Brian Galati, co-owner of Machine Hospitality Group, which includes Dearly Beloved and Headquarters Beercade in Chicago, believes that to capture the essence of the current trends and shifts in the bar, restaurant, and hospitality industry, one must consider a litany of things.
“The industry's resilience and adaptability in the face of mounting challenges—rising costs, labor shortages, and changing consumer behaviors—are indeed driving innovation and creative problem-solving,” explained Galati. “What was once viewed as ancillary or experimental is now becoming central to a venue’s operational strategy.”
Galati said that in the New Year, businesses need to be fluid in their operations and embrace new ideas, which, from his perspective, may be the most powerful trend within the industry.
“There’s no room for rigid adherence to old concepts in an era defined by uncertainty and changing consumer behaviors,” revealed Galati. “The ability to quickly pivot, experiment, and integrate new revenue-generating strategies is critical.”
Galati’s best advice for other owners and operators in the bar and restaurant industry is to focus on the big picture—survival and growth through adaptability.
“The trend for most successful industry-related businesses today are the ones that embrace change and innovation,” said Galati. “Those that stick rigidly to a singular concept, in a market that is increasingly fluid and dynamic, are likely to face significant challenges. In other words, the most significant trend is that businesses hoping to thrive in this ‘new era’ of hospitality are the ones that balance creativity with practicality, continually looking for ways to deliver new, engaging experiences, even in uncertain times.”
To get a better understanding of some of the trends that will be important to owners and operators in 2025—as they focus on adapting, embracing change, and welcoming innovation—Bar & Restaurant News spoke to numerous industry thought leaders.
As a result, these leaders identified 14 key trends or industry developments, including new revenue streams, engaging the local community, helping each other within the industry, implementing new technologies and artificial intelligence, and considering sustainability and waste management, among many others.
In part one of this two-part series, we look at the first seven of the 14 trends.
1. Diversification of Revenue Streams
Galati, of Machine Hospitality Group, believes the days when a bar or restaurant, whether the establishment is high end or casual, could rely solely on its core offerings are behind us.
“Now, the most successful establishments have integrated a variety of experiences and partnerships to stay afloat,” shared Galati, who noted that events, pop-ups, and multi-concept venues are no longer just “add-ons” but foundational elements of a revenue model for many owners and operators.
Galati suggested that the industry focus on “signature events” and third-party promotions to help with additional revenue streams. “These are increasingly popular ways to boost visibility and tap into new customer bases,” he said. “Food/drink festivals, collaborations with local artists or chefs, and themed nights—think retro brunches or cocktail-making workshops—are examples of how businesses are engaging their audience…working with delivery services, hosting exclusive experiences on platforms like Eventbrite, or teaming up with influencers have all become key strategies to bring new traffic into venues.”
2. Engaging the Local Community, Customers Outside of the Establishment
Xavi Padrosa—co-owner and operator of Telefèric Barcelona in Palo Alto, Los Gatos, Walnut Creek, Los Angeles, and Long Beach, Calif.—said that engaging with the local community will be a key trend in 2025.
Padrosa suggested that bar, restaurant, and hospitality owners focus on fostering connections with their local communities and build relationships with neighborhoods, as a way to strengthen loyalty and support in the New Year and beyond.
“We partner with local businesses, participate in community events, donate to local causes, and tailor promotions—such as our happy hour lunch deals at Los Angeles—to resonate with our audience,” shared Padrosa.
Galati agrees with the idea of reaching out to the community or going where the customers are. “The idea of getting out there and bringing the guests to you is a direct response to changing consumer patterns,” said Galati. “With the increased preference for convenience, thanks to delivery services, and a heightened focus on experiences over traditional dining, businesses are adjusting by creating mobile or flexible concepts. The pop-up model, whether it’s food trucks or temporary partnerships, has exploded in popularity. It’s a fantastic way for businesses to test new markets without a long-term commitment, while also giving their audience fresh experiences.”
3. Helping Each Other Within the Industry
For Courtney Blake, owner and CEO, Pilot Light Consulting, the most impactful trend on the rise is “food and beverage people helping food and beverage people.”
“There continues to be a rise in organizations working to support hospitality people,” said Blake, whose consulting business supports owners and operators with strategies or launching a new business. “Southern Smoke is providing direct relief and access to mental health. OS Benefits is bringing benefits to independent hospitality businesses. Lush Life Productions is bringing education and empowerment to bartenders. There are too many to list, and this is a trend that I am here for! I am eager to see how we will continue to offer hospitality to each other as we work to cultivate a more sustainable food and beverage industry.”
Miranda Escalante, beverage specialist at Pilot Light Consulting, said it’s been encouraging to watch all of the mutual support within the industry, which she expects to see more of in 2025.
