Without much debate, the general consensus of what dominated restaurant headlines in 2024 proved twofold: value (inflation) and tech adoption. Naturally, those are very expansive buckets with multiple webs to spread out, whether it’s the state of the consumer amid price hikes or where a new administration might take the industry.
We’ve covered many of these projections in recent articles (see below), but let’s continue the discussion around those specific focus areas. What was this past year really like? How are you prepping for in 2025? What has value done to the guest? Where are the trends, challenges, and focus areas taking operators?
Here’s a breakdown, with insight from more industry experts.
MORE 2025 PREDICTIONS:
From Value to Starbucks’ Comeback, the Fast-Food Storylines of 2025
14 Restaurant Leaders on the Trends, Challenges, and Opportunities of 2025
The 2025 Crystal Ball for Restaurant Tech: It Doesn’t End with AI
Jared Castronova, Head of Marketing Communications, Checkmate
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
2024 marked a fundamental shift in how restaurants approach technology. The past few years focused on adding revenue streams through delivery apps and digital ordering. But in 2024, the approach evolved: using technology to eliminate tedious tasks. Look at Taco Bell’s Voice AI drive-thru tests—these aren’t just offering a new way to order; they’re freeing up staff to focus on order fulfillment and customer service. The most successful operators have realized that technology needs to do more than increase top-line sales—it must also protect margins. This shift from seeing tech as an add-on to embracing it as a core driver of efficiency is perhaps the biggest story.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
The traditional QSR value equation is under pressure, and consumers are voting with their wallets. What we’re seeing isn’t just about price—it’s about perceived worth. As brands raise prices to combat inflation, perceived value continues to decline. For the most part, fast-casual brands are the beneficiaries, offering what consumers see as a better quality-to-price ratio. While QSRs are responding with automation, the allure of a cheaper meal is losing its impact. Moving forward, customers are likely to focus less on the dollar amount and more on what they get, including the overall dining experience.
Give us your No. 1 challenge and focus area right now:
Our industry’s biggest challenge isn’t technology adoption—it’s technology unification. Restaurant staff are drowning in operational friction: juggling multiple ordering platforms, managing separate systems for dine-in and catering, and coordinating delivery services. While we’ve (mostly) solved the consumer-facing issues with sleek ordering apps and kiosks, we haven’t fully cracked the code on back-of-house complexity. The solution lies in building a unified platform that’s actually easy to manage and scale—one that integrates menu management, ordering systems, and kitchen operations. It’s not about adding more technology; it’s about making technology work better together to eliminate friction points and reduce the workload for operators.
And what do you think will be a top trend or talking point in 2025?
First, drive-thru automation will hit mainstream adoption because it attacks a crucial pain point—the drive-thru window remains the highest-revenue channel for QSRs, and Voice AI is proving it can boost both speed and accuracy.
Second, adding catering will continue to be a tactic for increasing revenue. With average tickets 10 times higher than regular orders, smart brands will build dedicated operational systems to capture this opportunity without disrupting their core business.
But the real game-changer will be intelligent kitchen systems that can juggle multiple channels while actually reducing operational complexity. The winners won’t just deploy these technologies; they’ll use them to fundamentally reimagine their operational model. Think of it as the difference between adding tools and building an ecosystem. By the end of 2025, the gap between technology-forward restaurants and technology-resistant ones won’t just show up in sales—it will determine which ones survive.
John Berberich, Managing Director of F&B Concepts at RSE Ventures
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
COVID is fully behind us, but consumer behavior that grew out of the pandemic is here to stay. It’s clear that people are still more than happy to pay up for convenience. The U.S. has seen a major resilience in consumer spending and confidence, when many in the industry believed we were heading towards a slowdown due to inflationary pressure. Black Friday and Cyber Monday spending figures showcased that consumers are still willing to spend. The one area that has seen a larger degree of pullback is in luxury shopping (the personal luxury goods market is currently seeing its first slowdown since the Great Recession), which has been driven mainly by the exposure of luxury business outside the U.S.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
As we enter 2025, the way consumers measure value in food and beverage experiences continues to evolve. Convenience remains king—if you can get it to them quickly and effortlessly, you’re already ahead. However, it’s no longer just about being the cheapest option. With rising consumer spending power, “value” has expanded to mean more than price.
