Must-See Restaurant Industry Trends
McDonalds U.S. Sales Decline But Global Sales Grew With Marked Difference in Consumer Spending Patterns
- In Q4 2024, McDonald’s faced a 1.4% decline in U.S. same-store sales, its largest drop since the pandemic, driven by cautious consumer spending and an E. coli outbreak that temporarily impacted operations. Despite efforts to attract budget-conscious diners with value offerings like the $5 meal deal and Chicken Big Mac, U.S. consumers remained hesitant, leading to weaker sales.
- In contrast, global sales grew by 0.4%, fueled by strong demand for lower-cost items in markets like the Middle East, Japan, and China, where diners responded positively to discounted offerings. This surge in value-driven demand internationally helped offset the U.S. decline, showcasing the growing importance of McDonald’s global markets in driving overall growth. | Source: Yahoo Finance
NYC Restaurants Redefine Value of Restaurant Week as Operational Costs Rise
- During NYC’s Restaurant Week (Jan. 21 – Feb. 9, 2025), many restaurants have made a tactical shift, viewing the event less as a direct profit driver and more as a strategic marketing opportunity. With operational costs rising and fixed prix-fixe menus ($30, $45, $60) unchanged since 2022, restaurants are focusing on maximizing customer exposure rather than margins.
- Owners like those at Neir’s Tavern and Excuse My French have adjusted portion sizes and streamlined menus to manage costs efficiently while prioritizing the event’s role in attracting new diners and building long-term customer relationships.
- Rather than aiming for immediate profits, businesses are leveraging Restaurant Week as a platform to increase brand visibility, test new menu items, and encourage repeat visits—reflecting an intentional, growth-focused approach in today’s evolving restaurant landscape. | Source: New York Post
Price Fluctuations — Egg Price Volatility
Due to surging egg prices, restaurants are employing various strategies to mitigate the impact.
Implementing Surcharges
Best For Casual Dining, Breakfast-Focused Restaurants, Family-Owned Diners
- Some establishments have introduced a per-egg surcharge to offset increased costs. For instance, Waffle House added a 50-cent surcharge per egg due to rising prices caused by avian influenza. | Source: businessinsider.com
- Restaurants with a high volume of egg-based dishes (e.g., breakfast joints) can implement per-egg surcharges without significantly affecting customer perception.
- Family-owned diners and casual eateries that serve all-day breakfast may find this strategy useful to maintain margins while continuing to offer customer favorites.
Adjusting Menu Offerings
Best For Fine Dining, Upscale Bistros, Chef-Driven Restaurants
- To manage expenses, certain restaurants are temporarily removing or modifying egg-centric dishes. Christine Ha, owner of Stuffed Belly in Houston, removed her egg salad sandwich from the menu instead of raising its price. | Source: houston.eater.com
- High-end restaurants with rotating seasonal menus can more easily adjust menu offerings to reduce egg-centric dishes without affecting brand perception.
- Chef-driven establishments can pivot to alternative ingredients or introduce new creative dishes that minimize egg usage while maintaining quality.
Exploring Egg Substitutes
Best For Health-Conscious Cafés, Vegan/Vegetarian Restaurants, Fast-Casual Chains
- Some establishments are experimenting with plant-based or synthetic egg alternatives to reduce reliance on traditional eggs. Products like “Egg ‘n Easy” can replace up to 50% of eggs in baking, helping businesses manage costs. | Source: modernrestaurantmanagement.com
- Plant-based or synthetic egg alternatives align well with vegan/vegetarian restaurant menus, making the transition smoother.
- Fast-casual chains focused on healthy eating can experiment with plant-based substitutes without alienating their customer base.
- Cafés that serve baked goods and breakfast items can explore egg alternatives to maintain consistency while managing costs.
Enhancing Inventory Management
Best For High-Volume Chain Restaurants, Institutional Dining (Hospitals, Corporate Cafeterias)
- Utilizing advanced inventory systems allows restaurants to monitor usage closely, minimize waste, and optimize purchasing strategies, thereby mitigating the financial impact of rising egg prices. | Source: restaurant365.com
- Large chains that purchase ingredients in bulk can utilize inventory management systems to forecast price changes and optimize purchasing.
- Institutional foodservice providers, such as hospital cafeterias and corporate dining facilities, can implement software-driven procurement to minimize waste and control costs.
2025 State of The Industry Report Summary
By National Restaurant Association
2025 Restaurant Industry Outlook: Optimism Amid Ongoing Challenges
The restaurant industry is poised for significant growth in 2025, with projected sales reaching $1.5 trillion and over 200,000 new jobs expected to be added, bringing total employment to 15.9 million. Despite the current climate of rising food and labor costs, persistent staffing shortages, and competitive pressures, the industry’s outlook remains cautiously optimistic, according to the National Restaurant Association’s 2025 State of the Restaurant Industry Report.
Key Highlights:
- Sales & Employment Growth: While many operators are grappling with familiar challenges from 2024, over 80% of restaurant owners expect their sales to be the same or higher in 2025. The industry remains the second-largest private-sector employer in the U.S., signaling resilience despite headwinds.
- Shifting Focus to Experience: The definition of “value” is evolving beyond price to include ambiance, hospitality, and unique dining experiences like tasting events, private chef dinners, and cooking classes. This shift reflects efforts to attract customers willing to pay for more than just food.
- In-Person Dining Revival: Although off-premises dining (delivery, takeout) continues to thrive—especially among Gen Z and millennials—the majority of operators, particularly in fine dining (90%) and casual dining (87%), are focused on bringing diners back on-site to create stronger connections and increase revenue.
- Loyalty Programs as Growth Drivers: Loyalty programs are becoming a crucial strategy, with 70% of operators reporting they help boost customer traffic. Consumers increasingly consider membership in rewards programs when choosing where to dine.
- Ongoing Challenges: Despite the positive outlook, operators remain concerned about rising operational costs, recruitment difficulties, and regulatory changes. However, innovation in efficiency, menu offerings, and customer engagement strategies is helping many navigate these challenges effectively.
Facing Challenges, Driving Growth: The Restaurant Industry’s Path Forward
The restaurant industry’s strength lies in its ability to adapt and innovate in the face of challenges. In 2025, operators are turning economic pressures and shifting consumer demands into opportunities for strategic growth. Through efficiency, experience-driven value, and agile business models, the industry is positioned not just to endure but to thrive.
Download The Restaurateur Benchmark Guide
Don’t let the year number fool you! Our Benchmark Guide can help you prepare for success in 2025 by leveraging the insights, best practices, and tools outlined for the past year. While the 2025 version is on its way, this guide remains a valuable resource packed with actionable strategies and industry benchmarks to keep you ahead of the curve. | Download Now
