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The restaurant industry continues to evolve, balancing opportunity with cautious optimism in 2025. These insights were presented by the National Restaurant Association in the State of the Restaurant Industry 2025 report . With industry sales projected to reach $1.5 trillion and employment expected to grow by 200,000 jobs to 15.9 million, operators face challenges in recruitment, labor costs, and food price inflation.   

For a full breakdown of these trends and insights, the complete 2025 State of the Restaurant Industry report is available from the NRA, offering data-driven projections on consumer behavior, sales growth, and operational strategies shaping the industry’s future. The report is free to restaurant members and $349 for non-members. Click here for report. 

Employment Grows, But Hiring Remains a Challenge 

While the restaurant industry is projected to employ 15.9 million workers in 2025, adding 200,000 jobs over the past year, staffing remains a persistent challenge.  The "Great Resignation" has shifted to what experts now call the "Great Stay." Labor shortages continue to strain operations—especially in table-service restaurants, which remain 233,000 positions below pre-pandemic employment levels.  

Rising Labor and Food Costs Squeeze Margins 

Labor costs have climbed at an unprecedented pace since 2021, pushing many operators to raise menu prices in an effort to maintain profitability. Simultaneously, food costs continue to escalate, with essentials like beef, chicken, coffee, and fresh vegetables experiencing double-digit price hikes. Some staple ingredients—such as potatoes and flour—have remained stable. The cumulative impact of inflation is making it difficult for restaurants to manage expenses while staying competitive. 

 Consumers Keep Spending, But Value Matters More Than Ever 

Despite economic pressures, consumers remain committed to dining out. Spending on restaurant meals is 23% higher than pre-pandemic levels, but when adjusted for inflation, real growth stands at just 0.8%. This signals a heightened focus on value, with diners seeking promotions, loyalty perks, and dynamic pricing models to make dining out more affordable. To maintain traffic and customer loyalty, restaurants are leveraging digital tools to offer personalized deals and real-time discounts that balance affordability with profitability. 

As the industry continues to evolve, operators must embrace innovation, streamline costs, and refine their value propositions to navigate ongoing economic challenges while sustaining long-term growth. 

 For a deeper dive into these trends and expert insights into the future of the restaurant industry, download the 2025 State of the Restaurant Industry report.