CHICAGO, November 20, 2025 —Two of every 3 restaurant operators are exploring the replacement of their current suppliers with alternative sources as a way of holding down costs, according to new research from the technology company Popmenu.
The survey of 300 restaurateurs nationwide also revealed that the most common means of protecting margins is by striving to cut food waste, with 76% of respondents saying they’ve embraced that tactic.
Overall, 82% of the participating restaurants said they are actively searching for savings opportunities.
The research, conducted at the tail end of summer, paints a sobering picture of the restaurant business, the largest portion by far of the food-away-from-home industry. The major concern, according to the data, is the erosion of profits by climbing food costs.
Respondents reported that their food costs have risen by 29% over last year’s levels, and 40% said they have cut their purchases of food and beverage supplies. It is not clear from the report if the restaurants spent less because of spiking costs or if decreasing demand trimmed their needs.
Popmenu also noted that operators are having a difficult time maintaining their top lines as well. A consumer survey conducted by the company earlier this year found that 61% of consumers are cutting back their restaurant spending.
In the more-recent survey, 64% of operators said they President Trump’s “America first” protective tariffs to prompt further reductions in sales and traffic. The import duties were expected to raise the wholesale cost of foods and nonperishable products, which would then pressure operators to raise menu prices.
However, the survey of restaurateurs was conducted before Trump lifted the import duties on many foods that are routinely purchased by restaurants, such as coffee and bananas.
About 64% of the respondents said they expect the nation to slip into a recession within the next year.
"Ongoing concerns around inflation, trade wars, weaker consumer spend and other economic headwinds are prompting restaurant operators to take actions that protect margins and profitability," Brendan Sweeney, Popmenu’s CEO and co-founder, said in a statement. “Consumers may see fewer menu options or changes to dishes, more meal deals and more tech-driven experiences at their favorite eateries."
Popmenu says its products and services are currently used by 10,000 restaurants in the United States, Canada and the United Kingdom to engage customers and keep a tight rein on costs.
The company’s complete State of the Plate 2025 report can be found here.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.