Consumers are placing a premium on quality ingredients, transparency, and the story behind the product. Partnerships and limited-time offerings are also playing a critical role in driving perceived value, creating buzz and exclusivity that customers are willing to pay for. Just look at the return of beloved favorites like McDonald’s McRib and Snack Wrap, or the collaboration between Milk Bar and Portillo’s.
Today’s value equation is a blend of speed, quality, and emotional connection to the brand.
Give us your No. 1 challenge and focus area right now:
One thing on everyone’s mind is being able to sustain YoY growth from a successful 2023 and 2024. There are a lot of unknowns heading into 2025—from consumer behavior, spending habits, a changing workforce and more, all of which weigh heavily on strategic planning.
One major focus area for us this year is in commercial real estate. With everyone trying to grow, the market for commercial real estate in the food and beverage industry is extremely competitive. Securing the right locations is not just about geography—it’s about aligning with foot traffic, community demographics, and operational feasibility to create a holistic customer experience. Our goal is to be able to meet the growth metrics we’re targeting over the next year and enter new markets and reach a larger customer base. Finding the right homes for our brands will be critical in 2025.
What do you think will be a top trend or talking point in 2025?
The biggest thing to consider in 2025 is whether or not the current level of spending will be able to hold on for the next year amid economic uncertainties. Investors and entrepreneurs alike will be working to imitate the sustained success of the past year, even with consumer comments around inflation and rising prices.
Scott Finlow, Global CMO, PepsiCo Away From Home
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
It’s been an exciting year and a reminder that restaurants and marketing are never boring. If you weren’t challenged this year, then you probably weren’t paying attention, because the consumer and operator landscape has been incredibly dynamic. For starters, we recognize that consumers have been impacted by inflation and are changing their purchasing behavior. In response, we’ve collaborated with our customers to create value-driven offerings that balance demand and profitability. Two examples of this are the Luxe Cravings Box at Taco Bell and the Big Cluckin’ Burger at Applebee’s. We’ve also worked to bring value beyond price via unique partnerships and value like the Jersey Mike’s Fanatics program. We also know that consumers are prioritizing experiences more than ever and willing to spend on them. A great example of that was a partnership with Regal Cinemas to transform a theatre in Times Square into the Roman COLAsseum for the new Gladiator II movie.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
We expect some of the consumer trends and behaviors we’re seeing normalize in 2025. Value, innovation, and experience will all continue to be important. We’re focused on providing advantaged insights, products and services to help our customers drive traffic, incidence and profit to meet this new normal. Regarding value, one opportunity is to deliver value that is unique to audiences, channels and even dayparts—what we call personalization at scale. A great example of this is our Digital Labs team’s products including Menu Pro that optimizes customer menus across channels and Media Pro that tailors offers and marketing to deliver relevant value and unlock growth. We can only meet this demand by also making sure we have the right portfolio of brands and we’re dialing up our efforts around zero sugar, in particular Pepsi Zero Sugar to make this available for people everywhere.
Give us your No. 1 challenge and focus area right now:
Consumers are now the ones that are creating beverage trends and they’re creating and sharing their creations on social media. A great example of this is crafted beverages, which is exploding on Tik Tok and elsewhere and also with beverage-first retailers like SWIG. We’re energized by this trend and focused on bringing the advantages of PepsiCo to help our customers meet this demand. We are developing a crafted beverage capability that includes valuable insights and enhanced crafted drinks, in collaboration with our R&D partner. We are also gaining real-time insights and have launched a pilot product called DRIPS by Pepsi in September to get consumer and operational learnings. DRIPS offers fans a premium experience with the brands they know and love from PEPSI and MTN DEW to ROCKSTAR, featuring crafted beverages that introduced new flavors, combinations, and vibrant colors. The feedback has been phenomenal and we’re going to be accelerating our efforts in 2025—look for DRIPS by Pepsi at the Super Bowl.
And what do you think will be a top trend or focal point in 2025?
I’ve talked a lot about our national customer initiatives. We’re also dialing up our focus and support for our local restaurant partners. Neighborhood restaurants have a unique way of connecting with their diners. We also know that Pepsi makes food taste better. We’re spotlighting local restaurants through the Pepsi Local Eats program which provides significant marketing and media support and we will continue to offer new resources to further empower local restaurants to grow their customer base.
Hoyt Jones, president, Jersey Mike’s Franchise Systems, Inc.
