James Beard Foundation Releases 2025 Independent Restaurant Industry Report
An industry at inflection as it faces challenges across multiple fronts. In collaboration with Deloitte, the report is a nationwide study providing a data-driven look at the current state of independent restaurants and their outlook for 2025, examining factors from rising costs and labor challenges to shifting consumer behavior. “This year’s report underscores the resilience, tenacity, and ingenuity of independent restaurants in the face of mounting pressures,” said Clare Reichenbach, CEO, James Beard Foundation. “While encouraging signs exist, the industry continues to navigate an increasingly complex landscape. We remain more committed than ever to supporting these vital businesses—the backbone of local economies and communities—by providing training and resources to build business resilience, as well as championing and spotlighting our industry across all our platforms.” Despite substantial challenges, the report reveals an industry demonstrating remarkable fortitude and innovation. Through strategic adaptation and creative problem-solving, independent restaurants are actively evolving their operations to meet current market demands, while preparing for future uncertainties. The study identified four major trends that are reshaping the industry landscape:
- Overcoming barriers to increase guest spend
- Intentional engagement to deepen guest connection
- New ways to attract and retain a winning team
- Increased urgency to evolve business models
The research findings stem from in-person chef interviews and a nationwide survey of over 400 restaurant owners and operators conducted in 2024. The study represents a broad cross-section of the independent restaurant industry—spanning 47 states and all four census regions—with respondents ranging from fine dining establishments to fast-casual venues, breweries, and caterers…
The Cheesecake Factory Defies Industry Trends
Sets growth record in 2024. After opening a record number of restaurants in 2024, the company is gearing up for even more growth in 2025. The Cheesecake Factory wrapped up fiscal 2024 on a strong note, outperforming industry benchmarks in both comps and traffic. It also opened more new restaurants in a single year than ever before in its history. And the growth will only continue in 2025. The company opened 23 stores last year. Nine of the openings came in Q4, including two Cheesecake Factories, three North Italias, two Flower Childs, and two others under Fox Restaurant Concepts. For 2025, it plans to launch 25 new locations across all brands, with three to four Cheesecake Factories, six to seven North Italias, six to seven Flower Childs, and up to nine Fox restaurants. Comps were up 1.7 percent at the company’s flagship full-service brand, with restaurant-level margins climbing to 18.4 percent—the highest they’ve been in more than seven years. CEO David Overton said customer satisfaction scores have reached record levels, too. The Cheesecake Factory finished 2024 with 215 U.S. restaurants. The results are notable given the challenges many restaurant chains have reported in early earnings calls this year. Many said harsh weather and rising inflation have made consumers more cautious about dining out. “I wouldn’t say that we see that in the data today,” CFO Matt Clark told investors Wednesday, noting that the company would be able to parse it out if that was the case. “I think people still want to go out and have experiences regardless. So, if they’re cutting back, it might be more on the quick-serve side”…
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The Future of Guest Experience
Personalization, Predictive Menus, and Seamless Interactions. Imagine walking into your favorite coffee shop, groggy and desperate for caffeine. You tap a kiosk, customize your latte in seconds, and breeze past the line to grab your order. No waiting, no misunderstandings, just coffee in hand. Now, compare that to standing in a slow-moving line, reciting your order three times, and hoping it comes out right. Which experience makes you want to come back? Seamless, intuitive user interfaces (UIs) aren’t just a nice-to-have; they’re the backbone of modern customer loyalty. Whether it’s a self-service kiosk, a mobile app, or a drive-thru ordering screen, the way customers interact with technology determines their overall satisfaction. The easier the experience, the more likely they are to return. The more frustrating, the quicker they’ll jump ship to a competitor. This article dives into how great user interfaces keep customers coming back for more. From effortless ordering to a sense of control and personalization, a well-designed UI doesn’t just make things easier—it builds loyalty with every tap, swipe, and click. A well-designed UI eliminates friction, making transactions fast, accurate, and effortless. Friction, in this context, is anything that slows down or complicates the customer journey—poor layout, excessive steps, unclear instructions, laggy response times. These minor inconveniences add up, creating a frustrating experience that drives customers away. Take, for example, the evolution of airport check-ins. Not long ago, travelers endured long lines just to get a boarding pass. Then came self-check-in kiosks, dramatically cutting wait times. Now, with mobile apps and biometric scanning, some passengers can breeze through without ever interacting with a human. The common thread? Each technological step refined the user interface, reducing friction and boosting customer satisfaction. The same principle applies to restaurants, grocery stores, and retail. The faster and smoother the process, the happier the customer…
From Empty Tables to Full House
