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.
“Concerns around inflation, trade wars, and other potential headwinds are prompting restaurant operators to expand strategies that protect their business and support growth. This includes everything from diversifying revenue streams and marketing channels to reducing food and labor costs and engaging new tech suppliers.”
Brendan Sweeney, CEO & Co-founder of Popmenu
Economic Uncertainty
Nearly two-thirds of restaurant operators are feeling uneasy about tariffs and longer-term economic performance.
believe U.S. tariffs will weaken restaurant sales
fear the U.S. may go into a recession in the next 12 months
Managing Higher Prime Costs
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.
Average YOY increase in food costs
Average YOY increase in labor costs
Where restaurants are reducing spend:
Percentage of operators
Labor
Food and beverages
Decor
Equipment
Other ways operators are tackling prime costs:
Percentage of operators
Minimizing food waste
Exploring alternative suppliers
Using cost management/inventory software
Removing low-margin dishes
Consolidating tools and costs
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:
Increasing and personalizing outreach to guests
Food and beverages
Running limited-time offers
Hosting special events
Social media
post every day
post a few times a week
Email/text
post every day
post a few times a week
Sidebar: Half of restaurant operators currently use AI to help with marketing while 29% plan to going forward.
Advice for fellow restaurant operators
When asked what advice they would offer fellow operators to strengthen their business, restaurant leaders shared the following:
Survey methodology.
Popmenu conducted an anonymous, nationwide study of 359 U.S. restaurant owners and operators from November 20, 2024 to January 10, 2025. Popmenu also conducted an anonymous, nationwide survey of 1,000 U.S. consumers, ages 18 and older, from November 17 to 18, 2024.
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.
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