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
For the third year in a row, Jersey Mike’s has opened about 300 stores. We expect to continue that pace for the next couple years. Part of that expansion includes three new locations in Canada. These are the first of 300 Jersey Mike’s restaurants Redberry Restaurants is bringing to the country over the next 10 years, marking the first major international expansion in our 68-year history. With lines out the door, we see that the Jersey Mike’s brand extends beyond the border.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
Our foundation at Jersey Mike’s has always been based on quantity and quality. Great service is part of the equation.
We are always looking for additional ways to improve and help our franchise owners gather insights about their business. This year, we introduced a Mystery Shopper program nationwide to provide valuable feedback to our stores.
Give us your No. 1 challenge and focus area right now:
Training is essential to ensure operationally we are delivering an excellent product and experience. We invest in extensive systemwide training, encouraging franchise owners, managers and crew members to focus on the fundamentals of our business such as red ripe tomatoes, proper meat and cheese on each sub, great tasting bread, and clean and inviting stores. This year, we conducted more than 5,000 in-store training sessions and 43 in-market sessions, along with multi-unit operator workshops, leadership experiences, and more. We expect to exceed that in 2025.
And what do you think will be a top trend or talking point in 2025?
Technology will continue to provide more options for customers (for instance, we just introduced group ordering) and offer efficiencies internally. However, it’s still the personal relationships that build loyalty. A company with a culture focused on raising up customers, franchise owners and their teams, and local community partners, will win.
Lauren Barash, chief marketing officer; Lissa Bowen, chief people officer, Full Course
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
Lauren Barash: The gap between the thriving brands and those hanging on to survive is widening and competition is fierce. The biggest take away from a brand and menu perspective is to focus exclusively on what you are great at and execute flawlessly. Be ruthless about prioritizing what gets to remain on your menu, and get right with not being all things to all people. Differentiation has never felt more important than it does now.
Lissa Bowen: Restaurants faced ongoing labor shortages but saw progress through creative hiring strategies, increased focus on employee well-being, and the adoption of technology to streamline operations. The biggest takeaway has been the growing emphasis on workplace culture and retention, as restaurants recognized that investing in their teams leads to higher job satisfaction and better customer experiences.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
Lauren Barash: Convenience and experience are redefining value. Finding innovative ways to make your food accessible will be key. Drive-thrus and delivery remain popular, but it is also worth consider subscriptions services, kiosk ordering, and hub-and-spoke real estate models. At the same time guests are looking for interesting and memorable experiences with friends and family in real life. Community tables, comfortable seating, inviting music, friendly people—people need good vibes right now. Think about moments where you feel most connected to the people you care about. So often it happens over food and at a restaurant. The new year is a good time to reflect on why we all got into this business in the first place—to serve others.
Give us your No. 1 challenge and focus area right now:
Lauren Barash: Talking to restaurant brand leaders, one of the biggest challenges they are facing is profitability. Assessing the menu strategy is a good place to start. Find menu items to remove, re-engineer or add to improve your bottom line. Looking for opportunities to bundle items or highlight add-ons is another consideration.
Lissa Bowen: One of the biggest challenges for the restaurant industry will be retaining skilled team members in an increasingly competitive labor market. To address this, restaurants will need to focus on fostering a supportive and inclusive workplace culture, prioritizing mental health, and providing robust professional and personal development opportunities.
And what do you think will be a top trend or talking point in 2025?
Lauren Barash: Food to promote wellness. Anxiety, depression and feelings of overwhelm seem to be at an all-time high. People looking to foods that offer a sense of calm, clarity and escapism will continue to gain popularity. Sugar reduction is a high priority for many consumers. Ingredients like Lion’s Mane Mushrooms (known to promote brain health) are popping up in unexpected places like bottled beverages. High sensory flavors like char, smoke and spice. It all echoes the desire for people to take care of their mental health through food.
Lissa Bowen: A top trend in 2025 will be the continued focus on employee-centric strategies to combat labor challenges and improve performance. Restaurants will adopt flexible scheduling, offer meaningful growth pathways, and invest in mental health resources to enhance employee well-being and loyalty. These strategies will help improve retention, creating high-performing teams that directly impact results in sales, costs, and guest satisfaction. As the industry recognizes the critical link between employee satisfaction and operational success, this will remain a key talking point for years to come.
