess products, create targeted sales and promotions, and enhance overall marketing efforts.

AI and automation represent a new frontier for technology in the foodservice industry, promising to revolutionize ordering, inventory management, and customer service in unprecedented ways.

In addition, using an AI Order Desk further streamlines the ordering process by capturing orders from multiple sources, including voicemail, text, email, or e-fax. It automatically extracts key order details—such as account information, location, and the orderer's name—regardless of how the order is submitted. The system is designed to handle misspellings, accents, and foreign languages with ease, ensuring accurate order verification. Finally, it seamlessly pushes verified orders into your ERP system, reducing manual errors and saving valuable time for staff.

Given the rapid pace of AI development, we can only expect even more advanced capabilities in 2025. AI and automation represent a new frontier for technology in the foodservice industry, promising to revolutionize ordering, inventory management, and customer service in unprecedented ways.

With the Food Safety Modernization Act (FSMA) taking effect in 2026, what industry needs to know in 2025:

The first step is to standardize your data. You need structured and standardized data to effectively trace a product from start to finish in the food supply chain. However, the current state of food supply chain data is far from ideal; it is often unstructured, inconsistent, and does not flow smoothly from one point to another. 

Standardizing data is a meticulous process requiring commitment and collaboration across your organization. This is where e-commerce solutions can help, by. simplifying the data standardization process for partners so they can achieve compliance efficiently.

Once your data is standardized, technology can facilitate real-time tracking, integrating information up and down the supply chain and creating detailed listings with traceability data, such as batch numbers and expiration dates. Additionally, it can automate reporting, making compliance with the new FSMA rules significantly easier.

By taking these proactive steps in 2025, foodservice operators can ensure they are well-prepared for the upcoming FSMA amendments and enhance their operational efficiency.

– Mani Kulasooriya, CEO/Co-Founder at Cut+Dry

Consumers Embracing Global Flavors

• The QSR industry is evolving fast, driven by a growing appetite for diverse, globally inspired flavors. Customers are stepping away from traditional fast food and craving bold, authentic experiences that take them on a culinary journey. This isn’t just a passing trend, it’s a cultural shift fueled by a desire for variety, real flavors, and a deeper connection to the food we enjoy.

Brands that focus on sourcing great ingredients and teaming up with culinary experts to create these bold dishes will be set up for success in a fast-moving market.

• For QSR brands, offering globally inspired menu items isn’t just a fun addition anymore, it’s a must. Consumers are hungry for new and exciting flavors, and the brands that can deliver these authentic tastes will stay ahead of the curve. Limited-time offers featuring unique, exciting flavors, not only spark excitement, but also create a sense of urgency, getting customers to try something fresh before it’s gone. Brands that focus on sourcing great ingredients and teaming up with culinary experts to create these bold dishes will be set up for success in a fast-moving market.

– Gregg Majewski, Founder & CEO of Craveworthy Brands

Balancing AI Hype with Practical Application

• In 2025, the QSR industry will continue to navigate the challenge of balancing the allure of artificial intelligence with grounded, practical applications.
• As AI rapidly evolves, QSRs are inundated with promises of AI-driven breakthroughs. However, many QSR brands are recognizing that the key to success lies in discerning hype from reality.
• AI can bring substantial benefits when thoughtfully integrated into operations, such as improving customer experience, streamlining order processes, and optimizing supply chain logistics. Rather than jumping into ambitious projects, forward-thinking brands are focusing on using AI where it has immediate and clear benefits, ensuring a sustainable and scalable approach to technology adoption.
• Brands that take this measured strategy approach will be able to effectively leverage AI’s transformative potential while avoiding the pitfalls of unrealistic expectations and unpreparedness in an increasingly AI-driven landscape.

– Milton Molina, SVP of Store Technology at Marco’s Pizza

All-Day Dining and Curated Experiences Shaping Guest-Centric Restaurants

• In 2025, restaurants are set to redefine their offerings with a focus on expanded dayparts, giving guests more choices regardless of the hour. This means breakfast items available in the evening, lunch in the early morning, and even after-hours dining events that extend the reach of a traditional restaurant. By meeting guests’ growing demand for flexible dining times, restaurants can become an all-occasion choice for consumers, enhancing brand loyalty and accessibility.

By meeting guests’ growing demand for flexible dining times, restaurants can become an all-occasion choice for consumers, enhancing brand loyalty and accessibility.

