Rising Costs and Employee Retention: Major Concerns for the Restaurant Industry, Says Restaurant365 Survey

A recent survey conducted by Restaurant365, a restaurant management platform, has shed light on the challenges and opportunities the restaurant industry might face in 2025. The survey gathered insights from restaurant leaders representing over 6,200 locations and found that rising labor and food costs and recruitment and retention issues are major concerns for the industry.

In 2024, the survey participants reported continuous increases in food and labor costs. Around 88% of participants faced rising staff expenses, while 86% reported increased food costs. As a result of these rising costs, 59% of respondents said that labor challenges have led their businesses to operate below full capacity. Around 61% of respondents have increased their menu prices to cope with the rising food costs.

Looking forward to 2025, the survey suggests that the industry may face further challenges. Around 32% of restaurant leaders identified staff recruitment and retention as their main challenge, with 27% concerned about rising food costs and 21% citing sales volume as their primary issue. However, despite these potential challenges, the industry remains optimistic and is ready to adapt for continued growth.

The survey also highlighted areas of focus for the industry in 2025. Increasing sales is the top priority for 55% of those surveyed, followed by reducing costs and enhancing guest experiences. To address the predicted rise in food and labor costs, 36% of restaurant leaders plan to invest in sales and marketing technology, promotions, and loyalty programs, while 27% plan to invest in staff training, salaries, recruitment, and benefits.

The survey also revealed current practices and future expectations regarding employee training and guest preferences. Currently, 58% of respondents provide one to two hours of training per week, mostly in-person (45%) and via digital platforms (21%). Regarding consumer preferences, 34% of respondents expect an increase in takeout and delivery services in 2025, while 28% anticipate higher demand for healthier options, and 24% predict fewer dine-in visits.

Rising costs, employee recruitment and retention, and changes in consumer preferences are key factors that are set to shape the restaurant industry in 2025. As the industry adapts to these challenges, Restaurant365 is committed to assisting restaurants with its management platform, which aims to help control food costs, optimize labor, and improve guest experiences.