Restaurants Bet Big on Expansion Despite Obstacles

Restaurant brands are accelerating expansion plans despite economic challenges, according to a collaborative report between Crunchtime and Technomic that indicates operators are poised to open 20 percent more locations in the next two years compared to the previous two, even as 75 percent acknowledge that expansion has never more difficult.

“It’s our observation working with 850+ brands in 150,000+ locations, that restaurants are optimistic by nature,” said Cassandra Clark VP, Marketing at Crunchtime. “Even when faced with uncertainty and challenging times, especially over the last five-plus years, restaurant brands have continued to move forward and persevere. As a result, brands are aiming to grow more predictably and profitably even amid uncertainty.”

 Brands that are agile, tech-enabled, and focused on operational consistency are leading the charge.

The study did not directly compare newer brands to legacy brands,however, the findings did show that brands of all types and sizes are planning for growth, Clark told Modern Restaurant Management (MRM) magazine. 

“Whether quick-service, fast casual, or full-service, the common factor is not size or format but the ability to scale effectively. Brands that are agile, tech-enabled, and focused on operational consistency are leading the charge. In that sense, both newer and more established brands are pursuing expansion if they have the right systems in place.”

To implement expansion plans successfully, brands must invest in the systems and infrastructure that make growth repeatable, Clark offered. This includes:

• Strengthening operational processes such as labor management and inventory control

• Ensuring real-time visibility into store performance across all locations 

• Establishing consistent training and development programs

• Aligning teams around clear standards and expectations

• Building strong, scalable vendor relationships that support multi-unit needs

“Without these elements in place, even the most promising growth plans can stall or fail,” Clark said. “Technology is a growth enabler when it comes to supporting restaurant expansion efforts. Restaurant operators are focusing their tech investments on task management, food safety, and inventory control, with around 60 percent planning or having invested in these areas.”

One of the more surprising findings is the gap between technology usage and outcomes, Clark added, suggesting that many operators are either not using the tools effectively or that the tools themselves are not delivering actionable insights. Another unexpected insight is how few operators have full visibility into daily task execution, even though nearly half say better execution would lead directly to higher profitability.

Labor management and employee training follow closely, showing the ongoing emphasis on workforce optimization, Clark continued. Business intelligence tools are also popular, indicating a need for more visibility into operational data. This reflects a clear industry trend toward leveraging technology to support location growth and operational efficiency.

Clark said brands can take several steps to secure and retain the labor needed for expansion, including:

• Using better scheduling tools to align staffing with actual demand

• Improving forecasting accuracy to avoid overstaffing or understaffing 

• Investing in training and career development to increase retention

• Creating more flexible and predictable scheduling practices

• Leveraging real-time labor data to manage costs and productivity

“The findings revealed that only 35 percent of operators are confident in their labor strategy today. For example, restaurants looking to forecast by day or by shift might not have enough detail to make good judgment calls about when to bring more staff in or when to let them leave.  Closing that gap is critical for maintaining performance as new locations open.”

Other findings in The 2025 Restaurant Growth Insights Report based on a survey of more than 300 multi-unit restaurant operators include:

• Despite being a top priority, operators say their sales forecasts are only 60 percent accurate, on average, even though 72 percent use tech-based forecasting tools. This signals that while tools exist, many solutions are not meeting their needs. Inaccurate forecasts (off by 40 percent) will negatively impact growth and profitability.

• While 80 percent of operators prioritize real-time visibility into data across key areas like labor, food costs, and compliance, fewer than half actually have it. Major blind spots exist in tracking food costs, waste, and ingredient usage—critical to profitability. Full visibility is essential for spotting issues, ensuring accountability, and making smart decisions that protect growth and guest experience.

• Although 83 percent of operators strive to partner with vendors who can support their growth, 79 percent faced challenges during periods of expansion, ranging from rising costs to poor integration, which all become amplified as brands scale. These challenges highlight that the tools that are in place aren’t always delivering the real-time guidance or accuracy needed.

Clark noted that potential challenges in moving expansion plans forward include scaling faster than systems, teams, or infrastructure can support, and inconsistency. 

“As brands add new units, maintaining the same level of quality, service, and execution becomes harder without strong processes and real-time oversight. Inconsistent execution leads to uneven guest experiences, which can damage the brand’s reputation and customer loyalty.”

Operational execution directly supports growth by ensuring consistency, efficiency, and quality across all locations, Clark said. According to the report:

• 42 percent of operators say better execution improves customer retention

• 42 percent say it boosts staff productivity and profitability

• 31 percent say it enables faster adaptation to promotions or market shifts

“Execution is how brands deliver their promises to customers every day. When execution is inconsistent, it erodes trust and performance. When it is reliable and visible in real time, it becomes a strategic advantage that supports sustainable growth.”

An October 15 webinar will take a deeper dive into the report findings.