Houlihan Lokey – U.S. Restaurant Industry Update, Summer 2025

The main theme of the report is the analysis of current trends and challenges faced by the U.

S. restaurant industry in 2025. Key findings include: Restaurant operators face pressure from a challenging macroeconomic environment, including labor shortages, wage inflation, and rising raw material costs. The casual dining segment is becoming the preferred choice for consumers seeking a more valuable offering compared to fast casual brands. Consumers are willing to pay a premium for quality coffee despite inflationary pressures. Changes in consumer behavior are making them more selective about restaurant visits. There is pressure on traffic and declining sales even among strong operators. Market consolidation and M&A activity are accelerating.