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Restaurant owners entered 2025 feeling generally optimistic as they find new ways to keep up with change. The industry has embraced technology solutions to tackle staffing, process and efficiency challenges, and 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. Now, restaurant operators have fresh priorities to stay competitive and grow their businesses.
To understand restaurant operators’ current goals and challenges, as well as what customers want from dining experiences this year, Square teamed up with Bredin to survey 2,000 restaurant owners and managers and 4,000 customers across the US, Canada, the UK and Australia.
After analysing the UK survey results, insights from the Square restaurants team, and interviews with restaurateurs, here are the most compelling trends shaping the British food and beverage industry. For a more in-depth look at these 2025 industry trends, download the full 2025 Future of Restaurants report.
Restaurants are finding new ways to meet diners’ high expectations
As consumers tightened their belts over the last 12 months, UK restaurants pulled out all the stops to keep diners coming through their doors. They told us they’ve been offering different types of deals, from loyalty programme discounts (43%) to discounted or bonus gift cards (39%) and happy hours (38%). These efforts have paid off and diner satisfaction is high for both dine-in and delivery experiences (82% and 77%, respectively).
However, these initiatives have set new – and unrealistic – diner expectations. Nearly half of consumers expect to see these kinds of discounts continue, while 76% of restaurant leaders are planning to increase their prices in 2025. So how can restaurateurs protect their margins while ensuring customers feel like they’re getting great value?
This is where technology can help. Your point-of-sale (POS) system should hold a wealth of data that can help you find more ways to keep profit in your pocket. With Square for Restaurants and the Square Dashboard app, you can easily access data from all areas of your business so you can make critical decisions quickly and confidently. With data-driven insights, you can optimise your menu based on sales, manage inventory, anticipate seasonal staffing demands and prepare for unexpected expenses.
Restaurateurs want to save time, and that means incorporating technology
Restaurateurs around the UK can all agree on one thing: there are never enough hours in the day. And the demands on their time only seem to be increasing. Four in five restaurant owners are spending more time on business operations than they did a year ago. A prime example is hiring: while most restaurateurs (61%) told us hiring is getting easier, an even greater number (76%) told us it’s getting more time-consuming.
Restaurant leaders are turning to technology to find those all-important efficiencies. Seventy-nine percent of respondents told us they’re looking into implementing different technologies that could save them time. This ranges from intuitive ordering technology (like self-serve kiosks), all-in-one back-end systems and AI-powered staff scheduling.
If you’re looking for ways to win back some hours in your work week, start by streamlining your team’s time. Tools like Square Shifts help you track hours and accurately pay employees, reducing a significant friction point so everyone can focus more on productivity and customer service.
Automation in restaurants is necessary – but also divisive, if you ask customers
The vast majority of restaurant owners we spoke to are sold on the importance of AI and automation and 87% intend to invest in technology in 2025. There’s notable optimism about the potential for AI and automation to improve a whole host of business functions, with the most popular being staff training (82%), marketing/promotion (81%), menu optimisation (81%) and payments (80%).
However, consumers still have doubts when it comes to automation. Just under a quarter of respondents didn’t want restaurants to use any kind of automation – even when there are gaps due to understaffing. It’s clear that human interaction is still an essential part of the dining experience, with consumers continuing to value the personal touch over operational efficiency.
The first step for restaurateurs looking to balance technology and human interaction is to identify the areas where technology can enhance your operations, while ensuring that diners always receive friendly and intuitive service from experienced staff where it matters most. We’d recommend starting with back-of-house automation that’s invisible to customers, such as automatic timecards and tip calculations. When you’re ready to introduce front-of-house automation, like self-ordering kiosks, make sure you have staff on hand to troubleshoot.
Loyalty programmes are key to boosting your business
Restaurant owners who have invested in loyalty programmes are reaping the rewards. Respondents told us that their programmes are driving up key metrics like order size (85%) and repeat visits (84%), ultimately generating a positive ROI. That’s why more than three-quarters of them are planning to increase investment in their loyalty programme this year.
To create a successful restaurant loyalty programme, it’s crucial to identify what will resonate with your customers. That means digging into your sales data and aligning rewards with customers’ past purchases. If you offer a customer an exclusive discount on their favourite dish, they’ll feel much more valued than if you offered five discounts that had nothing to do with their personal tastes.
To get started, contact your POS provider to see if they have loyalty programme functionality. Remember, an off-the-shelf programme will only get you so far; to make a step change you need to customise your programme so it’s convenient and compelling for your audience. If you’re with Square, you can personalise your promotions so your loyal customers feel the love.
Restaurant operators see multiple revenue streams as a path to growth
Restaurant leaders are expanding their idea of what makes a successful operation. Three-quarters of respondents told us that non-core retail or service offerings are critical to their growth plans. Almost a third have introduced a membership or club in the past year as more and more restaurants move to a multiple revenue stream model.
Consumers told us they’re open to restaurants offering more than just made-to-order food, with 67% interested in purchasing items outside of the menu. This includes prepackaged food or beverages, catering services, kitchen supplies (eg cookware), branded clothing, subscription boxes and books.
It can be quite simple to introduce alternative revenue streams into your business. Try packaging up your best-selling food products to assess your customers’ appetite for prepackaged goods. Talk to your loyal customers to find out which extras would appeal most and test out new concepts on a small scale. Whatever new directions your business takes, the Square for Restaurants ecosystem can support multiple revenue streams, keeping all the data in one place so you can see what’s working and adapt accordingly.
Customers want more convenient ordering and payment experiences
So much about the restaurant experience changed in the last five years, not least the way customers place an order and settle the bill. Ordering and payment technologies that were unknown before the pandemic have become the new normal. Today, mobile POS and online checkout drive the most orders for restaurants at 84% and 82%, respectively.
Consumers aren’t wedded to particular types of technology – for them, it’s all about convenience. If you’re not making it quick and easy for your customers to transact with you, the chances are you could lose them. Sixty percent of customers told us they probably wouldn’t return to a restaurant that didn’t have convenient ordering and payment methods.
What customers find convenient varies by age. While 69% said they find self-service kiosks convenient, it’s typically younger diners who are happy to tap their order on a screen, whereas older generations want to place their order with a person. That’s why it’s critical to understand your audience: if it skews younger, this technology could be a valuable addition to your business; if your regulars are traditionalists, be wary of forcing change on them. Start by reading up on newer ordering technology and talking to your POS provider about which solutions best suit your restaurant profile. Then check in with your core diners about which technologies they’re open to trying and run a test.
Want a deeper look into how restaurants are innovating in 2025? Get more information on these popular restaurant trends in our 2025 edition of the Future of Restaurants report.
