Key Trends Shaping the Restaurant Industry in 2025
January 22, 2025 | 1 min to read
The restaurant industry is facing ongoing challenges, including closures, as major brands like Wendy’s and Denny’s shut down numerous locations. Additionally, notable names like Red Lobster and TGI Fridays have filed for Chapter 11 bankruptcy. According to Jim Balis of CapitalSpring, these closures, while painful, may offer a strategic advantage for other businesses navigating similar difficulties. The dynamic landscape is expected to continue evolving through 2025.
As the restaurant industry adapts to shifting consumer preferences, economic challenges, and the rise of digital dining, Food On Demand explores key trends shaping the landscape in 2025.
Continued closures and impact
The restaurant sector has seen its fair share of closures recently, with some of the biggest brands scaling back, a trend likely to continue.
Wendy’s closed 140 locations and Denny’s shut down 150 underperforming stores. Meanwhile, several brands, including Red Lobster and TGI Fridays, filed for Chapter 11 bankruptcy.
Jim Balis, a partner at Strategic Operations Group at CapitalSpring, a PE firm that’s invested nearly $3 billion into restaurant and foodservice brands, weighs in on the closures, saying that while painful, they often provide cover for other businesses doing the same.
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