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Survey: Restaurant leaders optimistic for 2025; plan to invest in...

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Gen Z restaurant
Roughly three-quarters (74%) of restaurant leaders plan to expand their menu offerings this year.

Restaurant owners are looking to expand their store counts, loyalty programs and technology usage to stand out in 2025.

The overwhelming majority (78%) of restaurant leaders say they are more optimistic about their business now compared to a year ago, according to the fifth-annual Future of Commerce report from payment technology company Square. Nearly two-thirds (65%) say they plan to increase their number of locations in 2025, and 74% plan to expand their menu offerings, leaning into new experiences and experimentation to boost sales.

More than seven-in-10 (71%) restaurant leaders are planning to increase investment in their loyalty or reward programs to keep customers close over the next 12 months. More than eight-in-10 (83%) say their current loyalty program successfully drives up order or basket size, as well as repeat visits (82%) and return on investment (78%).

[READ MORE: CoStar: Service-based brands will be biggest leasers of real estate space in 2025]

These loyalty programs are a big hit with consumers, as nearly 70% say they find them to be valuable. Forty-three percent of restaurant businesses have implemented exclusive discounts for their members.

In addition, Square’s research shows that 85% of restaurant leaders plan to invest in technology, such as new AI and automation tools, to help improve their companies this year. Three-quarters (75%) of them are spending more time on business operations compared to a year ago as costs rise and industry challenges continue. 

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Two-thirds of restaurant leaders believe AI or automation will improve their business in each of the 15 areas Square asked about, the most popular of which are marketing and promotions (77%), inventory management (77%), payments (76%), menu optimization (76%) and staff management (75%).

The planned investments in new locations, loyalty programs and technology come as restaurants are increasingly fighting for a share of customers’ wallets. Most consumers (63%) are planning to cut back on restaurant spending in the new year.

“In 2025, restaurants are walking the fine line between automation and hospitality,” said Ming-Tai Huh, head of food & beverage at Square. “As businesses continue to face economic pressures, we’re seeing them invest in growth and experimentation as they find new, streamlined ways to work and deliver exceptional customer service – particularly through using time-saving and experience-enhancing technology.”

For its Future of Commerce report, Square surveyed 6,000 owners and managers of businesses in three industries: Beauty, retail and restaurant. The businesses were located in the U.S., Canada, U.K. and Australia, with 500 respondents per industry per country. Square also surveyed 4,000 consumers: 1,000 each in the U.S., Canada, U.K. and Australia. 

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