In an uncertain environment for the U.S. restaurant industry, rising sales among food distributors and restaurant chains’ plans for expansion represent a few positive signs for foodservice growth to start 2025.
Houston, Texas, U.S.A.-based food distribution firm Sysco recently reported an increase in global sales to USD 20.2 billion (EUR 19 billion) in its second fiscal quarter of 2025, a 4.5 percent increase compared to the same period of 2024, while gross profit increased 3.9 percent to USD 3.7 billion (EUR 3.5 billion).
In the firm’s financial report for the period, Sysco Chairman of the Board and CEO Kevin Hourican noted that the distributor’s international business was particularly strong, delivering a 14.5 percent increase in operating income and a 26.5 percent increase in adjusted operating income year over year.
Similarly, sales for its U.S. foodservice operation rose 4.1 percent to USD 14 billion (EUR 13 billion), while gross profit inclined 2.9 percent to USD 2.7 billion (EUR 2.6 billion).
“Our efforts generated positive operating leverage and sequential improvements to gross profits. We are encouraged by the momentum in our business and are reiterating our full-year guidance, including sales growth of 4 percent to 5 percent and adjusted earnings per share growth of 6 percent to 7 percent,” Sysco Chief Financial Officer Kenny Cheung said.
Coming off a tough 2024, the U.S. restaurant industry, like food distribution, is also showing some signs of growth.
While seafood penetration on U.S. restaurant menus declined in 2024, seafood consumption is growing, and there are still plenty of opportunities to target consumers with innovative seafood dishes, Datassential Vice President of Customer Experience Kelley Fechner said at the 2025 Global Seafood Market Conference (GSMC) in Palm Desert, California, U.S.A., on 23 January.
A Datassential survey for 2025 presented by Fechner found that 22 percent of consumers aim to increase their seafood consumption this year, while 66 percent of consumers aim to maintain the same seafood consumption levels. As a result, 88 percent of consumers aim to either maintain their seafood consumption or increase it.
Additionally, consumers are spending more money on food away from home than on groceries to eat at home, Wells Fargo agricultural economist Michael Swanson told GSMC attendees.
Although individual consumers may be hurting financially, the market as a whole is not, he explained.
“They have the money, they have the jobs, and they will spend it if they find value. The consumer doesn’t like inflation, but it sure doesn’t stop them from spending their money,” Swanson said. “The consumer has record amounts of income, [and] record amounts of spending is going on.”
Some of that spending is going toward restaurants; similar to Sysco, Orlando, Florida, U.S.A.-based restaurant operator Darden Restaurants’ earnings continue to increase quarter over quarter.
The operator of such restaurant chains as Ruth’s Chris, LongHorn Steakhouse, and Olive Garden recently reported a 6 percent year-over-year hike in total sales for its fiscal second quarter of 2025.
In addition to a blended same-restaurant sales increase of 2.4 percent in the quarter, Darden attributed the sales hike to adding 39 net new restaurants to its portfolio, along with the addition of 103 Chuy’s restaurants it acquired for USD 605 million (EUR 581 million) in late 2024.
"We had a strong quarter, and I am pleased that our four largest brands – Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar's Scratch Kitchen – generated positive same-restaurant sales, as did three of our four business segments," Darden President and CEO Rick Cardenas said.
Other U.S. restaurant chains are aiming for expansion this year, as well.
Scottsdale, Arizona, U.S.A.-based P.F. Chang’s, which operates 300 restaurants, is testing a fast-casual concept called Pagoda Asian Grill, and an executive said the concept could eventually have 2,000 locations one day, per Nation’s Restaurant News.
Elsewhere, after opening nine restaurants in the U.S. and Mexico and signing franchise agreements for 24 new restaurants in 2024, Dallas, Texas, U.S.A.-based Twin Peaks plans to open 10 new locations in 2025 after launching a new menu in 2024.
UDON, which claims to be Spain’s leading chain of Asian restaurants, is continuing to expand in the U.S., with the recent opening of a restaurant in Aventura, Florida, U.S.A. It will open a third U.S. location in Dadeland, Florida, in 2025.
