Price Fluctuations
Uncertainty Grips Texas Restaurants Amid Tariff Concerns
- Surveys indicate that approximately 65% of U.S. restaurants source goods from abroad, with the Texas Restaurant Association suggesting the percentage is even higher for restaurants in Texas.
- Current tariffs are impacting essential supplies, including avocados and kitchen equipment.
- Many restaurants rely on Chinese imports for machinery repairs, and rising costs threaten already-thin profit margins.
Labor Shortages & Workforce Management
Seattle’s Minimum Wage Hike Reignites Tipping Debate
- Seattle raised its minimum wage to $20.76/hour and eliminated the $2.72 tip credit, sparking debates on whether tipping is still necessary.
- Some argue higher wages reduce the need for tips, while others note $20.76 is still not a living wage, especially in expensive cities like Seattle.
- Restaurants face financial strain, and tipped workers, despite higher wages, still earn less overall and remain vulnerable to job instability and wage theft.
Shifting Consumer Dining Trends
KFC Reinvents Itself with Major Changes
- Headquarters Relocation – KFC is moving from Louisville, Kentucky to Plano, Texas, aligning with Pizza Hut’s HQ for better collaboration.
- Menu Innovations – The chain launched $5 Bowls, added a Mike’s Hot Honey spicy chicken collaboration, and introduced a $25 Fan Favorites Box.
- Restaurant & Tech Upgrades – KFC is testing a new restaurant prototype with a simplified menu and revamped layout, seeing a 60% boost in order accuracy, 41% higher guest satisfaction, and 30% faster service.
Competitive Landscape & Market Positioning
Red Robin’s Strategic Closures Amid Financial Struggles
- Red Robin is considering closing 70 underperforming locations as leases expire, after reporting a $32.4 million Q4 loss in 2024 due to declining traffic.
- The company plans to sell three properties in Q1 2025, expecting to generate $5.8 million to help repay debt and stabilize operations.
- Like other struggling restaurant chains, Red Robin is scaling back its footprint due to slowing consumer spending and post-pandemic financial pressures.
Upcoming Events & Seasonal Trends
National Restaurant Association Show
- Dates: May 17–20, 2025
- Location: McCormick Place, Chicago, IL
- Overview: The premier event for foodservice professionals, featuring innovations in foodservice, equipment, and technology. Includes educational sessions, live culinary demonstrations, and networking opportunities.
- More Information: National Restaurant Show
Restaurant Leadership Conference
- Dates: April 13–16, 2025
- Location: JW Marriott Phoenix Desert Ridge Resort & Spa, Phoenix, AZ
- Overview: A high-level networking event bringing together restaurant executives, innovators, and industry leaders to discuss market trends, leadership strategies, and innovation.
- More Information: Informa Connect
Bar & Restaurant Expo
- Dates: March 24–26, 2025
- Location: Las Vegas Convention Center, Las Vegas, NV
- Overview: Designed for bar and restaurant owners, operators, and managers, this expo covers new products, technology trends, and operational strategies. Includes interactive exhibits, live demos, and educational sessions.
- More Information: Bar And Restaurant Expo
International Pizza Expo & Conference
- Dates: March 25–27, 2025
- Location: Las Vegas Convention Center, Las Vegas, NV
- Overview: The largest gathering for pizza professionals worldwide, featuring new product showcases, recipe innovations, and supplier networking. Ideal for pizzeria owners, chefs, and industry suppliers.
- More Information: Pizza Expo
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
