It’s that time again, when trend watchers set off their predictions of what to expect in the new year in the food and beverage industry. We’ve curated the cream of the crop to ensure you have the next best thing to a crystal ball: Five key trends with far-reaching impact for our industry in 2025.
Rising food prices have become too much for consumers to stomach. Sixty-five percent of Americans were shocked at the price of a fast food order, according to a Lending Tree survey.1 Once considered a go-to budget-friendly food source, fast food has seen a falloff in sales, due in large measure to price hikes. Seventy-eight percent of consumers now see it as a luxury, and 62% are eating it less often.1
As a result, major brands have been busy cooking up ways to offer more value. Burger King and McDonald’s announced plans to beef up their menus with more $5 limited-time offers, and Domino’s is delivering more value through its loyalty program.
On the retail level, 37% of consumers have found their monthly grocery spending has become unaffordable, and 1 in 8 call it “very unaffordable.”2
“Pricing has never been more important to both businesses and consumers,” said Pascal Yammine, CEO of price optimization software provider Zilliant.2 As Yammine put it, “The key is aligning prices with value and maintaining transparency that builds trust.”
While margins are likely to remain tight and retailers and operators will need to avoid eating losses, expect a growing emphasis on discounts, bundling and rewards to win customers back.
When it comes to driving sales, nonalcoholic beverages have become the toast of the restaurant industry.
This rising tide of popularity is particularly evident in the growing interest in global varieties. Forty-four percent of U.S. consumers are thirsty for globally inspired nonalcoholic beverages.4 Italian affogatos (typically a shot of espresso poured over gelato or ice cream) perked up 28% on U.S. menus in just 12 months.4
Coffee cafes and specialty beverage concepts have been brewing up big business, posting sales growth that’s sure to spill over into 2025. Krak Boba is forecast to close out 2024 with 102% sales increase, and 7 Brew Drive Thru Coffee edges it out at 103%.4 With growth like this, we can expect the floodgates for the nonalcoholic beverage boom to remain open in 2025.
Driven by a hunger for cost-savings, consumers are bypassing delivery fees in favor of drive-thrus, carryout and curbside pickup.
Research showsthat 47% of U.S. consumers will ditch a restaurant without a drive-thru, and 32% said they would always choose the drive-thru option when available.5 Over half cite drive-thru as their preferred way to order from quick-service restaurants.6
New drive-thru formats and innovations are accelerating the shift. Taco Bell’s Defy drive-thru concept offers four drive-thru lanes, and other major brands including Panera, McDonald’s, Burger King, and KFC have increased drive-thru capacity.
Expect the shift toward drive-thru to prompt more restaurant brands to invest in new, high-profile store formats that offer the speed and convenience of multiple lanes for preorders versus on-site ordering. And cost savings on delivery fees could fuel higher check averages at drive-thru.
While some brands may have feared that GLP-1 drugs like Ozempic and Wegovy would thin out profits by causing people to eat less of their products, an opportunity has emerged.
“The more balanced perspective is that these weight loss medications give brands the opportunity to create products that cater to the nutritional needs of this new — and growing — category of consumers,” explained Meghan Flynn, director of public relations for The Food Group. “Food and beverage brands have a lot to gain from such weight loss drugs because they can help users meet their nutritional requirements and weight loss goals. The narrative now should be, ‘We’re here to help.’”
Nestlé is taking advantage of this new horizon with Vital Pursuit, a frozen food line tailored to the needs of GLP-1 users. Nutrient-rich, portioned-aligned and high in protein, Vital Pursuit meals bite into a promising new market that we can expect other brands to dig into in 2025.
The smart money is on the rapid growth of AI, as far as many foodservice operators are concerned.
Thirty-six percent of operators think AI will transform the food industry in the next five-10 years.7 While only 27% agree that AI systems will be better and more efficient at food preparation than humans,7 consumer confidence in many different types of AI applications in foodservice is growing.
What Kinds of AI Do Consumers Crave?8
Many brands are leveraging AI to streamline operational efficiency and enhance the customer experience. Wendy’s uses voice automation and AI chatbots to speed orders at the drive-thru, while KFC uses facial recognition at in-store kiosks for personalized menu recommendations.
That said, 66% of operators agree that stricter laws and regulations are needed regarding AI development in the foodservice industry. 7 Look for the new year to usher in further AI integrations that balance caution with creativity.
We’ll continue to dish on developments throughout the year. To maximize business in 2025 with insight-driven, trend-savvy marketing solutions, contact us anytime.
1 Littman, Julie, “Fast food is too expensive, says a majority of Americans,” Restaurant Dive, May 29, 2024
2 Levitt, Craig, “Trendspotting: Consumers yearning for lower grocery prices,” Product News, November 22, 2024
3 Technomic, What Will Thrive in 2025: Annual Outlook Webinar
4 Datassential, World Bites: Drink Up Global Beverages, March 2024
5 Zukolsky, Christine, “Americans Avoid Businesses Without a Drive-Thru,” The Food Institute, August 10, 2023
6 Shriber, Sarah, “QSR Consumer Insights: Majority Prefer Drive-Throughs, Gen Z Leads Way for Online Ordering,” CivicvScience, May 30, 2023
7 Datassential, AI: The Operator Perspective, 2024
8 Datassential, AI: The Consumer Perspective, 2024