As we approach 2025, the restaurant industry is undergoing a significant transformation. Shaped by evolving consumer preferences, technological advancements, and global trends, the landscape is shifting in ways that could redefine the dining experience. At the heart of this change lies a key factor: the changing demographics of the modern consumer. Gen Z is becoming the dominant consumer and workforce group across the restaurant industry. Additionally, an increasingly diverse population in global cities is demanding that restaurants consider a wider range of cultural and dietary preferences.
As family dynamics evolve and the senior population grows, the industry must also adapt to accommodate older customers who seek more relaxed dining environments. The rise of delivery and ghost kitchens will further alter the traditional restaurant model.
This article delves into the changing demographics of the restaurant industry in 2025, offering the latest insights on how businesses can stay ahead in the rapidly dynamic and ever-evolving marketplace.
Key Trends Behind the Changing Demographics of Restaurant Industry in 2025
1. The Rise of Generation Z in the Workforce
The restaurant industry is witnessing the significant rise of Gen Z individuals as a workforce in the hospitality industry. Generation Z (typically known as Gen Z) is typically defined as those born between 1997 and 2012. According to research from the National Restaurant Association Educational Foundation (NRAEF) and the Center for Generational Kinetics, Gen Z individuals have shown positive perceptions of working in the restaurant industry. Rob Gifford, an executive vice-president of NRAEF, also argued that 82% of Gen-Z respondents in their survey said that restaurant was their first paid job. Moreover, 1/3rd of them aspire to become restaurant managers, operators and even owners. Some of the key findings from this research are:
Gen-Z individuals think working in a restaurant helps elevate their teamwork and multi-tasking skills.
40% of Gen-Z thanked their mentors in restaurants for building their confidence and professional skills
Gen-Z strongly agreed on restaurant jobs for being creative, active & flexible – something that’s too rare to find.
According to renowned organizations like Zurich Insurance Group and The World Economic Forum, Gen Z will account for around 27% of the workforce population by 2025. The massive rise of Gen Z in the restaurant workforce will surely make a significant impact on the industry. Known for their tech-savviness, desire for flexible work environments, and value-driven approach, Gen Z employees expect more than just a paycheck. They seek workplaces that reflect their ethics, diversity, and commitment to sustainability.
How to Cope with it?
Considering the changing demographics of the restaurant industry in 2025, we would like to suggest a few suggestions for restaurants.
Solution #1: Implement flexible schedules that allow for work-life balance, including options for part-time, remote work for administrative roles, and shift trading.
Solution #2: Create a workplace culture that promotes sustainability and diversity. This way, you can perfectly align with Gen Z’s values.
2. Catering to Diversity: Inclusive Menus and Cultural Sensitivity
With an increasingly diverse population across many regions, the restaurant industry is seeing heightened demand for culturally diverse and inclusive menu options. This shift is not only about meeting dietary needs but also acknowledging the varied cultural backgrounds of diners. Many global cities like London, New York, Seoul, Melbourne, Paris, Mumbai and Shanghai are multicultural. Considering this, restaurants must expand their menus to include dishes that reflect a broader spectrum of ethnic cuisines.
Inclusivity also extends to accommodating specific dietary restrictions such as gluten-free, dairy-free, and low-carb diets. The growing awareness of food allergies, along with a surge in veganism and flexitarian eating habits, has pushed restaurants to offer specialized menus. According to Izzy Kharasch, founder of Hospitality Works, “2025 will witness an incredible rise of plant-based items in menus. As of now, 50% of restaurants are offering plant-based options”. Eventually, this number will grow significantly.
How to Cope with it?
Solution #1: Restaurants should diversify the menu by incorporating globally inspired dishes and catering to specific dietary needs, such as plant-based, gluten-free, and halal options. Moreover, they should regularly update the menu to reflect changing trends in food culture.
Solution #2: Consider training your staff members on cultural sensitivity and customer service for diverse audiences. Understanding these nuances will allow your staff to better engage with diverse customer groups.
3. Shift in Consumer Behavior: The Surge in Food Delivery Services & Ghost Kitchens
In recent years, the way people consume food has changed significantly, with a market shift toward food delivery services and the rise of ghost kitchens. In today’s fast-paced world, food delivery services have become an essential part of everyday life for many. Apps like Uber Eats, DoorDash, Deliveroo, and Grubhub have transformed the food industry by offering a wide selection of restaurants that are at consumers’ fingertips. According to Statista, the market revenue of online food delivery was found to be over 1 trillion US dollars. Moreover, this number is estimated to make a massive jump by reaching $1.6 trillion by 2027. At the same time, ghost kitchens are projected to account for 50% of the market share of takeaway or drive-thru food service markets.
As food delivery services and ghost kitchens grow, they are likely to become permanent fixtures in the global food industry, reshaping how we eat and access meals. According to Future Market Insights, 70% of Millennials and Gen Zers prefer online food delivery options. In 2025, this trend will further escalate its impact, becoming a significant transformation in the restaurant industry.
How to Cope with it?
Considering the changing demographics of the restaurant industry in 2025, here are ideal solutions to stay ahead of this.
Solution #1: Consider integrating delivery options into your business model by partnering with popular food delivery apps, creating a strong presence on those platforms.
Solutions #2: Explore setting up a ghost kitchen to focus solely on delivery orders. Alongside this, you can also maintain your space for full-service dining.
Navigate the Ever-Evolving Restaurant Industry with PocketTrainer!
In conclusion, the restaurant industry is set for significant transformation by 2025, driven by the rise of Gen Z in the workforce, increasing cultural diversity, and the growth of food delivery services and ghost kitchens. As these shifts unfold, restaurants must adapt by creating inclusive menus, offering flexible work environments, and embracing delivery technologies to meet evolving consumer preferences. By staying agile and responsive, businesses can thrive in this dynamic landscape.
To enhance your workforce management in this changing environment, consider PocketTrainer, an innovative online skill-development app designed for hospitality employees. It offers comprehensive training modules, Food & Beverage Manuals, a Ready-Made Course Library, Quiz Masters, and a Document & Video Hub to streamline operations. Download PocketTrainer today to elevate service quality in restaurants, bars, and hotels. Navigate the changing demographics of the restaurant industry in 2025 with us!
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