The restaurant industry has been in the eye of the storm, driven by shifting consumer behaviors, rapid advancements in technology, and the race to dominate emerging formats. As we reflect on 2024, it’s clear these forces will only accelerate in 2025, bringing both challenges and opportunities for operators.
Here are my predictions for the trends that will shape the restaurant industry in the year ahead—and how businesses can emerge stronger by embracing them.
Humans Will Replace AI in 2025Â
You read that correctly. Despite the hype, the robotic restaurant future remains further out than many think. In 2025, artificial intelligence will continue to drive efficiency, particularly in areas like inventory management, personalization, and workforce optimization. However, the human element will remain critical to delivering exceptional service. This isn’t about replacing people but empowering them to deliver better results with smarter tools.Â
Fewer Restaurant Technology Companies Ahead
The restaurant tech industry is overdue for a shakeup. While significant investment has poured into the sector, few technologies have proven to be sustainable businesses. In 2025, we’ll see increased consolidation as operators demand streamlined solutions and a single source of truth. This wave of mergers and integrations will drive innovation and better support the evolving needs of the restaurant ecosystem.Â
Restaurants Will Leave 2025 Stronger Than They Did in 2024
The last few years have tested the restaurant industry like never before. Labor shortages, inflation, and bankruptcies, in particular, forced many operators to adapt or exit in 2024. While challenges will persist in 2025, the businesses that remain are stronger, more resilient, and better prepared to navigate future disruptions. Tough times build better businesses.Â
The Build vs. Buy Debate Will Die DownÂ
While the ongoing debate around building versus buying technology has sparked lively discussions, 2025 will mark a turning point where the industry widely embraces a blended approach. Forward-thinking operators will recognize that the right answer is a strategic combination: build customer-facing solutions for differentiation and rely on trusted vendors for infrastructure to drive efficiency and agility.
Subscriptions Grow as Consumers Seek ValueÂ
In a February report published by the National Restaurant Association, in their  2024 State of the Restaurant Industry report, consumers—especially Gen Z and millennials—are drawn to the value and exclusivity of subscription dining programs. From curated menus to unique perks, these offerings deepen customer loyalty and provide operators with a predictable revenue stream. Restaurants that adopt this model will see their most loyal customers returning time and again.
The Death of Traditional Tipping
2025 could mark the tipping point—literally. As kiosks and automation become widespread, restaurants will shift toward higher wages, phasing out traditional tipping models to create a more equitable and streamlined experience for workers and diners alike. This evolution will redefine the dynamics of quick-service dining.Â
While these trends may feel disruptive, they are shaping the foundation for the future of the restaurant industry. Operators who embrace technology and prioritize strategies like loyalty programs will gain a competitive edge—fostering deeper connections with customers, streamlining operations, and driving sustained growth. The road to market leadership begins with leveraging innovation to enhance both the business and the guest experience.