Darren Spicer, cofounder of Clutch Coffee
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
The past year was exciting and competitive. More and more brands are emerging across the QSR space, aiming to compete for the same customer pool while also trying to introduce new customers to certain pockets of QSR.
Biggest takeaways:
Firstly, genuine and quick customer service will always remain as the top priorities and ways to win.
Secondly, AI will continue to be a hotly discussed topic, and companies will use it in a wide variety of ways (some for the better, some that will hinder and detract from customers experiences)
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
I think the two things that customers value the most are a) An incredible experience, and b) A fast transaction (or at least one that moves fast even if demand is high). Take Chick-fil-A as an example. Is it the best chicken sandwich of all time? Probably not, but the face-to-face interaction combined with elite speed is what customers have come to expect and are the pillars that carry the brand to be best in class.
Give us your No. 1 challenge and focus area right now:
Challenge and focus area: Building brand awareness in new markets with a young brand is a big challenge, in our specific space, we are competing against brands with a 30-plus year brand history. Building that familiarity with what Clutch is about and how we are different than the most commonly known brands is key to creating a memorable impression and building an army of clutch fans. Once we successfully build that awareness in a new market, it’s game on.
And what do you think will be a top trend or talking point in 2025?
I think the customer experience (and any personalization) that comes with that will be a key focus. The reason it will be a key trend is because a) It matters a TON, and b) we’re seeing legacy brands like Starbucks stepping up their game and making efforts to improve their service to match other competitors in the space.
Tom Woodbury, IoT Solutions consultant for Comcast’s MachineQ
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
Technology investments will accelerate as demand for leaner operations grows. We saw that this year as more operators adopted IoT, AI, and robotics to make their operations more efficient. One recurring theme we kept hearing from operators with respect to technology investments was a desire for scalable solutions that address both today’s challenges and tomorrow’s opportunities.
And what do you think will be a top trend or talking point in 2025?
Operational efficiency isn’t just a trend—it’s a constant challenge for restaurant operators striving to meet consumer demand. Kitchens are always talking, and IoT solutions allow operators to listen. By unlocking valuable insights from a wide variety of equipment in their kitchen, operators can optimize workflows, enhance food safety, and make smarter decisions. From identifying usage patterns and maintenance needs to enhancing overall performance with actionable data, this is the essence of a ‘smart kitchen.’ In 2025, restaurant operators must prioritize scalable IoT solutions to harness this data and stay ahead.
Craig Coan, partner at Greenberg Glusker
Now that 2024 is coming to a close, how would you describe the past year?
2024 was a challenging year with what seemed to be a growing divide between the “haves” and the “have-nots.” There were a lot of bankruptcies, but high-quality brands were able to get the best locations and increase pricing to cover the increased costs of operation. Hiring has been easier in 2024, in states other than California.
What were the biggest takeaways?
A big takeaway was that though food and supply chain costs went down, the fight for sales required more effort than in the past. Consumers spent less money eating out at restaurants— take-out and delivery grew, but in-store eating is down. Another takeaway is that the size of QSRs can actually be 2,000 square feet or less, rather than 3,000 square feet commonly sought in the past. Lastly, consumers seem tired of chains, and they are looking for quality and differentiation.
Let’s talk value. what’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
Consumers who are members of loyalty programs like to get discounts. They like to use apps to save time when ordering and receive incentives to frequent stores. At the same time, consumers also seem to be opening up their wallets and willing to pay a premium for quality, but the price-to-value ratio has to be right. Some QSRs get locked into discounting and don’t get the chance to move for higher quality and higher margin opportunities.
Give us your no. 1 challenge and focus area right now.
Clients have said that driving traffic to stores is a big challenge and focus. Though costs have leveled off, they need to get more sales and improve their guest experience. Construction costs are still high as many restaurants need to keep growing to justify values and stock prices. Tenants are fighting for good retail locations and rents are not going down for these locations (smaller footprints involve higher per square foot rents). Private equity and publicly traded restaurants have to grow and need to rent more spaces, and retail landlords are charging higher rents to these tenants to make up for weakness in other retail sectors.
And what do you think will be a top trend or talking point in 2025?
Some of the top areas of focus in 2025 may be restaurant technology (which has been playing a bigger role in the last few years), the need to spend money to keep the brand name relevant and competitive (e.g., greens fees), more automation coming (e.g., voice AI, robotics, etc), and the anticipated Trump deportations which could certainly impact an already constrained labor pool.
