Restaurant365's 2025 Industry Survey Highlights Labor and Sales Challenges as Key Obstacles

R365 Survey Highlights Industry Trends: Investments in Marketing and Workforce Development Dominate 2025 Priorities

Restaurant365, the leading all-in-one restaurant management platform, has released its annual industry survey, capturing insights from leaders representing over 6,200 restaurant locations. The findings outline key challenges from 2024 and priorities for 2025, with a strong focus on sales, marketing, and employee recruitment and retention initiatives.

Key Findings from 2024

The survey reveals continued pressures from rising food and labor costs:

• Labor Costs: 88% of respondents reported increased staff expenses, consistent with 89% last year. Of these, 51% saw a 1%–5% increase, 41% experienced a 6%–14% rise, and 8% faced jumps exceeding 15%. Labor challenges left 59% of operators unable to run at full capacity.
• Food Costs: 86% reported higher food expenses, with 53% experiencing a 1%–5% increase, 37% a 6%–14% rise, and 10% exceeding 15%. To counteract this, 61% adjusted menu prices.

Challenges and Priorities for 2025

The coming year presents hurdles for restaurant leaders:

• Top Challenges: Recruitment and retention (32%), rising food costs (27%), and sales volume (21%).
• Strategic Investments:
  • 55% aim to boost sales through enhanced marketing, promotions, and loyalty programs.
  • 27% plan investments in workforce development, including higher salaries, better training, and expanded benefits.

Despite challenges, industry optimism remains high, with total restaurant sales surpassing $1 trillion for the first time.

"For over a decade, Restaurant365 has supported operators in turning obstacles into opportunities through innovation and resilience," said Tony Smith, CEO and Co-founder of Restaurant365. "Labor remains the industry’s greatest concern, and we are committed to helping restaurants balance costs, improve efficiency, and grow sales while employing millions of Americans."

Evolving Workforce and Consumer Trends

The survey highlights shifts in employee training and consumer behavior:

• Employee Training: 58% of restaurants provide 1–2 hours of training weekly, with 45% conducted in person and 21% via digital platforms. Improved training is essential to address turnover, which 39% reported at 11%–25%.
• Consumer Preferences:
  • 34% anticipate more takeout and delivery demand in 2025.
  • 28% foresee greater interest in healthier menu options.
  • 24% expect reduced dine-in visits.

Third-party delivery services already contribute 11%–30% of revenue for nearly half of respondents, underscoring their growing importance in meeting consumer needs.

About Restaurant365®

Restaurant365 is the leading all-in-one restaurant management platform, specializing in accounting, inventory, workforce management, and payroll solutions tailored to the restaurant industry. Its cloud-based platform integrates with hundreds of POS systems, vendors, and banks, delivering actionable insights that help operators control costs, optimize labor, and enhance guest experiences. Headquartered in Irvine, California, with an office in Austin, Texas, Restaurant365 is backed by leading investors including Bessemer Venture Partners, ICONIQ, KKR, L Catterton, and Serent Capital. For more information, visit restaurant365.com.