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Annual Square Research Indicates Year of Experimentation and Customer Focus for Restaurants to Combat Economic Headwinds

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Square's fifth annual Future of Commerce report reveals that businesses worldwide plan to increase investments in automation and loyalty programs in 2025 amid economic challenges. 71% of restaurant leaders will boost investment in loyalty programs, with 83% reporting these programs successfully increase order size and 82% noting improved repeat visits.

Despite 63% of consumers cutting back on restaurant spending and 71% of restaurants planning price increases, 78% of restaurant leaders are more optimistic than last year. 65% plan to expand locations, and 74% will expand menu offerings. 85% of restaurant leaders plan to invest in technology, including AI and automation, particularly for marketing (77%), inventory management (77%), payments (76%), and menu optimization (76%).

In retail, 78% of leaders emphasize in-store experiences for growth, with 68% planning to invest in online stores. Beauty businesses are leveraging technology for personalized experiences, with 55% of consumers following their specialists' recommendations.

Il quinto rapporto annuale di Square sul futuro del commercio rivela che le aziende di tutto il mondo prevedono di aumentare gli investimenti in automazione e programmi di fidelizzazione nel 2025 di fronte a sfide economiche. Il 71% dei leader del settore ristorativo aumenterà gli investimenti nei programmi di fidelizzazione, con l'83% che segnala che questi programmi aumentano con successo la dimensione degli ordini e l'82% nota un miglioramento nelle visite ripetute.

Nonostante il 63% dei consumatori riduca la spesa nei ristoranti e il 71% dei ristoranti preveda aumenti di prezzo, il 78% dei leader del settore ristorativo è più ottimista rispetto all'anno scorso. Il 65% prevede di espandere le sedi e il 74% amplierà l'offerta del menu. Il 85% dei leader del settore ristorativo prevede di investire in tecnologia, inclusi AI e automazione, in particolare per il marketing (77%), la gestione dell'inventario (77%), i pagamenti (76%) e l'ottimizzazione del menu (76%).

Nel settore retail, il 78% dei leader enfatizza le esperienze in-store per la crescita, con il 68% che prevede di investire nei negozi online. Le attività nel settore della bellezza stanno sfruttando la tecnologia per esperienze personalizzate, con il 55% dei consumatori che segue le raccomandazioni dei propri specialisti.

El quinto informe anual de Square sobre el futuro del comercio revela que las empresas de todo el mundo planean aumentar las inversiones en automatización y programas de lealtad en 2025 ante desafíos económicos. El 71% de los líderes de restaurantes aumentará la inversión en programas de lealtad, con un 83% informando que estos programas aumentan con éxito el tamaño de los pedidos y un 82% señalando una mejora en las visitas recurrentes.

A pesar de que el 63% de los consumidores reduce el gasto en restaurantes y el 71% de los restaurantes planea aumentos de precios, el 78% de los líderes de restaurantes es más optimista que el año pasado. El 65% planea expandir ubicaciones y el 74% ampliará la oferta del menú. El 85% de los líderes de restaurantes planea invertir en tecnología, incluyendo IA y automatización, especialmente para marketing (77%), gestión de inventario (77%), pagos (76%) y optimización de menú (76%).

En el comercio minorista, el 78% de los líderes enfatiza las experiencias en la tienda para el crecimiento, con un 68% planeando invertir en tiendas en línea. Las empresas de belleza están aprovechando la tecnología para experiencias personalizadas, con un 55% de los consumidores siguiendo las recomendaciones de sus especialistas.

스퀘어의 다섯 번째 연례 상업의 미래 보고서는 전 세계 기업들이 경제적 도전에 직면하여 2025년에 자동화 및 로열티 프로그램에 대한 투자를 증가시킬 계획이라고 밝힙니다. 71%의 레스토랑 리더들이 로열티 프로그램에 대한 투자를 증가시킬 것이며, 83%는 이러한 프로그램이 성공적으로 주문 규모를 증가시키고 82%는 재방문이 개선되었다고 보고하고 있습니다.

소비자의 63%가 레스토랑 지출을 줄이고 있고 71%의 레스토랑이 가격 인상을 계획하고 있음에도 불구하고, 78%의 레스토랑 리더들은 작년보다 더 긍정적인 태도를 보이고 있습니다. 65%는 매장을 확장할 계획이며, 74%는 메뉴 제공을 늘릴 것입니다. 85%의 레스토랑 리더들이 마케팅(77%), 재고 관리(77%), 결제(76%), 메뉴 최적화(76%) 등 기술, 특히 AI 및 자동화에 투자할 계획입니다.

소매업에서 78%의 리더들이 성장을 위해 매장 내 경험을 강조하고 있으며, 68%는 온라인 상점에 투자할 계획입니다. 뷰티 업계는 개인화된 경험을 위해 기술을 활용하고 있으며, 55%의 소비자가 전문가의 추천을 따르고 있습니다.

