2025 Trends: What Hospitality Businesses Should be Preparing For

For more than 100 years, Society Insurance has been providing coverage to hospitality businesses. We see firsthand what restaurants should be paying attention to as new trends and legislation arise. To commemorate the start of 2025, we compiled four trends that could dominate conversations surrounding hospitality businesses longevity this year.

The Future of Nuclear Verdicts

Society Insurance expects more of a discussion around nuclear verdicts and, ideally, an elimination of nuclear verdicts in favor of fair and just verdicts for restaurants. When juries award disproportionately high amounts in lawsuits, often from cases involving accidents, liquor liability, food safety issues, or employee disputes, these multimillion-dollar awards can be a death sentence for restaurants. Even if a restaurant doesn't face a verdict, the prevalence of such cases can drive up insurance premiums industry-wide, increasing operating costs.

The need for regulation to curb these excessive awards is paramount. Caring about nuclear verdicts helps restaurants protect their financial stability, brand integrity, and long-term viability in a competitive industry.

86ing Gas Appliances – Or Not?

In a bid to improve indoor air quality and cut climate-warming emissions, more and more cities are banning gas appliances in commercial cooking and residential homes. Though more than 75 percent of restaurants still rely on gas cooking, commercial buildings are the largest sources of greenhouse gases in many cities. 

In 2024, Boulder became the largest city in Colorado to mandate gas-free buildings in all new builds starting in 2025 and in 2027, New York will prohibit new gas connections in most startings. Meanwhile, Berkeley, Colo. repealed the city’s first-in-the-nation ban on gas hookups in summer 2024, the result of a $300,000 campaign.

More Storm Preparation

Storm-related devastation was all too familiar in 2025. Hurricane Helene caused $250 billion in damages to the southeastern United States, concentrated in Florida, Georgia, and North Carolina with more than 100 deaths, while Hurricane Milton caused $50 billion in damages and claimed the lives of 14 people. Researchers suggest that the most damaging U.S. hurricanes are three times more frequent than 100 years ago, and that the proportion of major hurricanes (Category 3 or above) in the Atlantic Ocean has doubled since 1980.

As catastrophic storms are happening more and more, more businesses are likely to prioritize preventive measures against storms, like using natural landscaping techniques around a business, staying on top of their gutters and building drainage, installing water detection devices and regularly trimming tree branches. 

Additionally, businesses will have to navigate increased property insurance premiums due to these more frequent and severe weather patterns

Liquor Liability Remains Significant Area of Focus

The discussion around liquor liability continues. Liquor liability insurance can be increasingly expensive and hard to secure, though it’s often essential for mitigating risks, especially in those states with DRAM laws. Society Insurance recommends a focus on comprehensive training, legal compliance, and proactive engagement with insurance experts to safeguard operations and staff. 

Though these important topics will be top-of-mind throughout 2025, the hospitality industry is so far from doom-and-gloom. For the first time in history, sales are forecast to top $1 trillion annually for restaurants and it’s estimated the industry added 200,000 jobs in 2024. While challenges remain, it’s truly a historic and exciting time for the hospitality industry.

This is only a general description of coverages and is not a statement of contract. All coverages and limits are subject to the terms, definitions, exclusions and conditions in the policy. This information does not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding available coverages. This information is provided as a convenience for informational purposes only. It is provided to assist you in recognizing potential unsafe work problems or conditions and not to establish compliance with any law, rule or regulation. This information does not constitute legal or professional advice. For a legal opinion, please seek legal counsel from a qualified attorney.