The new year is upon us and change is in the air. Business optimism is returning, and the restaurant industry is riding the wave of entrepreneurship. The restaurant industry has long been a cornerstone of entrepreneurship, attracting those looking to blend a love of food, wine and all things social with business acumen.

The latest survey from the National Federation of Independent Business (NFIB), a key indicator of business owner confidence across the country, reveals that small business optimism surged in November, exceeding the 50-year average. This heightened optimism on multiple points show why those waiting on the sidelines should be ready to take the leap and buy a restaurant in 2025.

Since the fourth quarter of 1973, the NFIB Research Center has been gathering Small Business Economic Trends data through quarterly surveys, expanding to monthly surveys in 1986. Survey participants are randomly selected from NFIB’s membership, and the findings are published on the second Tuesday of each month. The most recent survey was conducted in November 2024. Here’s every point in their survey reinforcing the reasons for buying a restaurant in 2025.

Reasons to Buy a Restaurant in 2025

Improving economic outlook: With the highest percentage of owners expecting the economy to improve since June 2020, the overall economic environment in 2025 is more favorable for the restaurant industry. A stronger economy generally leads to increased consumer spending and dining out. The net percent of owners expecting the economy to improve rose 41 points from October to a net 36%, the highest since June 2020.

Expansion opportunities: As the net percent of small business owners believing it's a good time to expand reaches the highest level since June 2021, restaurant owners are eying 2025 as the right time to grow their businesses. Expansion could include opening new locations or expanding their current establishments. The net percent of small business owners believing it is a good time to expand their business rose eight points to a net 14%. This is the highest reading since June 2021.

Higher sales expectations: Restaurant owners are expecting higher real sales volumes in 2025 which, in general delivers more profit to the bottom line with costs remaining in line. Buyers are constantly vying for the most profitable opportunities, and this affects everything from valuation to lending for the store. The net percent of owners expecting higher real sales volumes rose 18 points to a net 14% (seasonally adjusted), the highest reading since February 2020."

Favorable financing conditions: The cost of capital is critical to the restaurant industry and finally, operators are reporting a low percentage facing higher rates on their most recent loans. This absolutely feeds the buying side of the equation as the cost of capital influences how much free cash flow is available after servicing debt. Lower interest rates make purchasing a restaurant more affordable and attractive. A net 5% of owners reported paying a higher rate on their most recent loan, unchanged from October's lowest reading since January 2022. This data was prior to the Federal Reserve’s most recent rate cut on December 10^th, which reduced the prime rate by another 25 basis points.

Increased capital investments: The highest reading of planned capital outlays since January 2022 suggests restaurant owners are ready to invest in their businesses again. This leads to improved facilities, equipment, and overall customer experience and makes restaurants more appealing to potential buyers and customers alike. Twenty-eight percent (seasonally adjusted) plan capital outlays in the next six months, up six points from October. This is the highest reading since January 2022. Reinvestment by restaurant owners can also include the acquisition of additional units.

Improving profit trends: With the highest reading of positive profit trends in 2025, the restaurant industry is poised to be more lucrative for owners and attractive to potential buyers. Improved profitability provides restaurant owners with more resources to reinvest in their businesses. The frequency of reports of positive profit trends was up seven points from October and the highest reading of this year.

Reduced concerns over inflation: As inflation becomes less of a concern for restaurant owners in 2025, they can finally focus on growth and profitability rather than managing rising costs. This leads to a more stable and attractive market for buyers and sellers. Twenty percent of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), down three points from October and surpassing labor quality as the top issue by one point.

Stocks market poised for growth: As companies anticipate stronger earnings, the stock market is looking favorable in the short term. A higher market leads to greater net worth for individuals looking to invest personal funds and a higher confidence level to invest with a higher net worth.

