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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /nas/content/live/fredminnick/wp-includes/functions.php on line 6121James Beard Reports Continued Challenges in Restaurant Industry
The James Beard Foundation (JBF) announced today the findings of its “2025 Independent Restaurant Industry Report,” revealing an industry at inflection as it faces challenges across multiple fronts.
In collaboration with Deloitte, the report is a nationwide study providing a data-driven look at the current state of independent restaurants and their outlook for 2025, examining factors from rising costs and labor challenges to shifting consumer behavior.
“This year’s report underscores the resilience, tenacity, and ingenuity of independent restaurants in the face of mounting pressures,” Clare Reichenbach, CEO, James Beard Foundation, said in a news release. “While encouraging signs exist, the industry continues to navigate an increasingly complex landscape. We remain more committed than ever to supporting these vital businesses—the backbone of local economies and communities—by providing training and resources to build business resilience, as well as championing and spotlighting our industry across all our platforms.”
Despite substantial challenges, the report reveals an industry demonstrating remarkable fortitude and innovation. Through strategic adaptation and creative problem-solving, independent restaurants are actively evolving their operations to meet current market demands, while preparing for future uncertainties. The study identified four major trends that are reshaping the industry landscape:
The research findings stem from in-person chef interviews and a nationwide survey of over 400 restaurant owners and operators conducted in 2024. The study represents a broad cross-section of the independent restaurant industry—spanning 47 states and all four census regions—with respondents ranging from fine dining establishments to fast-casual venues, breweries, and caterers.
2025 STATE OF THE INDEPENDENT RESTAURANT INDUSTRY
Independent restaurants enter 2025 at a pivotal moment, as the industry confronts multiple challenges and adapts to an increasingly complex operating environment that extends well beyond the lingering effects of the pandemic.
Following a period of cautious optimism in 2023, the industry encountered significant headwinds throughout 2024, including persistent inflation, escalating costs, workforce challenges, and impacts from extreme weather events. While business performance showed encouraging signs of improvement, independent restaurants—already operating on thin margins—face mounting pressure on all fronts. Compounding these circumstances, consumer behavior continues to shift in today’s high-cost environment, as diners reduce their frequency of dining out and gravitate toward more value-driven choices.
KEY FINDINGS
2024 Business Performance:
THEME I: Overcoming barriers to increase guest spend
THEME II: Intentional engagement to deepen guest connection
THEME III: New ways to attract and retain a winning team
THEME IV: Increased urgency to evolve business models
“The 2025 Independent Restaurant Industry Report reveals how independent restaurants are not just surviving but actively transforming in response to today’s challenges,” Evert Gruyaert, US Restaurants & Food Service leader, and principal, Deloitte Consulting LLP, said. “As these establishments face rising costs, labor shortages, and shifting consumer behaviors, their innovative and adaptive strategies are key to their success. Deloitte is proud to collaborate with the James Beard Foundation, helping the organization share insights and support these establishments to thrive and continue enriching our communities.”
The Annual Industry Report is also part of a newly launched “JBF Institute,” which offers tools, training, and resources to support the success of independent restaurants and industry professionals. Informed by research on key industry challenges, the JBF Institute provides a comprehensive suite of programs, events, and networking opportunities designed to address these issues and foster meaningful connections within the industry.
Read more: Bar at Willett Named James Beard Semifinalist
About the James Beard Foundation
The James Beard Foundation (JBF) is a 501(c)3 nonprofit dedicated to leading chefs and the broader culinary industry towards a new standard of excellence. Its guiding principle, Good Food for Good, informs our vision of a vibrant, equitable, and sustainable independent restaurant industry that stands as a cornerstone of American culture, community and economy, and drives towards a better food system. For nearly 40 years, JBF has been instrumental in recognizing, amplifying, educating, and training the individuals who shape American food culture. Learn more at jamesbeard.org.