Square Data Shows How 2025’s Economic Volatility Is Impacting the Restaurant Industry

Square's latest data shows that tipping in the restaurant industry is on the decline, with the average tip on food and beverage transactions dropping as consumer confidence in the economy wanes. Quick-service restaurants are maintaining the strongest margins, while bars continue to receive the highest tips. Oat milk has become a popular choice for coffee orders in coastal states, although dairy still reigns supreme in middle America and the South.

When it comes to profitability, quick-service restaurants and fast casual concepts outperform fine dining establishments in terms of consistency, efficiency, and scalability. Online ordering and delivery have become essential for restaurants, but these sales channels can cut into margins. Square offers solutions to help restaurants navigate these challenges, such as first-party online ordering options and Instant Payouts for earnings from third-party delivery platforms. Overall, Square provides integrated commerce solutions to help restaurants thrive in the ever-changing economic landscape of 2025.