• Restaurants are also focusing on ingredient transparency and wellness without sacrificing flavor, appealing to health-minded guests while ensuring indulgence remains central. Meanwhile, technology enhances these efforts, streamlining operations and creating seamless interactions without losing the human element. The result is a brand experience that feels curated to individual guest needs, blending convenience, taste, and tech-driven personalization to secure their place in the modern restaurant landscape.

– Mike Sebazco, President of Famous Toastery

Transformation into Experiential and  Immersive Destinations, Catering to the Prosumer

• As we look ahead to 2025, QSRs are evolving into immersive, experience-driven destinations that appeal to the modern ‘prosumer’ – a quality-conscious, highly engaged consumer who seeks more than just convenience. Inspired by the ‘fourth wave’ in coffee culture, where quality, sustainability, and transparency are paramount, prosumers expect exceptional, customizable products and spaces that provide memorable, interactive experiences. This new era of experiential QSR design includes architectural innovation and unique design elements that make each location a true destination.
• As inflation cools, QSR brands that strike the right balance between price, quality, and immersive experiences will gain a competitive edge, capturing the loyalty of these consumers and defining the future of QSR.

– Scott Snyder, CEO of Bad Ass Coffee of Hawaii

Value will always be important to consumers –– as we head into the new year, it will become less of a buzzword and more of a defining and influencing factor in where guests chose to dine. 2025 will be about going beyond providing base-line value, leaning more into how that value is passed on to the customer. It’s no longer about being the cheapest; it’s about offering a meaningful experience at a fair price.

2025 will be about going beyond providing base-line value, leaning more into how that value is passed on to the customer. It’s no longer about being the cheapest; it’s about offering a meaningful experience at a fair price.

In the last several years, the restaurant industry has undergone colossal changes, driven predominantly by the rising demand for delivery. Consumers are placing a higher value on convenience, opting for meals that can be delivered to their doorsteps –– and restaurants worldwide are adapting their service models to meet the demand.

Through our work with international restaurant brands, we’re noticing a common shift to online food delivery. The ability to manage multiple platforms––all while maintaining daily operations––is a recurring challenge our customers are finding. Continuously rising inflation and labor shortages mean that automation will be more important than ever heading into 2025. By automating the order flow process, Deliverect is helping restaurants achieve 40 percent improvement in delivery time, ultimately translating to increased sales and customer loyalty.

Deliverect’s goal has always been to connect the restaurant with their customers –– whether via third party delivery apps, reservation platforms, or marketing channels. Our products are continuously evolving to enable large restaurant operators to tackle these types of challenges  so that they can spend less time understanding systems and more time providing exceptional experience to their guests. 

As restaurants lean into business models that prioritize delivery, partnerships with third-party delivery platforms have become critical. What started as a means of survival during the pandemic has proven necessary in generating positive outcomes for customers and businesses as we move into 2025. This shift in business model has already expanded into the grocery and QSR sector, and we anticipate even more restaurants and retailers to offer convenient delivery or curb-side pickup options in the coming years, whether via third party platforms or first party apps.

The future of the industry lies in tech-enabled growth, cross-industry partnerships, and franchise expansion. By leveraging technology, businesses can not only scale efficiently but also adapt to the growing demand for convenience, personalization, and seamless service in both global and local markets.

By leveraging technology, businesses can not only scale efficiently but also adapt to the growing demand for convenience, personalization, and seamless service in both global and local markets.

Coming out of Deliverect’s bi-annual customer conversations – with international brands like Little Caesars, Papa Johns, Popeyes, and Pret a Manger – we’ve anticipating several trends to shape the industry in 2025:

Increased expectations for loyalty & perks: Consumers are looking for (and expecting) loyalty programs that go beyond point accumulation—they want discounts, perks, and exciting menu releases.

Full-service → QSR: Budgets may be tightening but expectations are still high and consumers are demanding the best of both worlds—speed and a premium experience.

Return to office ordering: Restaurants are seeing a shift in demand, with increased orders for office catering and lunch pickups. Customers like Joe & The Juice see large catering orders and white-label delivery solutions as the future—bigger orders, higher average order value, and more profits.

As restaurant operators prepare for customer needs of the future, a seamless experience across all touchpoints—whether it's through apps, kiosks, or in-store channels—is crucial. Omnichannel strategies ensure that no matter how a customer interacts with the brand, the experience remains cohesive and personalized.

As the restaurant industry evolves, we’re seeing a clear shift from adopting isolated tech solutions to streamlining operations through consolidated ecosystems. The focus is now on integrating technology across platforms for long-term efficiency and profitability, rather than constantly adding new, standalone tools.

– Zhong Xu, Deliverect CEO