State of the Plate 2025

Amid softer consumer demand and rising prime costs, 85% of restaurant operators say they are competing more fiercely for every guest this year; 82% are actively reducing expenses. Popmenu’s Q3 2025 survey of 300 U.S. restaurant leaders explores marketing, tech and financial strategies they are applying to stay resilient and improve profitability in less-than-certain times.

“Ongoing concerns around inflation, trade wars, weaker consumer spend and other economic headwinds are prompting restaurant operators to take actions that protect margins and profitability. This includes everything from reducing food and labor costs to diversifying revenue streams and marketing channels and engaging new suppliers. Consumers may see fewer menu options or changes to dishes, more meal deals and more tech-driven experiences at their favorite eateries.”

Brendan Sweeney, CEO & Co-founder of Popmenu

Financial Prospects Remain Uncertain

Nearly two-thirds of restaurant operators are feeling uneasy about tariffs and longer-term economic performance.

64%

believe U.S. tariffs will weaken restaurant sales

64%

fear the U.S. may go into a recession in the next 12 months

Prime Costs Keep Rising

Costs for food and labor continue to climb for restaurants this year, causing many of them to consolidate and cut expenses and implement new ways to increase margins.

29%

Average YOY increase in food costs

23%

Average YOY increase in labor costs

Where restaurants are reducing spend:

Percentage of operators

58%

Labor

40%

Food and beverages

25%

Decor

25%

Equipment

Other ways operators are tackling prime costs:

Percentage of operators

Popmenu custom fast food quick service restaurant icon food

76%

Minimizing food waste

68%

Exploring alternative suppliers

40%

Using cost management/inventory software

38%

Removing low-margin dishes

30%

Consolidating tools and costs

25%

Using tech to make staff more efficient

Strategies to stay resilient

In addition to scaling back in certain areas, operators are increasing time and resources spent on marketing and events to sustain and grow sales:

55%

Increasing and personalizing outreach to guests

Popmenu AI marketing icon with microphone.

48%

Investing more in marketing

44%

Running limited-time offers

44%

Hosting special events

Frequency of Marketing Outreach

Social media

28%

post every day

51%

post a few times a week

Email/text

42%

message guests every week

64%

send emails automatically

Popmenu webinar thumbnail about Restaurant Trends to Watch in 2025: Operators Share Their Game Plans for Growth.

Sidebar: Half (51%) of restaurant operators currently use AI to help with marketing while 29% plan to going forward.

Advice from Restaurant Owners and Operators

When asked what advice they would offer fellow operators to strengthen their business, restaurant leaders shared the following:

Take care of your employees and they will take care of your guests.

Open new revenue streams, i.e. catering, merchandise etc.

Get involved in the community, people tend to support those who give back.

Invest in training and marketing.

Get to know each and every guest.

Go out to competitors and see what they are offering: quality, presentation, perceived value.

Make sure your investments are tracking toward a return.

Be open to new ways of doing things. The old ways are not as effective as they once were.

Technology is going to be a big component to sustainability in our industry.

Build deep, consistent relationships with guests, not just transactions.

Stay on top of your monthly P&L. Adjust quickly to rising costs.

Streamline and scale operations.

Build a strong online presence.

Look into technology solutions that help drive revenue while providing quality data and analytics.

Survey methodology.

Popmenu conducted an anonymous survey of 300 restaurant owners and operators across the U.S. from August 12, 2025 to September 19, 2025. The survey represents restaurants of different types and sizes.

About Popmenu.

Popmenu is the ultimate solution for restaurants looking to grow their digital presence and revenue. From SEO-driven websites, interactive menus, and direct online ordering to AI marketing and phone answering, Popmenu offers powerful tools that help restaurants increase business automatically. Popmenu serves 10,000+ restaurants in the US, UK and Canada.