Technology

Restaurants bet on tech, growth despite inflation, labor challenges

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October 10, 2025

Restaurants are increasingly turning to technology and strategic growth plans to weather ongoing inflation and labor shortages, according to Toast's Voice of the Restaurant Industry Survey.

Polling over 700 restaurant decision-makers, the report highlights a clear shift in operational priorities:

• Profitability Takes Center Stage: 40% of respondents named improving profitability as their top goal. Nearly half (48%) plan to raise menu prices if inflation continues. In the face of consumer spending slowdowns, restaurants are more likely to increase marketing (47%) and offer deals (46%) than reduce staff hours or headcount.
• Labor and Inflation Are Key Challenges: One in five operators say inflation is their top concern. Hiring remains tough, with 41% reporting moderate to severe challenges. To cope, many are focused on boosting staff efficiency (47%) and improving retention (42%).
• AI Adoption on the Rise: 86% of operators say they're comfortable using AI, and 81% plan to expand its use — particularly in marketing automation, real-time business insights, and menu optimization.
• Optimism Persists: Despite headwinds, 25% of restaurant operators say they are "very likely" to expand their business within the next year.

The findings underscore a resilient industry leaning into innovation to drive future growth.