US Restaurant Industry Faces Mixed Outcomes in 2025
NEW YORK, Feb 27 – While U.S. consumers appeared to tighten their belts last year, it seems that not all sectors were affected equally. Despite some stumbling among major retailers, sit-down restaurants and certain drive-thru chains attracted crowds eager for affordable comfort foods and special occasions.
Interestingly, the restaurant industry managed to create jobs in the face of these challenges. There was a 1% increase in restaurant employment last year, translating to roughly 108,000 new jobs, per the Bureau of Labor Statistics. In comparison, the overall U.S. economy brought in just 181,000 nonfarm jobs in 2025—the slowest annual growth in two decades, not counting recession years.
However, this growth isn’t universal across all restaurants. Some chains, like Chili’s, Taco Bell from Yum Brands, and Dutch Bros., have found success through clever marketing strategies, such as enticing bundles and innovative digital offers. They also focus on high-profit, Instagram-worthy dishes. On the flip side, former favorites like Chipotle and Cava seem to be feeling the pinch, as analysts point to “slop bowl fatigue,” indicating a waning interest among younger patrons in pricier, customizable grain and salad bowls.
Dutch Bros, based in Tempe, Arizona, has expanded significantly, adding around 8,000 employees over the last two years—an increase of 33%, as reported by the company. Chief Executive Christine Barone mentioned a robust growth pipeline and noted the appeal of their customizable drinks among younger consumers.
The trend of rising employment isn’t isolated. For instance, Whit’s Frozen Custard, an ice cream chain, has boosted employee wages by up to 40% in the past two years due to rapid growth, with about 93 stores now operating across 10 states, each employing around 15 to 20 individuals.
Amanda Wang, co-founder of the rapidly expanding Ningji Lemon Tea chain, shared insights on how their new U.S. locations are gaining traction with cost-conscious consumers looking for affordable luxuries. She expressed that tea brings her “a little bit of happiness.”
Despite difficult conditions, the restaurant sector saw growth in employee numbers. Analysts suggest that rising labor costs are partly linked to increased menu prices, noting a 4.1% rise in restaurant menu costs in 2025, contrasting with a 2.3% increase in grocery prices.
Different Fortunes Across Restaurant Types
Looking more closely at 2025’s salary data reveals varied fates for different restaurant types. Snack and non-alcoholic beverage spots enjoyed a 3.6% increase in employment, while sit-down restaurants saw a 1% rise. Conversely, fast food establishments had a modest salary increase of just 0.4%, and buffets and cafeterias experienced a decline of 3.9%.
Chad Mautray, an economist with the National Restaurant Association, pointed out that people continue to prioritize dining out for important occasions despite any hesitation about other expenditures.
Data from SEC filings indicated that Brinker’s saw a 23% increase in hourly staff from 2024 to 2025, hinting at a growing share of part-time employees. Darden, which oversees Olive Garden and Longhorn Steakhouse, also increased its workforce by roughly 3.8% in 2025.
While many national chains are franchised and don’t report complete employee counts, companies like Chipotle and Starbucks—who manage most of their own outlets—had slightly lower total employee numbers for 2025.
Restaurant owners are facing pricing pressures from tariffs affecting specific categories, like cup packaging and Sichuan pepper from China, which has compelled them to adjust their pricing and sourcing strategies.
