Cooking Up Profits, One Trend at a Time

At a Glance

• Main Takeaway: The restaurant and franchise industry is being reshaped by emerging technologies, shifting consumer preferences, and evolving operating models.
• Business Impact: Operators embracing innovation are outperforming peers in profitability, brand loyalty, and market adaptability.
• Next Steps: Connect with Aprio’s Restaurant, Franchise and Hospitality team to uncover data-driven strategies that unlock new levels of performance.

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The Full Story

The restaurant and franchise space is undergoing a seismic shift: Restaurant operators and franchisors are contending with compressed margins, a labor-constrained environment, and rising expectations from both consumers and investors. Those who leverage digital transformation, sustainable practices, and data transparency are primed to outpace the competition.

From artificial intelligence to ESG integration, the restaurant and franchise industry is moving fast. Below are the most influential trends redefining profitability and long-term success in the sector.

1. Dynamic Pricing and AI-Driven Menu Optimization

Restaurants—particularly those in the QSR and fast-casual sectors—are turning to AI and machine learning to optimize menu pricing in real-time. Factors like local demand, weather, time of day, and competitor pricing feed into algorithms that generate dynamic pricing recommendations, similar to models used by airlines and rideshare apps.

While this allows operators to finetune margins without blanket price hikes, it also introduces new complexities around brand equity and guest trust.

Key Considerations:

• Enhanced margin control without alienating customers through broad price increases
• New pricing vendors emerging (e.g., Presto, Juicer) with predictive analytics and mobile integration
• Potential legal and ethical concerns about transparency and pricing fairness
• Franchisee buy-in is essential—especially in systems where pricing autonomy has historically resided at the unit level

Pro Tip: Operators considering dynamic pricing should develop a clear communication plan for both franchisees and consumers to mitigate resistance.

2. Labor Optimization Through Automation

Automation has moved beyond back-of-house and is now reshaping the entire labor model. Innovations in AI-driven scheduling tools, order-taking bots, robotic food prep (like Miso Robotics’ Flippy), and autonomous delivery are gaining traction.

Industry Stats:

• 56% of franchisors cite labor constraints as a key barrier to growth (2025 IFA Franchisor Survey)
• 64% plan to invest in automation and operational technology to offset workforce gaps

Emerging Trends:

• Kiosks and mobile apps reducing front-line labor demands
• Wearable tech and IoT integration for real-time kitchen management
• Flexible wage models tied to performance and digital tips

Pro Tip: Consider automation not just as a labor substitute, but as a way to elevate team experience by reducing repetitive tasks and enabling a more strategic workforce.

3. Third-Party Delivery Margin Wars

Delivery remains a double-edged sword. Third-party platforms drive traffic but extract hefty commissions. Restaurants are responding by pivoting toward:

• White-label delivery partnerships (e.g., Lunchbox, Otter)
• In-house fulfillment and exclusive app-based promotions
• Hybrid ghost kitchen models that prioritize margin over footprint

What’s Working:

• Loyalty apps with built-in ordering are gaining repeat customers
• Subscription-based delivery perks are driving customer retention
• Consolidation among delivery platforms may open new negotiation levers

Pro Tip: Integrate POS and inventory systems with delivery platforms to maintain control over quality, pricing, and data ownership.

4. Franchisee Profitability Transparency

As franchise systems mature, successful franchisors are recognizing that franchisee profitability is not just a selling point, it’s a foundational brand metric. Leading brands are:

• Providing enhanced Item 19 disclosures
• Sharing unit-level economics and benchmarking tools
• Co-investing in shared service platforms, including accounting, marketing, and HR

Top Focus Areas:

• Cross-functional dashboards to align marketing spend with sales performance
• Shared technology infrastructure that reduces administrative burden at the unit level
• Collaborative governance models to reduce franchisor–franchisee tension

Pro Tip: Offer a Franchisee Profitability Playbook that pairs financial KPIs with operational strategies—helping operators benchmark and optimize their performance.

5. Sustainability & ESG Expectations

Sustainability is no longer a side initiative, it’s central to long-term value creation. Consumer loyalty, investor interest, and brand reputation are increasingly tied to ESG performance.

Core ESG Themes in Restaurants:

• Reduced food waste via AI-powered inventory tools
• Compostable and reusable packaging
• Electrification of delivery vehicles
• Transparent sourcing and fair labor practices

Menu Trends:

• Emphasis on plant-forward items and functional beverages
• Ingredient traceability and clean-label commitments
• Local and seasonal menu innovation

Pro Tip: Use sustainability reporting frameworks like GRI or SASB to communicate your ESG story to investors and guests alike.

6. Data-Driven Decision-Making at Every Level

Top-performing brands are prioritizing real-time insights over gut instinct. Integrated tech stacks now allow restaurants to combine POS, inventory, payroll, and guest feedback into actionable dashboards. This shift from reactive to predictive operations is empowering leaders to:

• Identify underperforming units faster
• Launch targeted promotions based on guest behavior
• Forecast labor and food cost trends with greater accuracy

Pro Tip: Build dashboards not just for executives, but for GMs, franchisees, and field operators—tailored by role and decision-making authority.

The Bottom Line

The restaurant and franchise industry is being reimagined in real-time. Those who lean into innovation, embrace transparency, and prioritize profitability across all levels of the organization will come out ahead of the competition.

Whether it’s navigating pricing technology, deploying automation, or developing a more collaborative franchise model, success in today’s market requires more than great food—it demands smart strategy and execution.

Partner with Aprio’s Restaurant, Franchise and Hospitality team to accelerate growth and future-proof your operations with industry-specific tax, accounting, and advisory services. Let’s cook up profits, one trend at a time. Schedule a consultation today.

Related Resources:

• Q1 2025 Is Ending—Now What? Key Considerations for Restaurant, Laundromat, & Hospitality Franchise Groups
• An Outsourced Accounting Partner Serves Up Success for Multi-Unit Restaurant and Franchise Operators
• New Year Growth Blueprint for Franchise Industry Leaders
• Effective Cash Flow Management for Restaurants
• Risk Bites: 2025 Restaurant, Franchise, & Hospitality Survival Guide