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Restaurant owners are entering 2025 feeling optimistic as they find new ways to keep up with change. With rising costs and consumer expectations, the focus is shifting from just serving great food to offering that little extra that makes a brand memorable. Technology is playing a big part, but it’s not just about tech for tech’s sake – it’s about finding better ways to keep customers (and staff) happy.
We’ll explore the top trends shaping the Australian restaurant scene, based on insights from 500 local restaurant leaders and 1,000 consumers. The data shows that restaurants are embracing new tools, streamlining operations and expanding into fresh revenue streams, all while finding ways to keep their most loyal customers engaged.
These findings are part of the broader 2025 Square Future of Commerce report, where Square partnered with Bredin to survey 6,000 business leaders and 4,000 consumers across the restaurant, retail and beauty sectors in Australia, the US, Canada and the UK. All the data provided below comes from these survey results. For a more detailed look at all the restaurant trends to help you navigate 2025 and beyond, download the full 2025 Square Future of Restaurants report.
Consumers are spending less, but their expectations are higher
With 68% of Australian consumers surveyed saying they’ve cut back on restaurant spending in the past year – including dine-in, takeaway and delivery – businesses have had to step up their game to keep customers coming through the doors. In response, almost all Australian restaurant leaders (99%) told us they’ve expanded their value offerings, from discounts and loyalty programs to special deals and coupons.
While that’s been great for business, it’s also set new expectations. Almost half of diners now expect these deals to stick around. But with 73% of restaurant operators planning to increase menu prices to offset rising food and wage costs, there’s a fine balance to strike.
This is where technology can come in handy. Restaurant leaders can use data analytics and smarter point-of-sale (POS) systems to fine-tune their pricing. By looking at which menu items are hits and which ones aren’t, they can make smarter choices. For example, diners might be more open to paying a little more for their favourite dish, rather than seeing a price hike across the entire menu. With the help of data, restaurants can strike that perfect balance – keeping customers happy while still turning a profit.
Restaurateurs want to save time, and that means incorporating technology
There’s always a lot to juggle in running a restaurant, and in 2025, restaurant owners said managing time is their biggest challenge. Compared to last year, around three in four owners said they’re spending more hours on every aspect of business operations we asked them about, from managing finances to marketing and training staff. Even though hiring is getting easier (66% say recruitment has improved), the workload hasn’t eased up.
To claw back some of that time, leaders could use this year to think about the bigger picture for their businesses. This includes exploring how simplified ordering systems, inventory management software and all-in-one, back-end systems can help cut down on manual work and keep the kitchen running smoothly, even during busy times.
For those unsure where to start, scheduling software can be a good place to start testing. Tools like Square Shifts help retail leaders streamline tracking hours, rostering and payroll prep. After all, the more you can save on operations time, the more time you can spend on delivering great food and experiences for your customers.
Automation in restaurants is necessary – but also divisive, if you ask customers
Technology is a big topic in this year’s Future of Restaurants report. Automation is making a real impact in the industry, with a resounding 99% of restaurants using it to boost efficiency in one way or another. From self-service kiosks to automatic booking reminders, they’re seeing the potential to work smarter, not harder.
Restaurant leaders believe automation will improve all 15 business areas we asked about, with marketing, staff management, payments, inventory management and menu optimisation equally topping the list at 80% each.
But while restaurant owners are excited, not all diners are on board. While 71% of consumers are open to automation in some areas – especially when staffing is short – that leaves a solid 29% who don’t want it at all. Many still value human interaction, like having a knowledgeable server who can recommend dishes or adjust an order to suit their needs.
Integrating automation while keeping a personal touch is an ideal approach to satisfy both tech-friendly and traditional diners. For instance, Square for Restaurants POS and Square Kitchen Display System (KDS) work together to speed up order-taking and streamline back-of-house tasks – all while freeing up staff to engage with customers, personalise orders and get food out faster. The goal is simple: let tech handle the repetitive stuff so staff can focus on the things that matter.
