MRM Research Roundup: Holiday Spending, Franchise Optimism, and Pickle Energy

This article first appeared in Modern Restaurant Magazine.

Restaurant leaders representing more than 6,200 locations shared 2024’s top challenges and opportunities and their 2025 priorities in Restaurant365’s annual industry survey.  Those priorities include increased marketing and sales efforts alongside new benefits and programs to attract and retain staff.  

Participants reported continued food and labor cost increases, with 88 percent experiencing rising staff expenses, compared to 89 percent in last year’s annual survey, and 86 percent reporting an increase in food costs. For those with rising labor, 51 percent reported a 1 percent to 5 percent increase, 41 percent experienced a six percent to 14 percent increase, and 8 percent saw labor costs rise more than 15 percent. The most significant impact was on restaurants’ ability to achieve their maximum potential, with 59 percent of respondents saying labor challenges led to operating below full capacity.  

For food, 53 percent reported a 1 percent to 5 percent jump, 37 percent saw a 6 percent to 14 percent increase, and 10 percent saw a more than 15 percent rise. The primary response was menu price increases, with nearly 61 percent of respondents adjusting prices to cope with the new reality.   

Restaurant leaders expect waves in the year ahead, with 32 percent pinning recruitment and retention as their top challenge, 27 percent most concerned about rising food costs, and 21 percent flagging sales volume as the main hurdle.  

Despite potential challenges, the industry is both optimistic, as total restaurant sales crested $1 trillion for the first time on record, and ready to pivot to continue growing.   

Read the full article in Modern Restaurant Magazine.