Bar & Restaurant News: What macroeconomic factors do you think will have the most significant impact on the hospitality industry in 2025?
Roger Lee: The hospitality industry in 2025 will be largely influenced by changes in consumer spending and an ongoing shift in preferences toward health and sustainability. These evolving consumer priorities are fundamentally reshaping how establishments approach their offerings and operations.
If the proposed tariffs from the incoming presidential administration come to pass, how may this affect the hospitality industry?
Potential new tariffs could create significant cost pressures for the hospitality industry, particularly given its reliance on imported food products. These tariffs, combined with already rising labor costs, would likely compound the financial challenges establishments are currently facing in managing their operational expenses.
Are there any anticipated legal/regulatory changes in 2025 that might significantly impact restaurant groups?
Immigration policy developments will likely be a central concern for the restaurant industry in 2025, as changes in this area could impact the entire supply chain—from agricultural production to food service operations. Any significant policy shifts would have broad implications for the industry's workforce and operational capabilities.
Are you seeing a resurgence in restaurant openings?
I anticipate increased restaurant expansion in the coming year, driven by expectations of a more business-friendly environment and lower interest rates. This growth trend is likely to include both traditional restaurant openings and the continued expansion of ghost kitchen operations, reflecting the industry's evolving business models.
What’s your outlook on the state of hospitality mergers and buyouts in 2025?
As I just mentioned regarding restaurant expansion, with anticipated lower interest rates and a more business-friendly environment on the horizon, I expect to see increased merger and acquisition activity in the hospitality sector during 2025. These conditions should create more favorable circumstances for deal-making across the industry.
How are shifts in consumer preferences—like sustainability, health-conscious dining, or experiential dining—affecting restaurant groups?
Consumer preferences continue to shape restaurant group strategies across multiple fronts. While many establishments are increasing their focus on local sourcing to meet sustainability demands, they're simultaneously expanding healthy dining options. However, these initiatives face challenges from rising labor costs and pricing pressures. Meanwhile, we're seeing younger, affluent consumers driving demand for authentic dining experiences, which often aligns with their interest in sustainable practices. This creates a complex operating environment where restaurants must balance these evolving preferences with economic realities.
What strategies do you see succeeding in attracting and retaining talent in an industry still recovering from workforce shortages?
The industry is adapting its approach to talent management, with successful strategies now including comprehensive benefits packages, enhanced training and development programs, more competitive pay structures, and regular salary reviews. These investments in workforce development are proving essential for both attracting and retaining quality talent.
With the rise of private dining clubs, what opportunities do you foresee for similar concepts in 2025?
While private dining clubs represent one emerging trend, we're seeing greater opportunities in the digital space, particularly with ghost kitchens and delivery-focused concepts that cater to consumers' growing preference for app-based ordering and convenience-driven dining options.
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