Expert advice on avoiding restaurant no shows. Restaurant no-shows are a silent killer of hospitality profits. No-shows plague the UK hospitality industry, with 12-14 percent of restaurant reservations going unfulfilled, resulting in an estimated £17.6 billion in annual revenue losses, according to Zonal and CGA’s GO Technology report. The research also highlights that the 18-34 age group is the most frequent offender, creating significant financial challenges for restaurants and venues. No-shows create a cascading economic challenge for restaurants. Beyond the immediate lost revenue from empty reserved tables, these missed bookings disrupt carefully planned kitchen and staffing operations. Restaurants prepare ingredients and schedule staff based on anticipated guest numbers, and when diners fail to arrive, this precision quickly unravels into wasted food and unnecessary labor expenses. For smaller establishments, the stakes are even higher. With limited seating capacity, even a couple of absent parties can transform a potentially profitable evening into a financial loss, pushing these already vulnerable businesses closer to the margins of financial health. To combat the issue of no-shows, restaurants and merchants can implement several effective strategies. Modern technology has reinforced the hospitality industry, providing innovative tools to automate and simplify the challenge of managing no-shows. Businesses can now utilize reservation platforms that seamlessly integrate booking, point-of-sale (POS), and customer management systems. These platforms enable businesses to track reservations, send reminders, and handle deposits with ease, optimizing the booking process and enhancing operational efficiency. Even basic technologies, such as payment links, enable merchants to securely request reservation deposits. These links can be sent via SMS, email, or social media, creating a smooth and convenient experience for both businesses and customers. This not only offers businesses a layer of financial security but also simplifies the process for their guests…
Independent Restaurants Are Actively Evolving
The study identified four major trends. Independent restaurants are at a pivotal moment, as the industry confronts multiple challenges including inflation, cost volatility, and extreme weather and adapts to an increasingly complex operating environment, according to the findings of the James Beard Foundation® (JBF) 2025 Independent Restaurant Industry Report. The research stems from in-person chef interviews and a nationwide survey of more than 400 restaurant owners and operators spanning 47 states with respondents ranging from fine dining establishments to fast-casual venues, breweries, and caterers. “This year’s report underscores the resilience, tenacity, and ingenuity of independent restaurants in the face of mounting pressures,” said Clare Reichenbach, CEO, James Beard Foundation. “While encouraging signs exist, the industry continues to navigate an increasingly complex landscape. We remain more committed than ever to supporting these vital businesses—the backbone of local economies and communities—by providing training and resources to build business resilience, as well as championing and spotlighting our industry across all our platforms.” Business performance improved slightly in 2024, with 54 percent of respondents reporting positive results compared to 46 percent in 2023. Only 14 percent of respondents described business performance as poor/very poor, which was down from 23 percent in 2023. Despite a backdrop of significant challenges, this shift suggests a more optimistic outlook among restaurant owners and operators. Rising food, labor, and general operating costs were the most pressing concerns in 2024 among respondents, further tightening thin margins. Because of this, 55 percent of respondents increased prices on their entire menu, 36 percent increased prices on a few items, and only 6 percent made no menu changes. Most increases were between 5 percent and 10 percent—on average a less significant increase than in 2023…
Why Your Restaurant is Invisible Online
How to fix it before it’s too late. The restaurant industry is facing unprecedented challenges and opportunities in maintaining visibility online, where the majority of local consumers go for information and recommendations. SOCi’s 2024 Local Visibility Index (LVI) reveals that the U.S. restaurant industry risks losing approximately $6.9 billion in revenue every year due to inadequate digital engagement across key consumer channels such as search engines, social media platforms, and review sites. To remain competitive, restaurants must understand how consumer search behavior is evolving and adapt their tactics accordingly. No longer are customers relying solely on traditional keyword-based searches for terms like “restaurant near me;” instead, they’re using natural, conversational language to find exactly what they want. This shift demands a new approach to local marketing – one that prioritizes and enables nuanced queries, hyper-local engagement, and AI-powered discovery. A study by Ahrefs analyzing about 150 million keywords found that 63.1 percent of searches were non-branded. This means most customers search for unbranded terms like “best seafood restaurant near me” rather than searching for restaurants by name. By incorporating non-branded keywords into their website, menu descriptions, and online listings, restaurants can capture more organic traffic and improve visibility in local searches. What’s more, modern consumers, encouraged by the sophistication of modern search engines and AI platforms, increasingly use precise, conversational searches like “best gluten-free pizza near me,” favoring highly specific results tailored to their needs. To capture this demand, restaurants must optimize their digital content with detailed, keyword-rich information across multiple platforms. The differentiating features you want your restaurant to stand out for must be showcased in your online profiles and local landing pages, or you risk becoming invisible in nuanced keyword searches because you haven’t made relevant info available…
Did You Know?
Finding New Purpose Through Repurposing Space. When doors close, windows of opportunity open with vacant real estate providing new homes for growing F&B brands. According to the hospitality experts at Washington D.C.-based architecture and design firm //3877, newly-available real estate offers prime locations and cheaper rent for fast casual restaurants such as taco shops and upscale burger joints. By repurposing the existing infrastructure of the vacant buildings, restaurateurs can bring about new concepts with ease. Many vacated properties already include essential elements including plumbing lines, ventilation systems, and kitchen layouts, which can significantly reduce the cost and time associated with establishing a physical space…
Employee Tip
Safety Countdown: What Restaurant Managers Need to Know Now. Better food safety has never been more in reach, thanks to advancements in traceability standards and technology. With the January 20, 2026 compliance deadline for the U.S. FDA’s Food Safety Modernization Act (FSMA) Rule 204 approaching, restaurant operators stand to gain improved confidence in the safety and quality of the food they serve. While the rule targets all links in the supply chain such as manufacturers and distributors, its ripple effects can empower restaurants to respond more effectively to food safety concerns and strengthen customer confidence…
