MRM Research Roundup: Midyear Report Card, Cowboy Carter Boost, and the Evolving Pumpkin Craze

This article first appeared in Modern Restaurant Management.

Restaurant leaders representing more than 5,000 locations shared 2025’s top challenges and opportunities alongside their priorities for the rest of the year, including increased marketing and sales to drive revenue, training to improve guest experience and customer loyalty, and balancing cost controls with menu price increases in Restaurant365’s biannual industry survey.

Participants reported continued food and labor cost increases, with 89 percent experiencing rising staff expenses, well exceeding the 79 percent of last year’s survey who predicted labor cost increases. 82 percent of those experiencing labor increases saw a 1 percent to 5 percent increase, while 15 percent experienced a six to 14 percent jump. Food cost increases also surpassed expectations, with 91 percent of respondents reporting a rise, up from the 82 percent who had expected increases at the start of the year. More than half of those coping with food cost inflation this year are seeing a 1 percent to 5 percent increase.

In response to rising food costs, 56 percent of respondents said they planned to increase menu prices, down from 61 percent earlier in the year, and 18 percent said they doubled down on inventory and waste tracking, up two percentage points. The vast majority, 65 percent, of those businesses experiencing rising labor and recruiting cost challenges said their primary response has been operating below full capacity, while 19 percent said they limited operating hours to manage the shortage and increased cost.

Restaurant leaders anticipate continued challenges this year, particularly with the looming threat of tariffs hanging over the global economy. 78 percent of respondents said they expected to be impacted by tariffs, with 64 percent expecting a one percent to 10 percent increase in food cost prices due to global trade barriers.

At the same time, operators remain focused on the basics, with food costs, labor costs, and sales volume as the top three concerns for restaurants for the remainder of the year. Notably, 52 percent of respondents cite sales as their primary concern. 

With increased sales as the top priority, more than 40 percent of operators plan to increase their budgets for promotions and marketing, particularly for off-premise dining, which remains one of the most significant shifts in consumer preferences post-pandemic. An additional 35 percent of respondents reported seeing more takeout and delivery orders than in previous years, which correlates with 33 percent of participants reporting a decrease in dine-in visits.

Operators are also preparing to boost employee training to drive both retention and the overall guest experience, with 30 percent of survey participants reporting they already increased pay. Another 30 percent said they spent more on enhanced training so far this year. For the remainder of 2025, improved training appears to be the focus, with 40 percent of participants pegging it as their top priority, followed by 27 percent working to offer employees better work-life balance, and 19 percent setting aside resources to increase pay.

Finally, improvements in staff training, which directly leads to improved guest experiences, will be critical this year. More than half, 58 percent, of respondents said they don’t plan to open any additional locations this year, meaning that all additional revenue must come from existing locations. Of those looking to expand, 19 percent of participants said they’re planning one additional location, and 20 percent said they’re working on opening two to five more locations before the end of the year ends.

Read more at Modern Restaurant Management.