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Daily Newsletter

13 October 2025

Daily Newsletter

13 October 2025

US restaurateurs shift focus to profitability as inflation bites

Almost half of those surveyed (48%) would raise menu prices if inflation persisted.

Satarupa Bhowmik October 10 2025

Restaurant operators in the US are placing greater emphasis on profitability and guest demand as they confront rising costs and workforce difficulties, according to a survey from restaurant technology provider Toast.

Toast’s 2025 Voice of the Restaurant Industry survey found that 40% of the respondents highlighted increased profitability as a primary business objective, up five percentage points from 2024.

29% identified boosting demand or customer traffic as a key goal - a rise of six percentage points on the previous year.

Inflation, marketing and hiring were cited as the main operational challenges.

Twenty percent of the respondents ranked inflation as their top pain point, while marketing and sourcing or hiring staff were both selected by 16% of operators.

Almost half of restaurants (48%) said they would raise menu prices if inflation persisted, a move described in the survey as a necessary measure to protect margins.

The survey stated: “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."

Other margin-preserving tactics reported included conducting profit analysis (38%) and switching food suppliers (31%).

The survey found that labour pressures have intensified.

About 41% of operators reported moderate to extreme hiring challenges, up from 35% in 2024. In response, 47% are concentrating on improving staff efficiency and 42% are prioritising new retention strategies.

Operators expressed considerable comfort with AI. Of those surveyed, 86% said they were comfortable using it and 81% reported plans to increase its use going forward.

The survey collected responses from 712 restaurant decision-makers operating 16 or fewer locations across the US, including both Toast and non‑Toast customers.

Data were gathered between 18 April and 13 May 2025 and was drawn from a mix of full‑service and quick‑service operators.

In December 2024, Toast was in the headlines for expansion of its alliance with Uber Technologies.

The move helps US restaurants lower delivery fees and extend service radius.  

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