2025 is just weeks away, and we sat down with Steve Palmer, founder and chief vision officer of The Indigo Road Hospitality Group, to discuss the trends and challenges that will face bars and restaurants next year.
Guest Experience
2024 was very much the year of artificial intelligence (AI) as ChatGPT rose to prominence and more and more venues brought in automating technology. A robust tech stack can bring in efficiency, stronger data, and faster service, but it can’t replace the human element.
Palmer thinks this need for connection will dominate hospitality in 2025, “Human connection has never been more important.”
He believes bars and restaurants can differentiate themselves from competitors by focusing on human connection and creating a one-of-a-kind guest experience. One way Indigo Road’s concepts make guests feel special is through “gifts” and “surprises.” Palmer says he got the idea after reading Unreasonable Hospitality by Will Guidara, the former owner of Eleven Madison Park. In the book, he mentions the restaurant used to have staff members known as “dream weavers,” who were tasked with researching guests to find out something unique about them.
“After reading that book last year in our leadership conference, we as a group made a commitment to one ‘surprise and delight’ a night [for guests] and one employee ‘surprise and delight’ a week,” says Palmer. “It’s finding ways beyond the food itself to connect with you.”
To make these personalized surprises happen, Indigo Road has staff members at some of its concepts who research and keep notes on guests. Staff members are also encouraged to actively listen and gather guest insights that can be added to the guest profile. “People are blown away at the detail, and I think just by having that culture, you're already creating an environment of deeper guest engagement and a lot of active listening,” says Palmer.
Employee Management
The “surprise and delight” concept is similar for employees, where a staff member is surprised each week with a personalized gift or experience.
What shouldn’t be a surprise, however, is an employee’s path to growth, and Palmer says he is starting to see younger employees realize hospitality could be a career for them rather than a transitory job. As a result, Indigo Road created Hospitality U, which is a once-a-year training and education program to recognize and nurture employees who exhibit a passion and an investment in hospitality. (You can read more about Hospitality U and employee “surprise and delights” in our article, “Employee Retention Can Be a Silver Bullet for the Labor Issue in the Restaurant Industry.”)
“It is our responsibility to keep them inspired,” says Palmer, who notes the changes in employee expectations that have come about since Covid. He says that while the hard work required of hospitality industry workers won’t change, Indigo Road is trying to offer balance with competitive benefits and training. “Hopefully we can change the environment in which people do the work,” he says.
Communication is also a key part of this, and it’s important to foster a culture of open communication and feedback—especially between managers and employees.
While challenges surrounding labor started to ease this year, many restaurants are now facing an issue with sourcing back-of-house employees like chefs and line cooks.
Palmer says some of the issues stem from a difference in work expectations. This is especially true of the younger generations, who are less interested in the traditional "grind" of working their way up in the kitchen. Many are more interested in leaning on their social media platforms to get noticed or land on a show like Top Chef.
The stress, long hours, and hard work required in a kitchen can be a turnoff for many. Loyalty is lacking as well, as the lure of higher pay or a perceived better opportunity can cause staff to leave abruptly.
Palmer says enrollment in culinary schools and programs is down as well, reducing the pipeline of new talent entering the industry.
So what are some solutions to the back-of-house problems? Above all, operators need to focus on creating more appealing work environments and providing clear career development paths. Investing in employee engagement and retention will be key to building a stable, loyal kitchen staff.
Trends
While a bar or restaurant’s greatest asset, its people (both guests or employees), will continue to be paramount in 2025, we asked Palmer to weigh in on some specific F&B trends he predicts will be big in the New Year.
Ozempic: The Ozempic effect is real, and Palmer says it’s impacting dining habits across the board—even at Indigo Road’s steakhouse concepts. “People are eating less, and I think they're eating even more healthy,” he says, noting that Indigo Road’s sushi concepts are seeing increased sales as people seek out lighter, more nutritious menu options.
Low & No-Alc: The focus on healthier options is also affecting drink menus, as more guests expect non-alc and low-alc options. “I don't even question anymore whether there's going to be zero proof on the menu—they're always there,” says Palmer.
Affordability & Value: Guests are also drawn to “low” prices on menus as they become more cost-conscious in the light of inflation. “I think approachability is really key if you're going out to dinner more often,” says Palmer, who notes most of Indigo Road’s concepts offer approachable dining experiences in the $50-$60 per person range, rather than high-end, $100+ per person options.
The bottom line? In 2025, guests will be looking for restaurants to provide approachable, personalized experiences that cater to their preferences.
Are you registered for our Crave and Crave on the Menu newsletters? Sign up today!
Plan to Attend or Participate in Our Events:
- 2025 Bar & Restaurant Expo, March 24-26, 2025, Las Vegas, Nevada. Register Now!
- 2025 Bar & Restaurant Expo Colorado, October 26-28, 2025, Denver, Colorado
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo 2025 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at our events, fill out our form.
Also, be sure to follow Bar & Restaurant on Facebook and Instagram for all the latest industry news and trends.