Roger Lee, partner at Stubbs Alderton & Markiles, LLP
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
2024 was a transformative year for the quick-service restaurant industry, marked by both challenges and innovation. We saw widespread adoption of technology solutions, from AI and automation to enhanced data analytics, all aimed at improving operational efficiency while delivering better customer experiences. However, the economic landscape remained challenging, with persistent labor market constraints and high interest rates creating headwinds for growth and expansion. A notable bright spot was the industry’s continued evolution toward health-conscious offerings and sustainable practices, reflecting changing consumer preferences and environmental awareness. Businesses have worked diligently to reduce waste, expand recycling programs, and meet the growing demand for healthier menu options.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experience?
As 2025 approaches, consumers in the quick-service restaurant industry are increasingly sophisticated in their definition of value, seeking a balance between affordability and quality in their dining experiences. While price remains a critical factor in decision-making, customers are unwilling to sacrifice food quality or nutritional value simply to save money. They’re demanding options that deliver on both fronts – meals that are budget-conscious yet maintain high standards for ingredients and preparation.
Give us your No. 1 challenge and focus area right now.
The industry continues to grapple with labor as its foremost challenge heading into 2025. While recruitment and retention of talent remain persistent hurdles, these challenges are further complicated by rising operational costs across the board. The industry faces the complex task of balancing fair wages and benefits to attract and retain quality employees while maintaining menu affordability for consumers – a delicate balancing act that demands constant attention and innovation.
What do you think will be a top trend or talking point in 2025?
Looking ahead to 2025, while consumer-facing technology like self-service kiosks and mobile payments continue to evolve, the most significant technological advances in the quick-service restaurant industry are happening behind the scenes. Back-of-house innovation, particularly in the realm of data analytics, is transforming how restaurants operate. These systems are revolutionizing inventory management and demand forecasting, allowing restaurants to make more informed decisions based on customer behavior patterns. While many operations have already embraced basic digital solutions like mobile ordering and contactless payments, the next frontier lies in leveraging technology to enhance operational efficiency and reduce costs.
Joey Cioffi, CEO/Founder at Salad House
What would you say is your biggest challenge right now and going into next year? Biggest opportunity?
Our biggest challenge right now, and likely into next year, is the rising cost of goods—especially food prices. The market volatility is unprecedented, unlike anything I’ve seen in my years in the industry. Maintaining a commitment to serving quality food becomes a constant balancing act in this climate.
On the opportunity side, it’s hard to pinpoint just one, but several key areas stand out. We have a tremendous chance to drive franchise growth and success. Starting 2024 with 13 locations, we’ll close the year with 20. This includes our first site outside of New Jersey in Brooklyn, New York, and a deal for up to 10 locations across Virginia. Our growth is due in large part to our dedicated franchise partners. We’re deeply committed to their success because, ultimately, their achievements fuel ours.
Another exciting opportunity is our unique position in the healthy eating space. More consumers are prioritizing health but don’t want to compromise on taste or satisfaction. We aim to make healthy eating feel more inclusive, as eating well shouldn’t mean eating alone. For example, it can feel isolating to stick with a healthy meal in an office setting if others are ordering different types of food. With our make-your-own salads, smoothies, and satisfying sides like Buffalo Poppers, we offer variety and flexibility that fits individual preferences without compromising social inclusivity.
Catering is also a unique avenue for us, particularly in office settings. Our menu includes a wide range of healthful, filling options that meet diverse dietary needs—all typically under $10 per person. It’s a practical way for workplaces to offer energizing meals that keep people fueled without the usual post-lunch slump often associated with catered meals.
How would you characterize the health of the restaurant consumer?
The economy is still a factor for many people. Groceries are still expensive, and no one likes wasting food they bought but didn’t have time to eat. With people working longer hours, they’re increasingly looking for convenience and value in their dining options. To that end, we’re also seeing more families dining out or ordering in than ever before.
Fast-casual dining is outpacing the industry as a whole as consumers gravitate to that segment of the restaurant space. Placer.ai data from April 2024 showed fast casual concepts have experienced year-over-year visit increases every quarter since Q1 2023. More people are opting for healthy, customizable options, and digital ordering is growing, which is a huge opportunity for fast-casual brands like ours. Further, health-focused brands are winning when it comes to longer customer loyalty, and that’s a trend we’re embracing.
Give us your No. 1 trend for 2025, whether menu-related, tech, or something else.
