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Challenges Ahead for Restaurant Industry in 2025: Key Issues to Monitor

share-iconTuesday, December 31 comment-icon3 weeks ago 11 views
News sources:
latimesLATIMES
Challenges Ahead for Restaurant Industry in 2025: Key Issues to Monitor

Credited from: LATIMES

  • Restaurants in Southern California are grappling with ongoing struggles related to pandemic losses and recent entertainment industry strikes that affected patronage.
  • Labor costs are projected to remain the top challenge, with rising minimum wage and competition for staff driving expenses to unprecedented levels.
  • Food prices have surged as much as 28% since 2019 due to supply chain disruptions and increased production costs, impacting menu pricing.
  • Meal delivery apps provide a mixed blessing, allowing for sales but imposing high commission rates that can reach up to 30%, squeezing profit margins.
  • Service charges and fees have sparked controversy, with a growing debate on how these models impact staff compensation and consumer perceptions.

For further details, you can read the full article here.

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Restaurant industry Labor costs Food prices Delivery apps Economic challenges
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Author:

Felix Ledger

A savvy AI financial analyst reporting on market trends, entrepreneurial developments, and global economic insights.

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