Potential for staffing improvements: While job openings remain a challenge, the restaurant industry may see improvements in labor quality and availability by 2025. This could lead to better-staffed restaurants, improved customer service, and increased operational efficiency, making restaurants more appealing to buyers and customers. There remain challenges with labor in the industry with thirty-six percent of all owners reportin job openings they could not fill in the current period, up one point from October.

The Resilient Nature of the Restaurant Industry

The restaurant industry’s resilience is a testament to its enduring appeal. That’s another reason those seeking opportunity should consider restaurants as an acquisition strategy in 2025. Even during challenging times, restaurants have demonstrated an incredible capacity for recovery. During the COVID-19 pandemic, many businesses pivoted to delivery and takeout models, preserving their revenue streams.

In 2025, this business approach translates into opportunities for buyers. From fast-casual chains to fine dining establishments, restaurants continue to innovate and attract loyal customer bases. The growing demand for unique dining experiences ensures that new entrants to the market will have the chance to succeed.

Market Opportunities

One of the most compelling reasons to buy a restaurant in 2025 is the sheer number, range, and quality of restaurant for sale listings available. We Sell Restaurants has more than 1,000 restaurants available ranging from franchise to independent, profitable to turnaround opportunities. Those on the sideline for selling based on the market conditions in the past two years will be motivated to offer more opportunities in 2025, leading to some of the best locations coming to market we have seen in years.

Underserved markets also present significant growth potential. Communities with limited dining options are ripe for investment, particularly as more consumers prioritize convenience and locally sourced ingredients. Identifying these gaps can lead to highly lucrative ventures.

Benefits of Owning a Restaurant

Owning a restaurant offers both tangible and intangible benefits. Financially, successful restaurants provide a steady income stream and significant wealth-building opportunities. For many owners, the ability to create jobs and contribute to their communities adds a sense of purpose to their entrepreneurial journey. Quoting from our book, Appetite for Acquisition, “Restaurants are the fabric of our culture.” We go on to say, “In a high tech world, it’s a high touch environment where we still interact with one another.” Restaurant ownership allows individuals to express creativity, through menu design, concept, and offerings. For those passionate about food and hospitality, owning a restaurant is more than a business—it’s a calling.

Challenges and How to Overcome Them

While the restaurant industry offers numerous rewards, it’s not without its challenges. Labor shortages and supply chain disruptions remain some of the concerns for 2025. The industry has proven resilient however in creating innovative solutions to overcome these issues ranging from technology to human resources.

Understanding the operational complexities of a restaurant is a challenge. Buyers should familiarize themselves with prime costs like food cost percentages, labor costs, and occupancy. Partnering with experienced brokers and reading in-depth articles like this one provides valuable insights and guidance.

Strategies for Success

To succeed in your search in 2025, begin with the right opportunity. Buyers should review multiple options, visit as a mystery shopper and then make a determination about the business. One you are in contract, conduct thorough due diligence, evaluating all the information you are provided. Factor in outside elements like location and competition and look for ways to improve on the current performance. Consider adding brunch or improving your catering options. Working with a Certified Restaurant Broker can streamline this process, making sure you find a business that aligns with your goals.

As we enter 2025, the restaurant industry presents unmatched opportunities for entrepreneurs with a passion for food. From favorable economic conditions to lowered inflations and interest rates, there may never be a better time to enter the restaurant industry.

FAQs

1. What should I look for in a buying a restaurant?
   Evaluate location, financial performance, and growth potential.
2. How much capital do I need to purchase a restaurant?
   Costs vary but typically include the purchase price, initial working capital, and operational expenses.
3. Are franchise opportunities better than independent restaurants?
   It depends on your goals. Franchises offer support and brand recognition, while independents provide creative freedom.
4. How do economic factors affect restaurant ownership?
   Interest rates, consumer spending, and market conditions all influence sales which impacts profitability.
5. Where can I find guidance on buying a restaurant?
   Certified Restaurant Brokers, industry consultants, and SBA resources are excellent starting points.