[US] The 2025 Voice of the Restaurant Industry Survey Image

The 2025 Voice of the Restaurant Industry Survey

Brian KoerberAuthor

Restaurants are running on resilience

Restaurant operators are meeting the moment by doubling down on their craft: hospitality.  Our 2025 Voice of the Restaurant Industry Survey shows how the industry is tackling its biggest challenges with a renewed focus on profitability, efficiency, and the guest experience.

With rising food and labor costs, supply chain issues, and shifting consumer spending habits, running a restaurant has never been more complex. To understand how operators are navigating this new reality, we surveyed 712 restaurant decision-makers from across the country from April 18, 2025, and May 13, 2025, to hear directly from them about their challenges, priorities, and plans for the future.

The big takeaway? This industry doesn’t quit.

Faced with uncertainty, operators are showing incredible resilience. They’re getting strategic about profitability, leveraging technology to work smarter, and finding new ways to create memorable experiences that keep guests coming back. This report unpacks the data behind that grit.

Key takeaways

The pressure points of 2025

When asked about their biggest pain points, operators were clear: inflation is the top concern for one in five restaurants (20%). If costs continue to be a challenge, 48% plan to fight back by increasing menu prices, while others are focused on conducting profit analysis (38%) and adjusting food suppliers (31%).

Raising prices is the primary anticipated defense for inflation

How are restaurants thinking about combating rising costs? Nearly half (48%) plan to increase menu prices if inflation continues to grow. This is a direct reflection of the tough choices operators are forced to make to protect their margins in a high-cost environment, a strategy that directly impacts the guest's wallet.

Restaurant Labor Challenges in 2025

At the same time, labor challenges (difficulty in finding and retaining staff, as well as paying them a competitive wage) have reached a high. Roughly four in ten (41%) operators report facing moderate or extreme hiring challenges. In response, they’re looking for ways to do more with the teams they have.

How restaurants are managing labor challenges

The top approaches employers plan to take to combat labor challenges include increasing staff efficiency (47%), implementing new retention strategies (42%) to keep their best people happy and on the floor, and optimizing shift scheduling (39%). It’s a clear signal that operators are investing in their people and processes as the foundation for a stronger business.

The path to profitability: Driving demand and embracing tech

For restaurant operators, profitability isn’t just a goal; it’s the goal. 40% of restaurants named it their top priority for the year, far outpacing any other objective. The primary strategy for getting there? Increasing guest demand.

But that’s easier said than done. Marketing and attracting new guests is a top business pain point, and 46% of operators say they find advertising to be moderately or extremely challenging.

In addition to increasing guest demand, operators hope to combat some of their hiring challenges by improving employee productivity (25%) and employee retention (23%).

In a potential downturn, restaurants invest in marketing, not cuts

Restaurants are choosing to fight, not flee. If consumer spending were to slow, the top strategies for operators are to increase marketing(47%), offer deals (46%), and discounts during a specific time(45%), well ahead of cost-cutting measures like reducing hours of operation (19%) or reducing staff headcount (17%). It’s a bold bet on the power of attracting guests, even when times are tough.

In an industry where margins are razor-thin, success comes down to getting the little things right. That's why operators are digging into the details, from optimizing schedules to tracking every ingredient, helping turn data into dollars.

Despite headwinds, expansion is still on the menu

Confidence in the industry remains strong. One in four (25%) restaurant operators report they are "very likely" to expand their business in the next year. This forward-looking optimism demonstrates a powerful belief in their brands and the enduring demand for hospitality. 

Restaurants are ready to embrace AI

Operators are looking for an edge, a way to give their teams human-boosting tech that helps them work smarter, not harder. The future is now, and restaurants are surprisingly comfortable with it. 86% of operators report they strongly or somewhat agree they are comfortable using AI, signaling a readiness to adopt new technologies that can help streamline operations and enhance the human element of hospitality.

AI usage in restaurants

Restaurants are already putting this human-boosting tech to work on their biggest problems, using AI for marketing automation (28%), getting real-time insights (27%), and optimizing their menus (26%). It’s about giving their teams the superpowers they need to help make smarter decisions, streamline operations, and focus on what truly matters: the guest.

The future is hospitality

Rising costs and a tough labor market are making things more complicated for restaurants. But this year’s report also tells a story of incredible resilience.

Faced with uncertainty, operators are doubling down, not backing down. They’re choosing to fight for guest traffic by investing in marketing and customer incentives rather than cutting staff or hours. They’re embracing new technology not to replace their people, but to give them human-boosting tech that makes every shift run smarter. And one in four are still planning to expand in the next year.

This isn’t just about protecting margins; it’s about protecting the heart of the business—the experience, the community, and the irreplaceable magic of hospitality. The challenges are real, but the industry’s resolve is stronger. It’s a powerful reminder that in this business, grit is always on the menu.

DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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