For 2025, I’d say the top trend will be achieving a healthy balance when it comes to the food you eat. I remember back to the pandemic and comfort food was often a go-to. It was something people could enjoy in such a crazy time in our lives. Now, consumers are increasingly looking to options that support their health without being extreme in any one direction. I liken it to the growth in the non-alcoholic beverage space. People still want to taste a great beer, but maybe they want one with lower ABV or no alcohol. It’s about finding that middle ground where healthy choices don’t feel like a compromise, and still give you a satisfying, enjoyable experience.
Misty Chalk, vice president, Americas at BrightSign
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
Resilience was a strength for QSRs, as was the ability to move forward with planned openings, renovations, and digital transformations. Many of the big name QSRs saw success with order accuracy and speed. The evolution of digital menu boards and connected drive-thru systems, for example, allowed QSRs to stay ahead of order availability, update items in real time, and give servers the opportunity to focus on delivering a seamless experience versus correcting orders. This is now table stakes. QSRs have proven that accuracy and fulfillment can be done at speed with the help of technology ¾ and this is now an expectation.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
Meeting higher consumer expectations and making QSRs feel like “finer” dining options are atop the list of conversations. A large part of this equation is personalization, leveraging interactive, self-service, and sensor-based technologies to provide premium experiences regardless of how a customer chooses to order or dine. The experience should be memorable, whether engaging with a self-serve kiosk or talking to a staff member behind the counter. Consumers work hard for their money and that shouldn’t be underestimated. Younger patrons seek social engagement and are connected to brands that offer new and fun experiences. Frequent diners expect their loyalty to be rewarded with specials, bonuses, and benefits. The days of the old QSRs are gone. The digital transformation of QSRs is here: fun and engaging dining experiences, personalized ordering and fulfillment for patrons, and providing a venue for a new generation of consumers to create moments that matter to them. QSRs that can make this a reality should see continued success.
Give us your No. 1 challenge and focus area right now:
QSRs, fast casuals, and restaurants of all sizes are trying to do more with data—and act faster with data to improve the customer, worker, and dining experience. Businesses are asking how they can digitize to maximize operations and do a better job capturing, understanding, and using data. From our perspective in the digital signage world, every touchpoint is a critical moment in each customer’s journey. From advertising displays to digital menu boards, to the self-serve kiosk, to the touchscreen linked to a POS, and many more along the way. All are opportunities for businesses to better understand the customer and personalize an experience.
And what do you think will be a top trend or talking point in 2025? The impact of AI, IoT, and sensor-based technologies at each touchpoint in the QSR customer journey. The digital signage industry has matured. As we’ve seen in 2024, preventing a poor experience is just as important as delivering a great one. Digital signage solutions are connection points with customers—a source of information, a mechanism to place an order, a timely deal to save money. Technology that can make this possible—while being reliable, secure, and easy to manage—will win the day.
Jeffrey Pielusko, Managing Director at Carl Marks Advisors
2024 Takeaways
We have seen a greater focus on cost management and value
In 2024, an increase in food and labor costs reduced profits and pushed some less efficient operators over the edge.
Consumers are increasingly price-sensitive, so value-meal pricing, loyalty programs and transparent costs are becoming crucial.
Labor challenges and retention have continued to be an important focus for restaurant operators
During 2024, higher labor costs and retention difficulties persisted. These challenges were especially pronounced in the full-service restaurant segment.
Restaurants are making more efficient use of technology, including self-order kiosks, QR code menus, reservations platforms, smart ovens and grills, and inventory management software to increase flexibility and productivity to address labor challenges and retention issues.
Automation and AI have continued to be important areas of investment
Increased use of automation and digital tools can mitigate labor costs and improve operational profitability.
We have seen a reduction of the use of third-party delivery apps. Use of in-house systems can improve margins and promote customer loyalty.
Off-premises and delivery have continued to be important channels
Delivery and takeout services remain strong growth areas and will likely increase as consumers remain sensitive to prices.
Streamlining the online experience and maintaining affordable delivery fees are vital as customers increasingly expect convenience and efficient experiences.
2025 Outlook
The industry will face continued financial strain
We should expect to see continued financial strain into 2025. The headwinds (inflation, rising labor costs, elevated interest rates) that restaurants faced in 2024 are likely to persist in 2025.