“This culture has always been prevalent, but it has been brought to the front in recent years,” said Escalante. “There are so many non-profits and groups advocating for service industry people’s betterment… When employers create spaces that share resources like this with their staff, I think it leads to employers exploring other unconventional resources and benefits that they can provide, offerings like DPR [Direct Primary Care] and gym membership deals.”
Blake’s advice is that the industry should think deeply about how it can offer hospitality to one another. “It’s hard to run a restaurant all by yourself,” she said. “It is the same for our industry as a whole, we can only succeed if we do it together.”
4. Technology and Artificial Intelligence
Quinn Carlton Bostic, vice president of Tabletop Media Group—a Raleigh, N.C.-based marketing agency that specializes in food and beverage, hospitality, and entertainment—said technology and AI will continue to be a big trend in the industry in 2025.
“As artificial intelligence continues to evolve and integrate into our daily lives, its role in the restaurant industry will expand significantly by 2025,” said Bostic.
Bostic noted that the industry will see broader adoption of advancements that not only streamline operations but also cater to tech-savvy diners who value seamless and personalized experiences. She said customers will also leverage AI tools to enhance their experiences, such as using AI-driven platforms to “generate my perfect order” before visiting a restaurant. “These tools could analyze personal preferences, dietary needs, and even trending dishes to provide tailored recommendations,” she explained.
Tim Brown, vice president of global solutions engineering for Oracle Food and Beverage, which offers restaurant technology solutions, also believes that AI is certain to revolutionize the industry, driving both revenue growth and operational efficiencies.
“By leveraging AI-powered applications tailored to the food and beverage sector, restaurants can transform key aspects of their business,” said Brown. “Data science and large language models will be instrumental in this transformation, enabling advanced customer segmentation within loyalty programs and optimizing sales strategies. In particular, data science can optimize promotions and segmentation by identifying which customers are most likely to redeem certain rewards to drive revenue. Additionally, voice AI is poised to become a central component of the customer experience, as it will take convenience to the next level by automating the ordering process for both patrons and staff. Simultaneously, AI-driven menu engineering and production forecasting will enhance both efficiency and customer satisfaction.”
At Teleferic Barcelona in California, they’ve embraced recent advancements and implemented digital platforms for to-go orders, and recently added a chatbox to their website, to assist customers as quickly and efficiently as possible.
“My advice would be to prioritize user-friendly technological advancements that directly enhance the customer experience,” shared Padrosa of Telefèric Barcelona. “Focus on implementing tools that streamline processes, such as digital platforms for to-go orders, and ensure features like chat boxes are responsive and offer personalized support.”
When it comes to AI, Brown said restaurants should start small. “There’s no need to feel pressured to adopt every AI solution immediately,” he said. “For a more efficient approach, focus on areas where AI delivers the quickest impact, like optimizing menus based on customer data or using AI-powered chatbots for handling basic customer service inquiries.”
5. The Intelligent Kitchen
Brown, of Oracle Food and Beverage, said restaurant kitchens—the heart of many operations—are ripe for transformation through automation and innovation, driven by the growth of both on- and off-premises dining. Thus, the industry should expect to see new innovations for the intelligent kitchen.
“Across the industry, restaurants are embracing digital and AI-powered technologies to boost kitchen efficiency and improve the employee experience,” said Brown. “Even fine dining establishments, once resistant to digital kitchen management systems, are now adopting these tools, paving the way for advancements in production capacity measurement, forecasting, and predictive analytics.”
Brown said he anticipates increased exploration and implementation of AI vision technology in kitchens in 2025, to enhance safety, ensure quality control, and minimize waste.
In addition, with rising staff turnover, Brown said voice AI is poised to play a vital role in training and providing on-demand support for various kitchen tasks.
“The intelligent kitchen of the future promises streamlined workflows, optimized productivity, and enhanced experiences for both customers and employees,” shared Brown, who advised owners and operators to adopt a “phased approach,” prioritizing areas with the highest potential for impact and ROI.
“Operators should assess their current kitchen processes and pain points, targeting areas where automation and AI can maximize improvements,” said Brown. “Another key consideration is to invest in reliable, scalable kitchen management systems that integrate with existing technology.”
6. Online Ordering, Self Service, and Kiosks
One of the biggest trends has been the rise of online ordering, and experts predict that it will continue to be an important topic in 2025, coupled with other methods of customer convenience, such as self-service, kiosks, and contactless payments.
Greg Provance, owner of GP Hospitality Partners and several restaurants in the San Diego area, said restaurants of all shapes and sizes have experienced an increase in online ordering, which will continue in the New Year. “This is fueled in part by the COVID-era adoption of third-party delivery services like Uber Eats, DoorDash, and Grubhub,” said Provance. “Most studies confirm that up to 71 percent of Gen Z reported that they use these apps up to four times a month. Guest check averages are also significantly higher when ordering through apps than in store, averaging just over 28 percent in most cases.”
