What Will Thrive in 2025

In 2024, the foodservice industry experienced its first slowdown since the pandemic. The outlook for 2025 is brighter as operators fully activate novel pricing tactics and spur on new product introductions that drive guest frequency and check average. Innovation addressing real-world needs will thrive, especially those that cover cost efficiency, labor management and customer experience. Menu innovation will take center stage as consumers continue to seek unique and adventurous experiences when dining out. Read ahead to discover Technomic’s 2025 U.S. foodservice expert predictions.

Hope on the Horizon

Following a challenging year of declining traffic amid high inflation, 2025 holds the promise of a modest recovery. Expect lower inflation and interest rates to boost consumer confidence, while greater operator focus on promotional efforts will encourage more frequent foodservice purchases. As the population matures, we’ll see more multigenerational strategies that increasingly resonate with younger diners to drive traffic and build loyalty while also catering to an aging customer base. Together, these factors will restore a more normal growth cadence and much welcomed stability for the industry.

Pricing Gets a Reboot

Menu inflation undoubtedly created traffic turmoil in 2024. To counteract high pricing, operators rolled out various discounts and deals with mixed results. In the coming year, we’ll see a return to normal pricing tactics as restaurants work to reset their value equations and win back customers. Expect price setting to be more in line with pre-pandemic inflation rates, new menu launches to rely less heavily on discounts and marketing communications to emphasize strong everyday value. With food-at-home inflation already returning to pre-pandemic norms, the risk of not resetting pricing strategies will be too great for operators to ignore.

Stronger M&A Movement Ahead

Mergers and acquisitions within foodservice are set to rise. As the industry rebounds, distributors will seek this activity to expand into new geographic regions, segments and categories. Additionally, restaurants are poised for a notable increase in M&A efforts, fueled by declining interest rates creating a more favorable environment for chains to pursue aggressive expansion. This wave of mergers and acquisitions will reshape the foodservice landscape, resulting in a range of implications—from fewer supply sources to consolidated restaurant groups with greater purchasing power.

Beverages Gain Steam

The nonalcohol beverage boom will accelerate in 2025. We’ll see a surge in beverage-forward business models that capitalize on smaller footprints, fewer equipment needs and lower labor costs to boost profitability. Following recent fast growth in the beverage chain segment, expect other chains to ramp up innovation in this space. Consumers will increasingly favor beverages for their convenience, customization and cost-effectiveness. And the versatility of these drinks will lead to novel formats and flavors that take inspiration from global trends (e.g., boba, etc.), functional ingredients (e.g., mushrooms, etc.), and seasonal flavors that extend beyond the typical pumpkin spice and peppermint. Look especially for more operators to promote limited-time drink offerings designed to create buzz and a sense of urgency.

Cultivating Connections

While automation technologies, kiosks and order-ahead pickup have been good stopgaps for labor supply problems, they have come at the cost of staff complacency and neglected service standards. In 2025, restaurants will strike a better balance between the human touch customers crave and the operational efficiencies that technology offers. Look for operators to redefine service fundamentals, especially placing greater emphasis on friendly service and restaurant cleanliness. This renewed approach will aim to encourage consumers to think of restaurants as a welcoming “third place” to unwind and connect.

Delivery Takes a Back Seat

Delivery will continue to be de-emphasized in favor of other off-premise dining occasions as consumers weigh the convenience against its costs. A shift toward carryout, curbside pickup and particularly drive-thru will prompt more restaurant brands to invest in these alternative services, including new, high-profile store formats with multiple lanes dedicated to preorders versus on-site ordering. Further, spending less on delivery fees will encourage diners to increase their visits to foodservice establishments, helping to ease traffic crunch challenges. Given these fees can range on average from $3 to $15 per delivery, not including tip, this leaves consumers with more foodservice dollars to spend on food and drink.

Harmonizing Heat

Menus experienced a heat wave in 2024, with spicy nonalcohol drinks, hot honey and global sauces like gochujang and harissa going mainstream. In 2025, operators will embrace the full complexity of peppers and go beyond straight fire. Expect a greater focus on chiles that push the boundaries of heat, such as spicy-fruity-smoky fresnos or moritas and fruit-spicy aji amarillos. We’ll also see new, toned-down flavored versions of the aforementioned trendy sauces, such as strawberry gochujang, as well as candied and charred applications of spicier chiles such as jalapenos to mellow the intensity level. Global chile-based sauces and salsas will also ramp up, such as Peruvian huancaina sauce, Libyan chraimeh sauce, Thai nam prik and Mexican salsa macha. On the opposite side of the spectrum, fire-free peppers will be celebrated for their robust, sweet, fruity, smoky and/or earthy flavors, such as gypsy, Jimmy Nardello, olly and cascabel chiles.

Revitalizing Regional Classics

Enhancements to regional American favorites will drum up excitement in 2025. Operators will apply the plant-based treatment to traditionally meat-forward Kansas City burnt ends and will reinvent Southern collard greens into a flavorful dip. Upscale versions of classics will also emerge, with Southern boiled peanuts elevated by gourmet spices, indigenous American frybread served alongside premium proteins and condiments, and cornmeal-based spoonbread getting richer, more indulgent ingredient infusions. Even global renditions of regional favorites will make waves, such as Philly cheesesteaks reimagined as Asian bao and gyoza. Further, regional specialties like New York's chopped cheese sandwich, Louisiana’s po’boy and Chicago’s Malort liqueur will continue to reach new audiences far beyond their traditional locales.

Great Egg-spectations

The age-old question has been answered: Following the meteoric rise of chicken on menus, the remarkably complex and versatile egg is now set to take center stage. Look for more salted and cured yolk preparations that heighten the umami experience, as well as culinary twists that feature egg that is smoked, sieved and shaved. We’ll also see upscale takes on traditional egg-based salads and sandwiches, innovative global influences such as Japanese slow-poached onsen eggs and ajitama soft-boiled eggs, and even plant-based renditions. Additionally, expect further restaurant adoption of social media-driven egg innovations, such as the TikTok-propelled egg flight trend that showcases hard-boiled eggs with creative toppings such as kimchi, pulled pork and jalapenos.