quicker these days than they did two to three years ago,” Shank said. “They’re expecting price increases at a faster rate than they’re occurring.” Consumers are concerned about the impact prices could have on their finances. More than half, 56%, told Technomic that they are closely following tariffs. Nearly half, 48%, are paying close attention to inflation. And 80% of consumers are either concerned or very concerned about the impact of rising prices on their finances. “Consumers are primed to expect price increases,” Shank said. Operators, unsurprisingly, are worried about their costs. The vast majority, 84%, told Technomic last quarter that they were worried about food costs. Nearly two-thirds, 65%, said they were worried about labor costs—though that was down from 79% in the first quar - ter. And 65% are worried about tariffs, according to Technomic. There is some contradiction in sur - vey data on tariffs, however. Near - ly three-quarters of operators told Technomic they are confident they can manage the higher costs. And 71% said they taken steps to protect themselves from tariffs. But only 24% of operators are very familiar with the tariff sched - ule. So operators are confident in their ability to withstand the problem but they are not entirely familiar with what the problem actually is. All this is coming as the restaurant industry is dealing with weak sales. Technomic expects limited-service sales to rise between 3.7% to 4.8% this year. But, Shank said, “We’re trending toward the lower end.”
Industry outlook Rich Shank of Technomic presents a deep dive into current restaurant market trends, inflation impacts, and evolving consumer behaviors. A must-watch for those seeking strategic insights in a rapidly shifting environment.
Loyalty in the digital age Restaurant executives discuss how brands can use technology and first- party data to create a 360-degree view of their guests, remove friction, and, most importantly, drive return visits.
FSTEC 2025 | 23
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