US restaurateurs shift focus to profitability as inflation bites

Core Insights - US restaurant operators are increasingly focusing on profitability and guest demand due to rising costs and workforce challenges, with 40% identifying profitability as a primary objective, a 5 percentage point increase from 2024 [1] - Boosting customer demand or traffic is also a key goal for 29% of operators, reflecting a 6 percentage point rise from the previous year [2] Operational Challenges - Inflation, marketing, and hiring are the main operational challenges faced by restaurant operators, with 20% ranking inflation as their top pain point, while 16% cited marketing and hiring staff [2] - Nearly half (48%) of restaurants indicated they would raise menu prices if inflation continues, a necessary measure to protect margins [3] Margin Preservation Strategies - Operators are employing various strategies to maintain margins, including conducting profit analysis (38%) and switching food suppliers (31%) [3] Labor Market Pressures - Labor pressures have intensified, with 41% of operators reporting moderate to extreme hiring challenges, an increase from 35% in 2024 [4] - In response, 47% of operators are focusing on improving staff efficiency, and 42% are prioritizing new retention strategies [4] Technology Adoption - There is a significant comfort level with AI among operators, with 86% expressing comfort in using it and 81% planning to increase its usage in the future [4] Survey Details - The survey collected responses from 712 restaurant decision-makers operating 16 or fewer locations across the US, including both Toast and non-Toast customers, conducted between April 18 and May 13, 2025 [5]