The impact of interest rate cuts on labor
Indications from the new administration regarding tariffs and illegal immigration – which may result in higher pricing and a smaller labor pool – are becoming real concerns for operators who may see labor costs increase without the benefit of meaningful rate cuts in 2025.
Value and price will be critical
Value and price will remain hot button items for consumers in 2025. The 2024 election demonstrated that consumers are hyper focused on the economy and rising prices. In the year ahead, operators who can continue to innovate in an environment where customers are price sensitive will be the winners.
Off-premises sales will continue to accelerate
There will be continued growth of off-premises sales, given the added expense of sit-down eating. This will benefit the fast-casual and quick-service chains and may result in the increased adoption of more efficient direct delivery models that offset high third-party fees.
Unique offerings will be an important strategic differentiator
In 2025, operators that offer a unique product in a price sensitive environment will be winners. Winners will likely include QSR and fast-casual brands that can remain competitive on pricing without sacrificing the customer experience. Full-service brands that are less price competitive, will need to provide a unique well executed experience, as their consumer base is likely to continue to shrink. Expansion of off-premises and delivery for full-service restaurants that doesn’t sacrifice quality will also be important.
Bruno Cardinali, Global CMO of OAKBERRY
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
It was a very successful year for OAKBERRY, as we continue our expansion both in the US and internationally. We are also seeing more and more people become, as we like to call it, OAKERS. True brand fans who support both our products and our focus on living an active lifestyle.
2024 also felt like a real milestone for our brand. Customers continue to better understand the differentiators of OAKBERRY, and we learn more and more as we expand our presence in more markets around the U.S.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
There is a hopeful sense for the industry as we head into 2025. At the same time, the consumer is very conscious about the types of experience they want to celebrate and will support the brands and moments that have meaning. For the QSR industry specifically, I think there is the need and desire for authentic experiences. This will continue to prevail, both in terms of product as well as branding. Is the product delicious and do I gravitate to how I feel when I’m engaging with a brand.
Give us your No. 1 challenge and focus area right now?
We are fully focused on building an incredible brand through every single touch point, every single day. The small details and interactions count a lot. So, our full focus is to make every one count.
And what do you think will be a top trend or talking point in 2025?
I think that we’ll see more unexpected products and brand collabs. Additionally, I expect authentic experiences to be even more important in the year ahead.
Noah Hayes, VP of Americas at Deliverect
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
As 2024 comes to a close, it’s clear the year was defined by QSRs prioritizing practical, margin-boosting technologies over flashy, unproven innovations. This focus on operational efficiency and customer experience proved critical in navigating rising costs and evolving consumer expectations.
Self-order kiosks emerged as a standout tool, increasing average order value, streamlining operations, and improving guest satisfaction—with increased adoption by brands like Yum and Bojangles. Heated food lockers also gained traction, with Pizza Hut integrating them into its latest store design, following the innovation path set by Little Caesars.
Many QSRs also turned their attention to upgrading the core systemsimplemented during the pandemic’s delivery boom. Enhancements to off-premise order handling, menu management, and performance reporting became key priorities. Solutions integrating delivery, real-time data, and location insights proved invaluable, as seen in McDonald’s use of location data to optimize operations and elevate the customer experience.
2024 reinforced that success lies in leveraging practical tools that drive profitability, streamline operations, and enhance flexibility, setting the stage for continued growth in 2025.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
As 2025 arrives, the way consumers measure value in QSR experiences continues to be shaped by ongoing economic pressures. Rising costs of goods, labor, and persistent inflation have created a dual challenge: consumers are seeking lower prices, while operators must protect profitability.
To adapt, QSRs are getting creative.
- Many are focusing on menu innovation and bundling strategies that deliver perceived value without eroding margins.
- Investments in operational efficiencies—like automation and optimized supply chains—are also helping to manage costs.
- Loyalty programs and personalized promotions have become essential for retaining price-sensitive customers and driving repeat visits.
The younger generations are a key demographic shaping this landscape. For instance, 63 percent of Gen Z regularly use food delivery apps as compared to 51% of Millennials, for example. Our own research found that 60 percent of Gen Z would switch brands for better loyalty rewards alone. These are all factors that QSRs must consider as they work to keep up with shifting perceptions around value in 2025 and beyond.
Give us your No. 1 challenge and focus area right now:
Simplifying tech stacks is a critical challenge for global restaurant brands striving to drive efficiency and innovation across markets. With deep experience supporting some of the world’s largest names and a presence in 52 countries, we’ve seen how unified technology can transform operations at scale.
