Leaders are already identifying key trends and strategies that signal brighter opportunities ahead. For suppliers, the path forward in 2025 hinges on data-driven decisions. Additionally, brands need to hyper-focus on customer-centric innovation and collaborative partnerships.

That’s according to a couple of restaurant supplier experts we spoke to recently: Mike Halen, Senior Restaurant Analyst at Bloomberg Intelligence, and George Kalamaras, Sr. Market Research & Insights Manager at Libbey Glassware.

Looking to optimize operations or better serve your restaurant partners?

Let’s break down their strategic insights for restaurant suppliers.

Key Metrics for Suppliers

Kalamaras highlighted the critical metrics brands should monitor to navigate this challenging landscape:

1.  Traffic
   Why: A key driver for tabletop product sales, especially in replenishment orders.
2. Restaurant Openings
   Why: It’s true that new restaurants contribute a smaller share of overall sales. However, the orders are significantly larger in terms of dollar and unit amounts.
3. Consumer and Operator Sentiment
   Why: Understanding the mood and behavior of stakeholders helps anticipate market shifts.
4. Off-Premise Dining Trends
   Why: After the surge during the pandemic, off-premise dining became a norm. And this remains strong at 20-25% of total business for many chains.

These strategic insights for restaurant suppliers emphasize one thing…

Brands need to stay updated with trends and market behaviors.

Winning Strategies from Top Suppliers

Leading suppliers like U.S. Foods and Sysco have differentiated themselves. But how?

Halen outlined how innovation is impacting restaurants and suppliers to become more efficient:

• Private Label Innovation:

  • Offering high-quality, value-added products. This helps with things like reducing kitchen labor or aligning with food trends.

• Sustainability Efforts:

  • Integrating Eco-friendly practices that appeal to modern consumers and improve supplier margins.

• Technology Adoption:

  • Streamlining operations and providing added value to customers is vital for 2025. So, leveraging AI-driven promotions, e-commerce platforms, and real-time inventory management is game-changing.

These innovative strategies are helping restaurants and suppliers build stronger symbiotic partnerships.

Conclusion

The restaurant industry and its suppliers have faced a turbulent 2024.

However, the lessons learned provide a roadmap for navigating the future.

For suppliers, the path forward is clear.

Brands embracing data, customer-centric strategies, and trends will succeed in 2025