Summary: Foodservice Industry Outlook
The foodservice industry faces operational and economic challenges, impacting profitability and
efficiency despite steady consumer demand
• Shifting Consumer Behavior: Customers continue to prioritize convenience, with an increased reliance on carry-out, delivery and takeout services, putting additional demand on packaging solutions (Technomic Industry Report, March 2025) . • Sustainability Expectations: More municipalities are enacting regulations on single-use plastics, forcing restaurants to seek compliant, eco-friendly alternatives, which often come at a higher cost (Environmental Protection Agency, February 2025) . • Technology Investments: Many restaurants are turning to automation and digital ordering systems to offset labor challenges, leading to increased capital expenditures (Restaurant Business Online, March 2025) .
The foodservice industry is navigating a complex landscape in early 2025, with restaurants facing a range of operational and economic challenges. Despite steady consumer demand, several factors are impacting profitability and efficiency. Key Challenges: • Labor Shortages: Hiring and retaining staff remains a top issue, with wages rising and competition for workers increasing across the hospitality sector (National Restaurant Association, February 2025) . • Inflationary Pressures: Higher food costs and increased operating expenses—driven by supply chain disruptions and tariffs—are squeezing profit margins (Bureau of Labor Statistics, March 2025) .
Q2 2025 Market Update
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ACR©2025
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