Fragmented systems often slow progress, but we’ve worked with brands to streamline their core systems, enabling them to implement consistent improvements worldwide.
This includes:
- Menu Management Enabling real-time adjustments across regions for local relevance and global consistency.
- Delivery Optimization Enhancing communication between kitchens, couriers, and customers to improve efficiency.
- Unified Insights Consolidating performance data to identify trends, address challenges, and replicate success worldwide.
Simplifying the tech stack is about more than efficiency—it’s about enabling QSRs to adapt and innovate faster, meeting customer needs in every market they serve.
And what do you think will be a top trend or talking point in 2025?
From our experience working with global QSR brands, we’ve seen how real-time insights and operational automations directly impact profitability.
Tools like our Pulse platform, which provides real-time store performance data across all delivery apps and automates processes to reduce downtime and lost revenue. These solutions are becoming essential as QSRs navigate the complexities of multi-channel operations and strive to maintain margins in a challenging economic climate.
Beyond operational improvements, leading QSRs are exploring bold new concepts to diversify their portfolios. Many are launching drink-focused outlets to meet consumer demand and grow market share, for example, KFC’s Ssaucy!––a spinoff focused on expanded sauce and beverage selection––McDonalds’ CosMc, and Taco Bell’s Live Mas Cafe.
This blend of innovation and expansion positions QSRs to not only maintain profitability but also adapt to changing consumer preferences, ensuring they remain competitive in an increasingly dynamic market.
James Burdette, senior director of the Enterprise Process Innovation Center, Panasonic Connect North America
Now that 2024 is coming to a close, how would you describe the past year? What were the biggest takeaways?
The year of the drive thru. In an environment where consumer moods and expectations change so quickly, QSRs needed to be ready to step up to the plate and make themselves attractive options for diners of all demographics. The drive thru proved a critical part of the QSR experience as more people returned to office, cars hit the road for trips and travel, and flexible schedules meant anytime dining or “snacking” was prominent. Furthermore, consumers expect that the same, near-touchless drive-thru experience will translate in-store. For example, using apps or self-serve kiosks to order and pick up with minimal physical engagement. QSRs that were equipped with the right systems saw success, with leading brands winning in terms of order accuracy and the speed at which orders were fulfilled.
Let’s talk value. What’s the state of the consumer as 2025 arrives in terms of how they’re measuring value in their QSR experiences?
Consumers expect to engage their way on their time, and have their needs be catered to, whether digitally or in-person. Poor experiences won’t cut it. So, any tech deployments made across the QSR should be done with consumer experiences in mind. In 2025, personalization will be at the heart of conversations and central to QSR’s endeavors to win over or retain customers. The industry has made strides in self-serve, touchless, and pay-anyway ordering and pick up. This trend will continue, but consumers will soon expect that at each touchpoint, the experience is personalized based on their order history, dining preferences, etc.
Give us your No. 1 challenge and focus area right now:
In keeping pace with changing consumer preferences, one of the biggest challenges will be QSRs being able to run “all day” or “anytime” dining. To run this type of operation effectively, all areas of the business must be connected—from drive thru, to menu boards, to back-end order systems, to staffing rotations, to food availability. As a result, QSRs are looking for holistic technology solutions that work in harmony to deliver the ultimate consumer experience, while remaining operationally efficient to speed up orders, eliminate food waste, and augment staffing. QSRs won’t do this alone and will rely on the support of technology and integration partners to ensure seamless user experiences and to realize faster time to value on technology investments. Vendors that have strong networks and can play a central role in offering hardware, services, and support in one or few packages will succeed as QSRs look to simplify or streamline operations.
And what do you think will be a top trend or talking point in 2025? Efficiency. Keeping pace with consumer preferences or being able to cater experiences to a wider range of consumers are hot topics of conversation. It all comes down to personalization and choice. How we get there takes on more complexity ¾ whether customized menu options based on who a kiosk senses is operating it, or using AI to augment audio and visual ordering, or even automated digital signage or menu boards that update based on sensors that can determine temperature, time of day, or traffic levels. Most importantly, QSRs must maintain speed, accuracy, and choice when it comes to meeting consumer’s dining needs. Once that foundation is set, look for incremental technological deployments that can add value across the business.