Le cinquième rapport annuel de Square sur l'avenir du commerce révèle que les entreprises du monde entier prévoient d'augmenter leurs investissements dans l'automatisation et les programmes de fidélité en 2025 face à des défis économiques. 71% des leaders de restaurants vont accroître leur investissement dans les programmes de fidélité, avec 83% rapportant que ces programmes augmentent avec succès la taille des commandes et 82% constatant une amélioration des visites répétées.

Bien que 63% des consommateurs réduisent leurs dépenses dans les restaurants et que 71% des restaurants prévoient des augmentations de prix, 78% des leaders de restaurants sont plus optimistes que l'année dernière. 65% prévoient d'ouvrir de nouveaux établissements, et 74% vont élargir leur offre de menu. 85% des leaders de restaurants prévoient d'investir dans la technologie, y compris l'intelligence artificielle et l'automatisation, en particulier pour le marketing (77%), la gestion des stocks (77%), les paiements (76%) et l'optimisation des menus (76%).

Dans le commerce de détail, 78% des leaders soulignent l'importance des expériences en magasin pour la croissance, avec 68% prévoyant d'investir dans des boutiques en ligne. Les entreprises de beauté tirent parti de la technologie pour des expériences personnalisées, avec 55% des consommateurs suivant les recommandations de leurs spécialistes.

Der fünfte jährliche Zukunftsbericht von Square über den Handel zeigt, dass Unternehmen weltweit planen, 2025 trotz wirtschaftlicher Herausforderungen verstärkt in Automatisierung und Treueprogramme zu investieren. 71% der Restaurantleiter werden die Investitionen in Treueprogramme erhöhen, wobei 83% berichten, dass diese Programme die Bestellgröße erfolgreich erhöhen und 82% eine Verbesserung bei den wiederholten Besuchen feststellen.

Trotz dass 63% der Verbraucher ihre Ausgaben für Restaurants reduzieren und 71% der Restaurants Preiserhöhungen planen, sind 78% der Restaurantleiter optimistischer als im letzten Jahr. 65% planen eine Expansion der Standorte und 74% werden ihr Menüangebot erweitern. 85% der Restaurantleiter planen Investitionen in Technologie, einschließlich KI und Automatisierung, insbesondere für Marketing (77%), Bestandsmanagement (77%), Zahlungen (76%) und Menüoptimierung (76%).

Im Einzelhandel betonen 78% der Leiter die Bedeutung von In-Store-Erlebnissen für das Wachstum, wobei 68% planen, in Online-Shops zu investieren. Unternehmen im Bereich Schönheit nutzen Technologie für personalisierte Erfahrungen, wobei 55% der Verbraucher den Empfehlungen ihrer Spezialisten folgen.

Positive
  • 83% of restaurants report loyalty programs increase order size
  • 78% of restaurant leaders more optimistic than previous year
  • 65% of restaurants plan location expansion in 2025
  • 85% of restaurant leaders investing in technology and AI solutions
  • 68% of retailers planning online store investments
Negative
  • 63% of consumers reducing restaurant spending
  • 71% of restaurants planning price increases
  • 75% of restaurant leaders spending more time on operations due to rising costs

Square’s fifth annual report finds that global consumer businesses, including beauty and retail, plan to invest in new automation and loyalty programs in 2025

OAKLAND, Calif.--(BUSINESS WIRE)-- Square, the technology company that makes commerce and financial services easy and accessible, today released early insights from its forthcoming annual Future of Commerce report, providing a unique look at the restaurant, retail, and beauty industries across the US, Canada, UK, and Australia.

Square’s fifth annual report finds that global consumer businesses, including restaurants, beauty, and retail, plan to invest in new automation and loyalty programs in 2025 (Photo: Square)

Square’s fifth annual report finds that global consumer businesses, including restaurants, beauty, and retail, plan to invest in new automation and loyalty programs in 2025 (Photo: Square)

The research found that businesses worldwide – particularly restaurants – intend to experiment more in 2025, especially with customer retention programs like loyalty, as they face the triple challenge of sustained high inflation, shrinking consumer wallets and the need to raise prices across the board. These experiments, largely rooted in technology solutions, will be focused on increasing their efficiency while also deepening their customer relationships.

Square seller Gioia’s Deli in St. Louis, MO, for example, has been able to lean into enhancing their hospitality by paying attention to real-time and technology-enabled sales data. Alex Donley, Gioia’s co-owner, said, “Now, instead of having a meeting about our gross sales, we’re getting more granular with these reports. We know that last February we sold this amount of hot salami, and this February we sold this amount. What’s the difference? What did we do wrong? Or what did we do right? It makes us a more efficient business, which ultimately makes the customer experience better.”

