Restaurant Franchise Operators Expect Traffic Decline in 2025 Says Citizens Bank

April 28, 2025

Bob Coleman
Founder & Publisher

Restaurant Franchise Operators Expect Traffic Decline in 2025 Says Citizens Bank

The Citizens Bank April 2025 Restaurant Industry Insights reported on an event sponsored by the bank for multi-unit franchise owners.

A survey completed by leading multi-unit franchise operators in attendance yielded insightful feedback. Results revealed that 89% of operators raised menu prices by more than 1.5% in 2024, with 11% of respondents raising prices by more than 8%.

Only 7% reported traffic increases exceeding 1.5% in 2024, while a majority projected a continued decline in traffic in 2025.

Sustaining traffic remains a top priority for restaurant operators in 2025, as they navigate a delicate balance between pricing increases to offset rising costs and guest retention.

Labor costs, food costs, utility costs, and rent costs were ranked next as sources of financial stress.

Only 11% of respondents were very optimistic about the restaurant business, while one-third were neutral and 7% were extremely pessimistic.

The report concludes, “Despite the challenges facing the industry, the majority of respondents cited new unit development and M&A as top growth priorities, demonstrating the resilience and long-term attractiveness of the sector.”

*Results reflect a weighted average (with 1 being least stressful and 7 being the most stressful)