Driven by a positive economic environment and resilient consumer demand, the restaurant industry is expected to reach $1.5 trillion in sales and add more than 200,000 net new jobs in 2025, bringing total restaurant and foodservice employment to 15.9 million by year's end. This is according to the National Restaurant Association 2025 State of the Restaurant Industry report.

Key findings from this year's report:

• Restaurant operators are cautiously optimistic about business conditions, but competition will remain strong. More than 8 in 10 operators expect their 2025 sales to be either higher or about the same as 2024. At the same time, restaurant operators expect competitive pressures to intensify in 2025.
• Consumers have pent-up demand for restaurant meals. Consumers report they would use restaurants more frequently if they had the money, and this sentiment cuts across all segments: on-premises dining at tableservice restaurants (81%) to visiting quickservice restaurants, snack places, delis or coffee shops (76%) to having food delivered at home (82%).
• Restaurants aim to attract more in-person diners. The majority of operators say increasing traffic on site and getting diners back in their seats will be more important to their restaurant’s success in 2025. This is especially important to 90% of fine dining operators and 87% of casual dining operators.
• Despite the positive outlook, many operators say “new year, similar concerns.” In 2025, restaurants will continue to grapple with many of the same challenges they faced in 2024. Rising labor and food costs, along with the ongoing struggle to recruit and retain employees, remain among the top concerns for both full-service and limited-service operators.

“The fundamentals of the restaurant industry are strong, and operators are optimistic about the year ahead,” said Michelle Korsmo, president and CEO of the National Restaurant Association. “Industry sales are expected grow more than four percent this year, and employment should reach nearly 16 million jobs. That growth will come from restaurant operators finding the balance of value and experience for consumers, and innovating breakthrough efficiency in their operations.”

Expanding the definition of value

In 2025, the meaning of value to the dining consumer will extend beyond price to include a mix of experience, hospitality and affordability. Research highlights that welcoming environments and socialization are key motivators for consumers. To address this demand, restaurant operators must strike a balance between offering value-based pricing while ensuring cleanliness alongside a friendly, approachable staff.

The emphasis on experience also extends beyond customer service to the unique ways restaurants engage diners. Seventy percent of consumers expressed interest in tasting events, 52% in private dinner events with a chef, and 50% in cooking classes at a restaurant. These preferences illustrate the growing importance of innovative, hospitality-driven dining, where restaurants are not just places to eat, but spaces for entertainment, education and community building.

Loyalty programs are also providing value for both the operator and the consumer. Among operators with such programs, 70% say they helped boost customer traffic. For consumers, being a member of a loyalty program is a growing factor when choosing a restaurant. Sixty-one percent of delivery customers, 54% of quickservice patrons, and 41% of tableservice diners indicate that being part of a rewards program influences their dining choices.

Consumers and operators crave in-person dining

In 2025, the restaurant industry is navigating a dual focus as both on-premises and off-premises dining continue to meet distinct consumer needs. Consumers are eager to dine out more often, which aligns with operators’ goals.

Off-premises dining, however, remains integral, especially for younger demographics. Delivery is driven by convenience, technology and promotions, with 82% of consumers, including 89% of millennials, expressing a strong interest in ordering delivery more often if their finances allow. At the same time, takeout is favored for its speed and flexibility, with over half of consumers, including 67% of Gen Z and 64% of millennials, considering it essential. Half of all restaurant operators report that off-premises sales now account for a larger proportion of their revenue compared with 2019.

“Nine out of 10 people enjoy going to restaurants, and restaurant operators understand what it takes to keep that experience positive,” said Korsmo. “Operators are adapting to meet today’s consumers’ wants and needs with an eye to economic pressures, regulatory changes and rising food and labor costs.”

Source: National Restaurant Association