Restaurant Ins and Outs for 2025

As we enter 2025, the restaurant industry is at the crossroads of innovation and evolving guest expectations. Brands are no longer just about serving great food-they're about building lasting relationships, creating frictionless experiences, and acting on deep, data-driven insights to stay ahead in a competitive market.

Industry leaders are thriving by abandoning outdated practices like one-size-fits-all marketing, clunky guest experiences, and costly homegrown solutions in favor of seamless integrationand nimble, strategic approaches to guest engagement.

Here's what's in and out this year.

Ins

Tending to your guest data "garden"

Think of your guest data as a garden. If you don't nourish it (with enriched, purposeful data) and weed out anything that doesn't add value (like removing bounced and unengaged email addresses from your contact list), you won't be able to reap the benefits. To grow your first-party guest data and maximize profit, you must empower guests to order directly through your restaurant's website and app. When you own your guest relationships, you can leverage everything you know about them-from favorite menu items to preferred marketing channels-to drive retentionand make smarter business decisions.

Seamless, insightful payments

Effortless payments are a must for guests and restaurant operators. The right payment stackwill support mobile wallets like Google Pay and Apple Pay, offer high authorization rates and fraud prevention, and fully integrate with your guest data platform. By consolidating transaction data from across channels-online, in-store, catering, kiosk, etc.-into a single platform, you gain a comprehensive view of guest behavior and preferences, which enables you to track performance metrics, sales trends, and revenue across your business. Additionally, the more data you have about each transaction, the easier it is to personalize the guest experience.

"Known regular" treatment

The bigger a restaurant gets, the smaller it needs to act. Simple yet powerful moments, like a barista remembering your order, create the "Cheers effect"-the feeling of being a regular, welcomed, and remembered. While small restaurants can do this organically, technology becomes crucial for larger brands to replicate it-from enabling guests to personalize their digital orders to freeing up staff to make genuine human connections. Using technology as the foundation to act small, operators can stay true to the hospitality in their DNA and ensure every guest feels like a regular.

Strategic promotions

While irresistible deals can be a powerful marketing tool, discounting in a way that is helpful only in the short term erodes franchisee profitability and value perception in the minds of restaurant guests. Brands need to be very thoughtful with how they use deals and take a surgical approach to increase guest value over time and create new cravings.

Outs

Forced service models

Offering flexibility in service options is essential for creating a welcoming dining experience that keeps guests coming back. By giving guests the freedom to choose how they engage with your brand-whether it's ordering through a server, paying via QR code, having food delivered or catered, dining late at night, or enjoying a contactless experience-you create opportunities to meet their unique preferences. A flexible approach enhances guest satisfaction and helps your brand stand out in a competitive market.

Friction-filled experiences

All types of friction frustrate and deter guests. This includes everything from unnecessary form fields and checkboxes to requiring guests to reenter their regular drink order every time they visit. Restaurants that offer seamless ordering and payment experiences that make guests feel known-in-person and online-will prevail.

Loyalty-only focus

Restaurants that focus solely on loyalty program members risk ignoring high-value guests. Remember, a loyalty program is considered high-performing if it accounts for just 25-35%of a restaurant's guest base-and that may not include the guests who drive the most revenue. If you can't identify your best guests, you can't replicate the best guest experience or find more guests who exhibit those same behaviors and preferences.

Building in-house tech

Custom tech solutions are often costly, risky, and less effective than software-as-a-service (SaaS) platforms. Yet, some restaurant brands still think they have to build in-house. In reality, enterprise-grade can enable greater innovation at a fraction of the cost. A tech company that specializes in a solution will put the needed resources, rigorous testing, and world-class engineers behind it so you can focus on what your brand does best. If your restaurant is too focused on building common tech components, your food and guest experience may suffer.

In sum, the future looks bright

The future of the restaurant industry isn't just about adapting to change-it's about staying one step ahead.

In 2025, success will come to those who put guests first, harness the power of technology to act small even as they grow, and make data-driven decisions that drive loyalty and retention. Watch this 3-minute videoto learn how Olo's Guest Data Flywheel helps restaurants do just that.

As restaurants continue to innovate and refine their strategies, one thing remains constant: the heart of hospitality lies in making every guest feel valued, remembered, and delighted-whether they're visiting a local cafe or a global restaurant brand.

Ready to take your restaurant brand to the next level? Subscribe to The Olo Feed for proven strategies and talk to an Olo expert to learn how our solutions can help you increase orders, streamline operations, and improve guest experiences in 2025.

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