2025: The Year of Contradictions in the Restaurant Industry

2025 is as nuanced a year as brands have ever seen with consumers behaving and setting expectations in opposing ways. Brands that will thrive are those who embrace these contradictions as opportunities. With consumer behaviors evolving at a rapid pace, brands looking to build momentum for the rest of the year must take advantage of these insights. This year has been defined by paradoxes—where diners crave both digital convenience and personal connection, indulgence and thrift, and personalization and privacy. The restaurants that thrive will be those that embrace these contradictions as opportunities.

At the heart of this balancing act is the evolving consumer mindset—seeking balance and growth in a rapidly changing world, prioritizing both physical and mental well-being, financial security and meaningful connections. For restaurants, success lies in recognizing these evolving preferences and strategically adapting operations to meet them.

Connection and Autonomy

Consumers live in a world where digital connection is both an escape and an expectation. With social media shaping trends, culture and commerce around the clock, younger generations are increasingly using these platforms to discover new dining experiences. A growing majority of Gen Z now turns to TikTok as their go-to search tool over traditional search engines. This shift highlights the growing reliance on social media for information, making it crucial for restaurants to engage with this audience where they are. However, as digital habits shift, so does consumer trust. Younger generations are becoming more discerning, placing greater trust in organic content from peers over traditional influencer promotions, making authenticity the priority. For restaurants, this means that engaging customers through organic content, such as authentic reviews or behind-the-scenes posts, may resonate more than traditional influencer-driven campaigns alone.

Now is the time for restaurant brands to ask: Are we merging human insight with technology to craft meaningful customer journeys?

At the same time, many are feeling the strain of digital overload. Two-thirds of Gen Z and Millennials admit to spending more time online than they’d like, driving a desire for balance between online and in-person connections. As a result, experiential marketing continues to gain traction, with 71 percent of 13- to 39-year-olds seeking immersive brand activations that offer real-world engagement. For restaurants, this presents an opportunity to create in-person experiences that satisfy the craving for authenticity and connection.

A compelling example of this is Fishwife, a tinned seafood brand that has leveraged pop-ups to create joy, foster community, and drive digital amplification—while also facilitating product trial and purchases. Their activations have delivered impressive results, including over $90,000 in revenue, hundreds of user-generated content, thousands of attendees, and millions of impressions. Fishwife proves that the right in-person activation can have an impact far beyond the event itself, blending online and offline engagement to drive meaningful brand momentum.

Progress and Preservation

As AI advances, so do consumer expectations for hyper-personalized, seamless and dynamic brand interactions. At the same time, consumers are growing cautious of AI, demanding transparency, ethical practices, and greater control over their data. While many appreciate AI’s potential to improve experiences, they’re not willing to sacrifice privacy in the process. This demonstrates that technology alone isn't enough—restaurants must pair AI’s efficiency with human insight to build trust and drive meaningful experiences.

Benihana exemplifies this approach. What started as an initiative to celebrate customers’ birthdays has transformed into a sophisticated program that personalizes content based on the individual’s dining habits, visit frequency, and menu preferences. By combining AI-driven automation with human-centered strategy, Benihana delivers an experience that feels thoughtful, engaging, and rewarding to its guests. This fusion of technology and emotional intelligence ensures customers feel valued rather than just targeted.

Thrifty Habits and Willingness to Splurge

While price-consciousness is on the rise, with 74 percent of consumers opting for less expensive options, the willingness to splurge is far from gone. Consumers are increasingly prioritizing value, but they are also spending on experiences that enhance their well-being. Eighty percent of people admit to splurging at least once a month to boost their mood. This trend is especially evident in the growing “little treat” culture, where people indulge in small snacks as a form of self-care or reward. Younger consumers are driving this trend, with 74 percent of U.S. consumers under 35 snacking multiple times a day. This presents restaurants with an opportunity to offer smaller, snack-sized portions that satisfy emotional needs while remaining budget friendly.

Baskin-Robbins' introduction of Boxed Novelty Bars provides just the affordable indulgence, aligning with the "little treat" culture where consumers seek small, mood-boosting rewards. These pre-packaged ice cream bars offer a convenient way for customers to enjoy premium flavors without committing to larger portions or having to leave the comfort of home, satisfying the desire for a modest splurge right where they are. This approach highlights a key insight: even budget-conscious consumers are willing to spend on small luxuries that bring them joy.

Instant Gratification and Sustainability

Consumers today are deeply immersed in a culture of instant gratification, where anything that disrupts immediacy can feel like an inconvenience. Technology plays a key role in this, as smartphones serve as an endless stream of information, entertainment and social connection.

Balancing speed with sustainability, personalization with privacy, and affordability with indulgence will be key to meeting the evolving expectations of today’s diners. 

From mobile wallets and contactless payments to QR codes and autonomous delivery systems, consumers expect their interactions with brands to be effortless. This "Amazon effect" has set high standards for fast, frictionless purchasing experiences. One example of this is Starbucks' mobile app, which allows customers to order and pay seamlessly from their phones, bypassing long lines and creating a more convenient, efficient experience.

However, this desire for instant gratification doesn’t negate the importance of long-term sustainability. Younger generations are leading the charge in demanding environmentally conscious practices, with 73 percent of consumers saying they’re willing to change their consumption habits to reduce environmental impact. For restaurants, adopting sustainability is no longer an option – it’s an expectation.  Restaurants that successfully integrate sustainability into their convenience-driven offerings—such as using eco-friendly packaging or ethical sourcing—will resonate most with today’s diners.

Turning Insights Into Action: Restaurants Can Thrive in 2025

To navigate 2025 successfully, restaurants must understand and embrace the contradictions shaping consumer behavior. Balancing speed with sustainability, personalization with privacy, and affordability with indulgence will be key to meeting the evolving expectations of today’s diners. 

Now is the time for restaurant brands to ask: Are we merging human insight with technology to craft meaningful customer journeys? Are we maximizing both digital and in-person experiences? Are we capitalizing on the “little treat” trend while maintaining affordability? Brands that actively align with these consumer behaviors will not only sustain momentum in 2025, but drive lasting success.