How Do You Plan To Work Through These Key Restaurant Challenges In The Year Ahead?

Top 10 Challenges For Restaurants In 2025 | Restaurant CPAs | GBQ PartnersGBQ’s restaurant services team works hard to maintain a pulse on the key challenges restaurant owners face and proactively works to identify solutions that can be used to empower growth. We’ve talked to clients, attended conferences, read the latest restaurant news, and surrounded ourselves with a network of restaurant professionals who share our commitment to the industry. After compiling information and comparing notes, we’ve identified what we believe to be the top 10 topics restaurant owners will likely have on their radar in 2025.

Check out our assessment below or download the printable version. Then, let us know how we did.

1. Economic Uncertainty and Inflation

Inflation continues to impact consumers’ discretionary income. To retain customers, restauranteurs must balance increasing costs while maintaining attractive pricing and menu value. Additionally, restauranteurs face challenges with controlling operating expenses, such as insurance costs.

2. Maintaining and Improving Traffic Count

In addition to pricing decisions, restaurants must prioritize exceptional customer service to attract and retain patrons through personalized experiences, staff training, loyalty programs, community engagement, and technology integration (e.g., mobile ordering and online reservations).

3. Rising Food Costs and Supply Chain Disruptions

Inflation and supply chain disruptions are expected to affect food costs, making menu pricing more volatile. Furthermore, potential tariffs enacted on imported goods can significantly affect food prices and overall profitability. Restaurants may need to adjust their sourcing strategies or innovate to maintain profitability.

4. Labor Shortage/Talent Retention

Improvements have been made to combat labor shortages. However, attracting and retaining talent remains critical for a successful year. Potential shifts in immigration policies, such as stricter visa restrictions or enforcement of labor laws, could exacerbate the industry’s labor shortage, leading to higher wages for available workers. Rising wages, better benefits, and improved work environments will be key to attracting and keeping employees.

5. Tip Credit/Minimum Wage Laws Passed At State Levels

Many states are introducing bills to eliminate the reduced minimum wage for tipped employees. Employers will be required to pay all employees the same base state minimum wage and eliminate the lower tipped wage. These bills would also increase the base state minimum wage. Labor costs would increase dramatically should these bills pass. Some states and municipalities have already passed such bills.

6. Cyber Security Matters

Restaurants are prime targets for data theft including PCI data and data used for customer personalization. Ransomware and email compromise (wire fraud) impacts continue to rise. Web and mobile applications are a common weak point and frequent attack targets. And let us not forget third-party vendor risks such as the NCR incident in 2023.

7. Technology Integration and Automation

AI and automation pose restaurant risks and opportunities. Adopting AI-driven ordering systems, robotic kitchen assistants, and automation for front-of-house operations will accelerate. Restaurants must balance the benefits of efficiency with customer experience concerns.

8. Capitalization/TPR/Depreciation (Bonus/179)

As the bonus depreciation percentage continues to phase down each year, the Section 179 deduction and immediate expensing under the Tangible Property Regulations (TPR) have re-emerged as effective tax planning strategies. Cost segregation studies should also be evaluated to increase depreciation deductions.

9. Succession/Exit Planning and Execution

Planning and executing a successful sale (or purchase) of a business requires proper analysis of organizational structures, tax exposures, transaction costs, tax modeling/mitigation, and more. The lifetime estate tax exemption is set to expire at the end of 2025. Significant wealth (including business interests) requires careful tax planning for transitioning to the next generation.

10. Access To Capital To Support Future Growth

As interest rates continue to be much higher than in recent years, access to capital remains a challenge for future organic growth and acquisitions. Even with M&A deals expected to increase, the cost will significantly increase.

How To Overcome Restaurant Industry Challenges

So, how did we do? Do you anticipate facing many of these challenges as your restaurant embarks on 2025? GBQ’s Restaurant Services Team is here to help. Click here to learn more about our team of professionals or contact us today.

By Dustin Minton, director, assurance & business advisory services & Kaz Unalan, CPA, CEPA, director, tax & business advisory services


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