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
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
Equipment
Other ways operators are tackling prime costs:
Percentage of operators
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
48%
Investing more in marketing
44%
Running limited-time offers
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
Note: 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.