Connecting with the consumer through loyalty programs and better customer data is a key focus for operators – more than seven in ten restaurant leaders (71%) are planning to increase investment in their loyalty or reward programs to keep customers close over the next 12 months. This reflects the positive impact loyalty programs have on driving revenue, with 83% of restaurant leaders saying their loyalty program successfully drives up order or basket size, as well as repeat visits (82%) and return on investment (78%). Consumers are happy to be part of the in-crowd at their favorite restaurants – 69% find loyalty programs to be valuable, and they’re reaping the benefits with 43% of businesses having implemented exclusive discounts for their members.

These developments are more important than ever as businesses are fighting for a share of consumers’ wallets – most consumers (63%) said they’re cutting back on restaurant spending. As they grapple with rising costs across their supply chain, 71% of restaurants plan to increase prices this year. Yet despite these challenges, businesses are feeling positive, with 78% of restaurant leaders saying they’re more optimistic about their business than a year ago. Nearly two-thirds (65%) say they plan to increase their number of locations in 2025, and 74% plan to expand their menu offerings, leaning into new experiences and experimentation to power their growth.

As businesses seek routes to greater efficiency while still maintaining hospitality, Square’s research shows that 85% of restaurant leaders plan to invest in technology, such as new AI and automation tools, to help improve their companies this year. Three-quarters of them (75%) are spending more time on business operations compared to a year ago as costs rise and industry challenges continue. Two-thirds of restaurant leaders believe AI or automation will improve their business in each of the 15 areas we asked about, the most popular of which are marketing and promotions (77%), inventory management (77%), payments (76%), menu optimization (76%), and staff management (75%).

“In 2025, restaurants are walking the fine line between automation and hospitality,” said Ming-Tai Huh, Head of Food & Beverage at Square. “As businesses continue to face economic pressures, we’re seeing them invest in growth and experimentation as they find new, streamlined ways to work and deliver exceptional customer service – particularly through using time-saving and experience-enhancing technology.”

In addition to its data on restaurant businesses, Square’s Future of Commerce report also looked at the beauty and retail sectors:

  • Beauty businesses are relying on technology to save time, better focus on customers and improve the one-to-one service they provide.
    • Customers appreciate and expect personalized experiences from the beauty salons and spas they patronize. More than half (55%) of consumers said they purchase products or adopt practices their beauty specialist recommends, showing how beauty businesses can expand revenues beyond their core service offerings.
  • Retailers’ priority for the year ahead is to better meld the physical and digital together, at a time when consumers increasingly crave in-store experiences powered by seamless technology.
    • 78% of retail leaders believe in-store experiences like product demos or classes are critical for business growth, and about a third (35%) think they should offer more in-store events to keep up with the competition. One sign of retailers’ growth plans for 2025 is that 68% of them say they will invest in an online store over the next 12 months.

The full analysis of the top restaurant, beauty, and retail trends for 2025, industry data and insights from Square experts, and real-life examples from Square sellers will be available in the forthcoming report published on February 4th 2025. For access, visit the Square website or reach out to press@squareup.com.

About Future of Commerce

The Square Future of Commerce survey was conducted by Bredin. The survey included both business owners and consumers. We surveyed 6,000 owners and managers of businesses in three industries: Beauty, Retail, and Restaurant. The businesses were located in the U.S., Canada, U.K., and Australia, with 500 respondents per industry per country. The business owner survey was conducted online and fielded via a third-party panel provider between September 18 and October 8, 2024. We also surveyed 4,000 consumers: 1,000 each in the U.S., Canada, U.K., and Australia. The consumer survey was conducted online and fielded via a third-party panel provider between September 20 and October 4, 2024. All respondents had to be 18 years old or older, and companies had to have at least one employee and have revenue above $20,000 or the equivalent in their local currencies.

About Square

Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. For more information, visit www.squareup.com.

press@squareup.com

Source: Square

FAQ

What percentage of restaurants plan to increase prices in 2025 according to Square's report?

According to Square's report, 71% of restaurants plan to increase their prices in 2025 due to rising costs across their supply chain.

How many restaurant leaders are planning to invest in loyalty programs in 2025?

71% of restaurant leaders plan to increase investment in their loyalty or reward programs over the next 12 months.

What percentage of restaurants are planning to expand locations in 2025?

65% of restaurants plan to increase their number of locations in 2025.

How many restaurant leaders plan to invest in AI and automation technology in 2025?

85% of restaurant leaders plan to invest in technology, such as new AI and automation tools, to help improve their businesses in 2025.

What percentage of consumers are reducing restaurant spending according to Square's report?

63% of consumers reported they are cutting back on restaurant spending.

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