Loyalty programs are key to boosting your most important business numbers
Loyalty programs are proving to be one of the most effective ways to keep customers coming back and spending more. According to our 2025 survey data, restaurants with a loyalty or reward program said it’s highly successful in driving order size (85%), repeat visits (84%) and return on investment (81%).
The key to a successful loyalty program? Offering customers what they actually want. When polled, two-thirds of diners ranked personalisation among the top three most valuable aspects, behind exclusive discounts and earning rewards. Think tailored rewards based on diners’ past purchases, making deals feel meaningful and enticing to them.
A great loyalty program starts with understanding what excites your customers. Dig into your sales data to see what resonates with your diners. Square Loyalty makes it easy to design personalised rewards by letting you customise whether customers earn points based on visits, amount spent or categories purchased. Plus, with real-time insights on top loyalty customers and loyalty-related sales, you can fine-tune promotions to keep engagement high.
Restaurant operators see multiple revenue streams as a path to growth
Beyond serving great food, restaurateurs are looking for new ways to grow and stay ahead of the game. A strong 82% of restaurant owners said that non-core offerings – like merchandise, catering and subscriptions – are a key part of their growth plans.
And customers are responding. More than half (52%) bought a retail item or service from a restaurant in the past 12 months, with over a quarter (27%) purchasing four or more. Extras that consumers are most keen on include pre-packaged food or beverages, catering services, kitchenware, subscription boxes, branded clothing, in-person classes and memberships, giving restaurants lots of ways to showcase their brand and offer something unique.
For restaurant leaders looking to dip their toes into retail, consider testing ideas in easy, low-risk batches. Bottling up best-selling sauces or launching a limited-edition merch drop, for instance, can gauge interest without overwhelming your operations. Checking sales data and gathering customer feedback can help you work out which products have the most long-term potential.
And if you’re still on the fence, take inspiration from Fricken Fried Chicken in Canberra. They launched themed event nights and take-home packs of their popular sauce range, helping them diversify revenue while giving customers more ways to enjoy their brand.
Customers want more convenient ordering and payment experiences
Convenience is king in restaurant transactions. Online checkout (83%) and in-app payments (79%) are now the top methods used by consumers to place restaurant orders, with self-service kiosks also gaining traction (69%).
But traditional payment methods aren’t disappearing. A majority of customers (86%) still find paying at a register convenient, and 75% prefer handing their payment to a server. This mix echoes a sentiment we talked about earlier: while technology is helping to make restaurant processes more efficient, there’s still a strong demand for human interaction.
Age also plays a role in tech adoption. Younger diners (18–43) are much more comfortable with in-app payments and kiosks, while those 44 and older are less enthusiastic. For restaurant owners, understanding their audience is key – what works for a trendy cafe buzzing with Gen Z customers might not be the best fit for a classic, family-run bistro catering to an older crowd.
Restaurant leaders should keep a pulse on which payment methods are bringing in the most orders while balancing both customer and staff preferences. Offering your essential payment options while integrating more modern options (such as Square Kiosk) not only provides flexible ways to order to pay but also helps reduce bottlenecks and speed up service.
Customers and restaurants really don’t agree on fees
Diners get that restaurant prices are bound to go up – just like everything else. But what’s rubbing them the wrong way is extra fees tacked on at the end of the bill.
A sizable number of Aussie consumers surveyed find certain fees – like late arrival fees (37%), minimum tip settings (20%), and kitchen appreciation fees or living wage surcharges (19%) – unacceptable. But here’s the reality: more than a third of restaurant operators are charging at least some of these fees.
For restaurants, it’s a tough spot. With costs rising, some feel they have no choice but to add fees. But customers don’t always see it that way, and unclear pricing strategies can put them off.
At the end of the day, if you have to charge fees, it’s still important to communicate them in a way that customers can understand and accept. A simple explanation on your menu or website can help set expectations and build trust. Sure, not everyone will love it, but being honest and transparent might win you more goodwill than you expect.
Want to read more in-depth insights on how restaurants are innovating in 2025? Find more info on all the latest restaurant trends in the 2025 Square Future of Restaurants report.
