• Restaurant operators say food prices have increased 29% year over year, on average
• 40% of operators are reducing food and beverage spend
• Nearly two-thirds of restaurant operators believe tariffs will weaken sales

ATLANTA, Nov. 18, 2025 /PRNewswire/ -- Amid escalating food and labor expenses and a slowdown in consumer demand, 85% of restaurant operators say they are competing more fiercely for every guest this year. Many are embracing new approaches to their menus, marketing, and technology—shaping the overall dining experience.

This is according to a recent nationwide study of 300 U.S. restaurant leaders by Popmenu, a tech leader serving more than 10,000 restaurants.

"Ongoing concerns around inflation, trade wars, weaker consumer spend and other economic headwinds are prompting restaurant operators to take actions that protect margins and profitability," said Brendan Sweeney, CEO and Co-founder of Popmenu. "This includes everything from reducing food and labor costs to diversifying revenue streams and marketing channels and engaging new suppliers. Consumers may see fewer menu options or changes to dishes, more meal deals and more tech-driven experiences at their favorite eateries."

Read the full report here.

Prime costs are eating into profits

On average, restaurant operators say food prices have increased 29% compared to last year. Labor costs have increased 23% in 2025 after climbing 33% in both 2024 and 2023.

Where restaurants are cutting back

Restaurants and consumers alike are tightening budgets. Popmenu's nationwide survey of 1,000 U.S. consumers earlier this year found that 61% are decreasing spend on restaurants. Consumers spend $115 on restaurants weekly, on average.

The majority of restaurant operators (82%) are actively lowering expenses—impacting their staffing levels, the dishes and drinks they serve, ambiance and more. Reductions include:

• Labor – 58% of operators
• Food and beverages – 40%
• Decor – 25%
• Equipment – 25%

Other ways operators are tackling prime costs

Reducing food waste is a big focus for restaurants who want to stretch their food budgets. Operators are also considering new suppliers, 86-ing less profitable dishes from their menus, consolidating tools, and leaning on software to manage costs and productivity.

• Minimizing food waste – 76% of operators
• Exploring alternative suppliers – 68%
• Using cost management/inventory software – 40%
• Removing low-margin dishes – 38%
• Consolidating tools and costs – 30%
• Using tech to make staff more efficient – 25%

How restaurants are growing sales

To stay resilient in less-than-certain times, operators are stepping up their marketing game with more frequent and customized messaging and running special offers.

• Increasing and personalizing outreach to guests – 55% of operators
• Investing more in marketing – 48%
  • 28% post on social media every day while 51% post a few times a week
  • 42% message guests every week; 64% send emails automatically
• Running limited-time offers – 44%
• Hosting special events – 44%

Half (51%) of restaurant operators currently use AI to help with marketing while 29% plan to going forward.

Economic outlook

Looking ahead, 64% of operators believe U.S. tariffs will weaken sales. Another 64% fear a recession will hit over the next 12 months.

Survey Methodology

Popmenu conducted an anonymous survey of 300 restaurant owners and operators across the U.S. from August 12 to September 19, 2025. The survey represents restaurants of different types and sizes.

About Popmenu

As a leader in restaurant technology, Popmenu is on a mission to make profitable growth easy for all restaurants. Digital marketing, online ordering, and on-premise technologies headline a powerful product suite infused with artificial intelligence (AI), automation, and deep data on guest preferences. The company consolidates tools needed to engage guests, serving as a digital control center for more than 10,000 independent restaurants and hospitality groups in the US, UK, and Canada. For more information, visit popmenu.com.

Media Contact:

Jennifer Grasz
VP of Marketing, Popmenu
Jennifer.Grasz@popmenu.com

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SOURCE Popmenu Inc.