5&5’s 2025 Restaurant Trends Forecast

At 5&5, we’re privileged to have worked closely with hundreds of restaurant brands over the past several years, giving us a front-row seat to the challenges and opportunities they’ve faced in navigating today’s technology-forward landscape. Our expertise in digital transformation has shown us that while many brands face challenges like outdated systems and fragmented tech stacks, these hurdles also present exciting opportunities to evolve and meet the dynamic expectations of today’s restaurant consumers. This unique vantage point allows us to not only identify common pain points but also provide tailored solutions that help brands streamline operations, drive growth, and thrive in the digital era.

In this blog, we’ll share our roundup of the key technology trends we see shaping the restaurant industry in 2025. These are the trends we believe will have the most significant impact on the brands we partner with and the broader restaurant community as they continue their journeys toward digital adoption and integration.

Economic Recovery: Hope Meets Reality

According to Nation’s Restaurant News (NRN), the economic outlook for restaurants in 2025 is a shift toward more stability. In their analysis, the publication reflects on the turbulence felt from all corners of the industry and marked by high inflation, decreased consumer dining frequency, and a surge in restaurant bankruptcies across all segments. As brands scrambled to implement value-driven strategies to regain customer loyalty, the industry entered a “value war” that defined much of the year. This competitive landscape, coupled with the rising costs of debt taken on during the pandemic, proved challenging for legacy and emerging brands alike.

While the challenges of 2024 have prompted cautious optimism, NRN notes that 2025 holds promise for stabilization, as brands adapt to consumer expectations and find ways to balance value propositions with profitability. The year ahead represents a potential turning point, with a focus on resilience and strategic growth, despite the lingering pressures of an unpredictable economic environment.

AI Moves from Buzzword to Backbone

Artificial intelligence has moved beyond the hype to become a driving force behind innovation in inventory management, labor optimization, guest interactions, and more. From POS systems to online ordering and loyalty platforms, we are seeing an increasing number of our own partners and industry players alike redefining their value propositions with AI-powered enhancements.

While the restaurant industry has traditionally lagged in AI adoption, it’s catching up. According to NetSuite, approximately 47% of restaurants currently utilize AI, with larger chains leading the way. Of those not yet using AI, 35% expressed interest in adopting the technology. With the rise of digital-first dining and an increasing reliance on off-premise sales, integrating AI into both front- and back-of-house operations is key for staying competitive in today’s fast-evolving restaurant landscape.

The Era of Digital Menus and Kiosks

Digital menus and kiosks (on top of mobile-friendly websites) are creating seamless, contactless experiences, while AI and data insights enable personalized service, improved order accuracy, and faster turnaround times. On the back end, tools like automated kitchen systems and inventory management software ensure smooth operations. By integrating loyalty programs and promotions into easy-to-navigate platforms, restaurants are able to boost customer engagement and drive repeat business.

According to Tillster’s 2024 Phygital Dining Expectations report, 57% of diners who use kiosks wish more restaurants offered self-service options, up from 36% the previous year. Digital transformation is reshaping how restaurants connect with diners, making convenience and personalization the standard.

Hyper-personalized Engagement

According to Mobal, AI-driven personalization has become a game-changer, enabling restaurants to use customer data to tailor promotions and enhance dining experiences, while AI-powered chatbots streamline customer interactions and boost operational efficiency. It is very important to create digital-centric strategies, such as maintaining user-friendly websites, virtual menus, and integrated systems for reservations and contactless payments, to improve engagement and visibility.

Additionally, integrated loyalty programs and mobile apps, highlighted by QSR Magazine, serve as key tools for gathering real-time feedback and fostering deeper connections with customers. By aligning their strategies with these innovations, restaurants can create hyper-targeted campaigns that go beyond generic promotions to build loyalty and meaningful relationships. This personalized, technology-driven approach is redefining how restaurants interact with their audiences, paving the way for sustained growth in an increasingly competitive market.

First-Party Ordering and HD Photos Are Here to Stay

Over the last year or two, first-party ordering has become a crucial strategy for restaurants, enabling them to retain more revenue and foster stronger customer loyalty. Many operators incentivized customers to place direct orders by offering exclusive perks, such as digital-only menu items and loyalty rewards, which helped reduce reliance on third-party platforms.

The role of high-quality photography in this process cannot be overstated. According to Restolabs.com, leveraging photography on a restaurant menu can boost sales of an item by as much as 30%. This highlights how compelling visuals not only drive appetite appeal but also contribute to stronger sales by encouraging customers to engage more with the menu and to place larger orders.

Let 5&5 help you lead 2025 Restaurant Trends

As the restaurant industry gears up for 2025, digital transformation, AI integration, and personalized loyalty strategies will be key to staying competitive. At 5&5, we specialize in helping restaurant brands optimize their online ordering systems, streamline customer engagement through AI-driven solutions, and create hyper-targeted promotional strategies that enhance loyalty and boost ROI. Whether you’re looking to explore kiosks and digital menu boards, or to integrate predictive analytics into your operations, we have the expertise to help you navigate the evolving landscape with confidence. Contact us today to explore how 5&5 can help your restaurant thrive in the digital age.