When it comes to navigating the increase in online orders, Provance recommended several strategies:
- Standardize your presence online with third-party platforms, your own website, and in-store menus. “No matter where the guest orders, these should all be the same experience so there is no confusion and to maximize efficiency,” said Provance.
- Optimize your online process. “Be sure each menu item has the proper modifiers, upsells are easy to execute, and menus are organized to push your top sellers and high margin items,” suggested Provance.
- Be sure your in-house operations are able to execute. “This will reduce or eliminate wasteful mistakes, which can be costly in terms of product and guest experience,” advised Provance. “With a little effort and some strategy, restaurants can truly capitalize on a growing trend that looks like it is here to stay.”
According to Brown, of Oracle Food and Beverage, self-service ordering and contactless payments have become increasingly popular, due to rising labor costs and growing customer demand for convenience, and some restaurants are responding by investing heavily in self-service technologies and kiosks.
“This trend is expected to grow among various dining segments, including quick-service, fast-casual, business dining, and sports and entertainment venues,” said Brown. “Self-service ordering offers clear advantages, including increased average order values, more effective upselling and cross-selling, and shorter wait times. Integrating AI within the ordering process further enhances the customer experience by personalizing suggestions for both loyal customers and new guests based on similar profiles.”
Joe Fontana, owner of Fry the Coop in Chicago and other locations, said self-serve kiosks are becoming really popular because customers have more time to explore the menu, add different items, and/or change an order without pressure. From an operations standpoint, however, he said kiosks migt not help with labor issues because the establishment may still need a cashier or someone to assist, if a customer has an issue with ordering. Still, the check total tends to be higher at the kiosk.
“In 2025, I see more kiosks but instead of only multiple kiosks, it should be a mix of kiosks and registers, so all generations have an option,” said Fontana. “Plus, businesses should always have a staff member available to assist... that is key. Think of the self-checkout at the grocery store—you still always need help and it's great that they have staff overseeing the area.”
7. Highly Personalized, Engaging Loyalty Programs
Brown believes hyper-personalized, engagement-based loyalty programs will be a trend in 2025.
“As customer acquisition costs climb, restaurants must optimize their marketing spend across all channels,” said Brown. “Tracking orders and purchases, regardless of whether customers are loyalty members or anonymous guests, is key to effective targeting. With customer visit frequency declining, analyzing channel performance based on metrics like average order value, profit margin, and loyalty program conversion becomes critical.”
To drive engagement and build lasting customer relationships, Brown suggested that brands offer curated experiences through loyalty programs, such as exclusive experiences, early access to new menu items, or the opportunity to influence menu items.
“Bars, restaurants, and pubs naturally lend themselves to gamification,” explained Brown, “so activations like reward unlocks, polls, quizzes and surveys, badges, scavenger hunts, challenges, sweepstakes, playing games of chance, instant win, and code redemption are great ways to build profile data for better personalization and targeted offers that drive repeat visits and wallet share.”
Brown said the future of loyalty lies in moving away from traditional “earn and burn” models and instead moving toward strategic cross-industry partnerships and a data-driven approach to measuring sales channel and loyalty program ROI.
“Especially in large urban destinations, bars and restaurants are often part of broader entertainment districts,” said Brown. “They may exist within the same ecosystem as sports stadiums, movie theaters, ice skating rinks, and more. As such, building a strong loyalty base, especially with high-engagement apps, can help establishments stick out or become destinations themselves within the larger districts. Additionally, partnerships with entertainment venues can build credibility and open the door to exciting special engagements for loyal customers.”
Read Part Two for trends 8-14!
Aaron Kiel is an award-winning journalist and public relations professional in Raleigh, N.C. He’s worked in the beverage, tea, and coffee industries for two decades, as well as hospitality and technology. He’s a journalist at heart, but he also wears a PR and communications hat through his consultancy, ak PR Group. Aaron is a contributing writer/reporter for Questex’s Bar & Restaurant News and he’s a past editor of Questex’s World Tea News. In 2023, he was a finalist and honorable mention in the “Folio: Eddie & Ozzie Awards” for “Range of Work by a Single Author – B2B” for Questex’s World Tea News. In 2024, Aaron won two awards for his work with Questex’s Bar & Restaurant News, including a Gold Northeast Region Award in the American Society of Business Publication Editors’ (ASBPE) Azbee Awards under the “Diversity, Equity & Inclusion” category, and a “Folio: Eddie & Ozzie Award” in the B2B article category for “Culture & Community.” He also received a 2024/2025 ASBPE Diversity Fellowship Award, which supports and recognizes diversity in the field of B2B journalism. Connect with him on Instagram: @adventurer_explorer or visit akprgroup.com.
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