Achieving restaurant profitability is the most pressing challenge for 48% of UK restaurant owners in 2025

Finding success within the UK restaurant industry can feel like a tightrope walk. Day-to-day, the balancing act involves dealing with inflation, high staff turnover, and shifting consumer spending habits, which are putting immense pressure on owners.

In this tough economic climate, pain points become glaringly clear. So, it’s hardly surprising, given all of the factors listed off above, that research from Toast's Voice of the UK Restaurant Industry 2025 report has revealed 48% of restaurant operators ranked increasing profitability as their top challenge in 2025. 

But what does profitability really mean, and how can it be achieved at such a challenging time for the restaurant industry?

Keep reading to find out. 

The reality: Restaurant profitability is the industry's north star

In an industry with such tight margins, a healthy bottom line is essential for survival, enabling UK restaurants to cover fundamental operational costs such as ingredients, rent, staff wages, and utilities. 

Profitability allows restaurants to invest in their future. Whether that means upgrading restaurant POS technology, implementing more sustainable offerings, or offering better training and benefits to staff, which in turn leads to improved service and customer satisfaction. It also enables owners to innovate and adapt to ever-evolving consumer preferences. 

Ultimately, a profitable restaurant is a stable one, so the fact that 48% of restaurant owners identified it as their biggest challenge this year is indicative of the pressure they feel to succeed against the odds.

5 strategies for increasing restaurant profitability 

Achieving sustainable profitability in such an uncertain climate requires a combination of strategic investment and operational refinement. Restaurateurs can:

1. Invest in smart restaurant technology From inventory management to shift scheduling, there are tools that can save you time and money when running your restaurant. Investing in a POS system like Toast that can help you cut down on food waste, streamline your supply chain, and give you a razor-sharp understanding of your profit margins is a no-brainer.

2. Dive into customer loyalty Having a restaurant loyalty programme pays dividends - 84% of consumers are more likely to stick with a brand that offers one. The aim of a loyalty programme should be to understand your customers on a deeper level and create incredible experiences for your guests. Whether you choose to offer customers digital stamp cards which promise vouchers or freebies in return for repeat custom, or a digitised points program where customers can collect points for each visit is up to you.

3. Lean into restaurant marketing Restaurants can leverage marketing strategies to attract and retain customers. Email marketing can help you welcome new guests,  share promotions, new menu items, and loyalty program benefits. A strong online presence, including social media and review platforms, further amplifies reach and builds a loyal customer base. Ultimately, harnessing customer data allows for personalised communication and targeted campaigns, fostering deeper engagement.

4. Set your team up for success As a restaurant owner, you’re responsible for fostering an inclusive and positive work environment that reduces staff turnover, which ultimately leads to a more productive and cost-effective workforce. It becomes easier with the help of efficient employee scheduling to match staffing with demand, utilising restaurant technology such as your POS system for streamlined order management and minimising mistakes, and investing in comprehensive staff training.

5. Highlight seasonal menu ingredients to control costs Engineering and optimising your restaurant menu to control costs is key for achieving restaurant profitability. Think about implementing local and seasonal UK ingredients into your menus that are abundant, available, and have short supply chains. It’s all about celebrating and highlighting local UK growers, producers and suppliers on your menus as well as to reducing transportation costs, spoilage and allowing for better bulk purchasing.

Looking to the future

The industry and the prospect of reaching profitability are challenging, but Toast’s Voice of the UK Restaurant Industry 2025 report also found that four out of five UK restaurateurs feel that their restaurant is likely to be open in the next year. 

This optimism is a reminder that despite economic difficulties, restaurant owners will always continue to innovate and build, to bring to life the establishments that connect people and communities together.

To read more of the key findings from Toast’s 2025 market survey, as well as data and insights on the latest UK consumer trends and restaurant technology adoption patterns, read the Toast Voice of the UK Restaurant Industry 2025 report.

To unlock exclusive statistics, download your copy of the full report on the state of the UK restaurant industry in 2025, here.