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R365’s biannual study shows fewer restaurant operators raising prices as they target employee training to support the bottom and top lines.
This article first appeared in MarketWatch.
Restaurant365, the leading all-in-one restaurant management platform, today released findings from its biannual industry survey. 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.
Participants reported continued food and labor cost increases, with 89% experiencing rising staff expenses, well exceeding the 79% of last year’s survey who predicted labor cost increases. 82% of those experiencing labor increases saw a 1% to 5% increase, while 15% experienced a 6% to 14% jump. Food cost increases also surpassed expectations, with 91% of respondents reporting a rise, up from the 82% 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% to 5% increase.
In response to rising food costs, 56% of respondents said they planned to increase menu prices, down from 61% earlier in the year, and 18% said they doubled down on inventory and waste tracking, up two percentage points. The vast majority, 65%, of those businesses experiencing rising labor and recruiting cost challenges said their primary response has been operating below full capacity, while 19% said they limited operating hours to manage the shortage and increased cost.
Read the full article at MarketWatch.
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