Restaurant365's Restaurant Survey Shows Labor, Sales Challenges Top 2025 Hurdles

This article first appeared in Fast Casual.

Food and labor costs increases continue to plague restaurant leaders, with 88% experiencing rising staff expenses compared to 89% in a study last year.

That was among the findings of Restaurant365‘s annual industry study, according to a press release. Restaurant365 is a back-of-house accounting, inventory, workforce management and payroll solution developed specifically for the restaurant industry.

For those with rising labor, 51% reported a 1% to 5% increase, 41% experienced a 6% to 14% increase and 8% saw labor costs rise more than 15%. The most significant impact was on restaurants’ ability to achieve their maximum potential, with 59% of respondents saying labor challenges led to operating below full capacity.

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

Read the full article in Fast Casual.