Running a restaurant is getting harder. Rising food and labor costs, supply chain issues, and changing consumer spending habits have made day-to-day operations more complex.
To understand how operators are handling it, Toast surveyed 712 restaurants across the country for its 2025 Voice of the Industry report.
The results show an industry that’s under pressure but still pushing forward.
Improving profitability is the number-one priority, with 40 percent of operators saying it’s their top goal for the coming year.
When asked about their biggest challenges, operators ranked inflation (20 percent), marketing (16 percent), and sourcing and hiring (16 percent) as their top pain points.
Many are preparing to adjust menu prices if needed. Nearly half of restaurants, 48 percent, plan to raise prices if inflation continues.
“This is a direct reflection of the tough choices operators are forced to make to protect their margins in a high-cost environment, a strategy that directly impacts the guest’s wallet,” the study read.
Labor challenges are also hitting a high point, with 47 percent of operators saying they’re focused on increasing staff efficiency to get ahead of the problem.
The survey also shows that restaurants are open to new tools. Operators are optimistic about AI, with 86 percent saying they feel comfortable using it and 81 percent planning to use it more in the future.
“The future is now, and restaurants are surprisingly comfortable with it,” the study read.
Restaurants invest in marketing, not cuts
If consumer spending were to slow, the top strategies are to increase marketing (47 percent), offer deals (46 percent), and provide discounts during specific time periods (45 percent). Those actions rank well ahead of cost-cutting measures like reducing hours of operation (19 percent) or reducing staff headcount (17 percent).
Even with all these pressures, the report points to a sense of resilience. Instead of cutting back, operators are working to protect guest traffic through marketing and customer incentives. They’re adopting technology to support their teams and make each shift run smoother, not to replace the human side of hospitality.
Despite the uncertainty, one in four restaurants still plans to expand in the next year.
