Clarkston’s team of retail consultants have highlighted the top restaurant and hospitality industry trends that businesses should consider. See an excerpt of the trends report below, and read all five trends for 2025 by downloading the full report here.

2025 Restaurant and Hospitality Trends

The restaurant and hospitality industry is experiencing a dynamic shift due to changing consumer demands and technological advancements that are reshaping its landscape. Businesses are leveraging technological advancements as they seek to enhance efficiency and reduce costs. Concurrently, the rise of ghost kitchens has transformed the culinary scene, allowing brands to expand their reach through delivery without the overhead of a traditional dining space. The push for sustainability has emerged alongside a growing focus on health and wellness.  

To meet these demands, establishments are prioritizing eco-friendly practices and responsible sourcing as they assess their menus and operational practices to ensure they align with the health-conscious preferences of today’s diners. Creating experience-based service has become crucial, as consumers increasingly seek memorable interactions and personalized dining experiences that go beyond just the food. Collectively, these trends are reshaping the future of the restaurant and hospitality industry, pushing it toward greater innovation and responsiveness to consumer needs as we enter 2025. 

Trend #1: Streamlining Operations with Advanced Technology 

In the past year, the restaurant and hospitality industry has seen a large increase in the resources spent prioritizing operations. This is transforming how businesses function and serve customers. Faced with rising labor costs, staff shortages, and increasing demand for faster, more convenient service, companies are turning to technology and automation to enhance efficiency. From drive-throughs to full-service hotels, the whole industry is trying to make their customer interactions as seamless and efficient as possible.   

Companies are implementing a variety of methods to achieve efficiency including mobile ordering, contactless payments, automated inventory systems, and data-driven personalization, leveraging innovative tools to optimize processes, reduce costs, and improve the guest experience. We have seen cooking robots rolled out across the industry making items such as tortilla chips, wings, bread and pizza. Additionally, some businesses are optimizing staff roles and using AI to automate drive through and over the phone ordering. These strategies help cut costs and boost operational effectiveness while delivering a more seamless customer journey. 

While not all companies are going all in into automation, most companies are leveraging some type of technology to streamline their SOPs. Today, 60% of restaurant owners use contactless payment solutions, while 88% of restaurant operators believe replacing traditional menus with QR code menus allows them to streamline their business. 

This shift helps companies maintain a solid bottom line to stay competitive in a fast-evolving market. By adopting more efficient processes, they can reduce operational costs, especially in areas like labor and inventory management. It also helps address staffing challenges, allowing businesses to maintain high-quality service with fewer employees. Furthermore, by meeting modern consumer demands for speed, convenience, and personalized service, owners can enhance customer satisfaction and loyalty, leading to increased revenue. In a competitive market, prioritizing operations is essential for staying relevant, improving profitability, and ensuring sustainable growth. 

Trend #2: Will Ghost Kitchens Continue to Rise? 

The rise of ghost kitchens, also known as cloud kitchens or dark kitchens, represents a significant shift in the food service industry. If you haven’t heard of this concept before, ghost kitchens are commercial cooking spaces that produce food exclusively for delivery and takeout, without a traditional dine-in option. These kitchens can sustain multiple brands or menus out of a single location. 

This industry sector has been growing quickly, as from 2021 to 2024, the number of ghost kitchens rose from 3,500 to over 7,500. The rise of ghost kitchens is driven by consumer preferences changing to favor convince and speed over traditional restaurants or time-consuming cooking. This is shown as 60% of consumers order delivery every week.  

These kitchens offer cost efficiency through lower overhead costs and shared resources, allowing multiple brands to operate from a single space. The growth of food delivery platforms, coupled with data analytics, also enhances market reach and operational efficiency allows these companies to serve consumers and on a large scale. Additionally, ghost kitchens provide flexibility and scalability, enabling quick brand launches and menu testing with minimal risk. This combination of factors positions ghost kitchens as a dynamic and innovative solution in the evolving food service landscape.  

The rise of ghost kitchens is significant for business owners as they offer a cost-effective and flexible entry into the food industry, requiring lower initial investments and operational costs compared to traditional restaurants. This model enables quick adaptation to changing consumer preferences as well. Additionally, ghost kitchens facilitate rapid scalability into new markets and leverage technology for data-driven insights, optimizing menus and enhancing delivery logistics. As consumer trends increasingly favor online ordering and delivery, ghost kitchens help entrepreneurs meet these demands and maintain a competitive edge. Continue reading by downloading the full report below.

Download the Full 2025 Restaurant and Hospitality Trends Report Here

Contributions from Jacob Gallagher