Analysts forecast a slightly rosier year for restaurants, predicting that consumer demand will rise, bankruptcies will slow and increased valuations will yield more M&A activity.
* Both consumers and operators appear to be more positive about 2025’s prospects.
* Experts predict that there will be strong access to capital and investment from private equity as interest rates decline and macroeconomic conditions improve — a dynamic that could lead to more mergers and acquisitions.
* Experts said there will likely be more mergers and acquisitions and more available capital in 2025.
* Companies that have been sitting on the sidelines will put their capital to use, especially with interest rates falling
* Private equity firms and hedge funds may feel pressure to put their cash reserves to use, which could lead to more funding for restaurants
* Lenders also feel safer about lending to restaurants because some brands have been performing better lately
* All of a sudden people are willing to lend. 2025 is going to be an absolute land grab.
* Franchisee access to debt will allow them to finance growth with non-competing brands.
* There’s going to be lots of opportunity for M&A to pick up in 2025 and 2026
Consumer demand should pick up
* While many consumers balked at high restaurant prices this year, underlying consumer demand is still strong
* Consumers right now are spending like drunken sailors