In this Weekly Wrap, we’re looking at the restaurants Gen Z consumers talk about most on social media, U.S. tariffs on Mexico and Canada, AI technology in hospitality, and more.
AI and Restaurants
The Headline: “Market Research: One-Third of Restaurants Have Already Adopted AI Technology; 48% Plan To Do So This Year”
The Source: Restaurant Technology News
What You Need to Know:
After contending with another year of high food and labor costs, financially stressed consumers, and fierce competition, U.S. restaurant operators are approaching 2025 with a focus on engaging more guests, more often. Consumers will see new pricing, ordering and marketing strategies, unique dining experiences, and increased usage of AI to enhance hospitality and bridge labor gaps.
This is according to recent studies of 359 U.S. restaurant operators and 1,000 U.S. consumers by Popmenu, a tech leader serving more than 10,000 restaurants.
Following are some of the technology-related research findings highlighted in the Restaurant Trends to Watch in 2025 report:
- From taking orders and preparing food to business operations and marketing, one third of operators (34%) have adopted AI technology at their restaurants while 48% plan to in 2025.
-More than half (54%) of operators believe AI will become a staple in restaurants over the next three years; 20% believe it’s already a staple.
-59% of operators plan to automate more online functions while 43% plan to automate more on-premise functions.
-45% will automate more front-of-house functions while 28% will automate more back-of-house functions and 31% will automate more management tasks.
-To bring in a steady stream of new and repeat guests, 3 in 4 operators plan to increase marketing activities this year.
-The same number plan to build out robust digital profiles of what each guest likes so they can send out more tailored messages and offers.
Our Take:
We are still in the early stages of the AI revolution, with capabilities continuously evolving and new applications emerging. AI is playing an increasing role in hospitality, especially forecasting and operational efficiency. But while it can save time and streamline processes, customer service applications remain a work in progress. Cost is another hurdle for smaller operators.
AI has the potential to be transformative for the hospitality industry when implemented appropriately. But a balanced approach combining AI with human oversight is the most practical strategy for now.
AI in Forecasting
One of the most promising applications of AI in hospitality is forecasting. AI can analyze vast amounts of data — including past sales, seasonal trends, and local events — to predict future sales and demand. This helps businesses create more efficient annual forecasts and quarterly budgets.
But AI is not infallible. While it can predict how adverse weather might impact sales, it cannot forecast the exact timing or severity of unpredictable events — just as human forecasting cannot. That said, AI can significantly reduce the time required for forecasting, saving operators valuable man-hours.
AI in Customer-Facing Roles
AI is also being used in customer interactions, with platforms like Newo.ai, Slang.ai, RestoHost AI, Maitre D AI, Revmo AI, and PolyAI managing reservations and guest communication. While these tools offer automation, results are mixed. AI-driven customer service can sometimes misunderstand consumer intent, leading to frustrating experiences.
Certain applications, like reservation management, function well, but more nuanced customer interactions still require human oversight. As AI advances, these challenges may improve, but many operators remain cautious about fully replacing human interaction.
Cost Considerations
Cost is a key barrier to AI adoption in hospitality. Large chains can experiment with advanced AI systems, but smaller operators may struggle with the investment. As AI becomes more widespread, costs may decrease, making it more accessible.
Perkins Restaurant Rebrand
The Headline: “The Future of Perkins American Food Co. Is Here; Unveils Highly Anticipated Flagship Restaurant in Orlando”
The Source: Restaurant News
What You Need to Know:
Perkins American Food Co. is ushering in its evolution with the unveiling of its highly anticipated flagship restaurant in Orlando, FL on March 19. The location marks a milestone in the brand’s evolution. It reinvents family dining by showcasing a fresh, modern interpretation of the authentic American dining experience that Perkins has offered since 1958.
The flagship restaurant will showcase a new state-of-the-art design, designed by Aria Group, that combines contemporary aesthetics with the brand’s heritage. The venue spans 3,500 sq. ft. and offers a bright and inviting atmosphere, showcasing how modern American hospitality comes to life. With an exterior patio and chic design elements, this is the new face of Perkins.
“We have put a lot of heart into ensuring that our new location embodies everything that Perkins represents,” said Toni Ronayne, President of Perkins American Food Co. “While we honor our roots, we are redefining our brand to resonate with today’s dynamic diners. Our team has meticulously reimagined every detail — from menu innovation and interior design — to create a flagship location that serves as a blueprint for future growth and sets a new standard for modern American hospitality.
New ‘Tude, New Food
One of the most notable changes with the Flagship restaurant concept is the revamped menu. The Perkins culinary team, led by Vice President of Menu Innovation Mindy Armstrong, has crafted a menu that reflects the tastes of today’s guests. The offerings focus on American classics that guests know and love, while also modernizing these dishes to align with current cravings.
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Perkins is shaking things up with a brand-new innovative beverage menu! Enjoy bakery-inspired frozen drinks, boba chillers, craft refreshers, and signature cocktails. That’s right, we are introducing craft cocktails, like frozen margaritas, mojitos, and the decadent Irish coffee freeze, to pair with our selection of wine, beer, and mimosas.
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Perkins currently operates nearly 300 company-owned and franchise locations across the U.S. and Canada. Ascent Hospitality Management owns the company.
Our Take:
At first glance, this article reads like a PR firm’s attempt to make a corporate announcement feel more like a news story. But beneath the polish, there’s a critical takeaway: legacy brands are finally recognizing the need for change.
Over the past year, we’ve seen numerous legacy chains file for bankruptcy — Red Lobster, TGI Fridays, Rubio’s Coastal Grill, and Buca di Beppo, to name a few. The common thread among these struggling brands? A failure to adapt.
I recently stopped by a TGI Fridays and was struck by how little had changed. The decor, menu, and even drink offerings were nearly identical to when I bartended at TGI Fridays in Cerritos, Calif., back in 1998. That’s 27 years of stagnation in an industry where consumer expectations, dining trends, and competitive landscapes have evolved dramatically.
Of course, there are places where consistency is a virtue. Institutions like Peter Luger and McSorley’s in New York thrive on tradition and should never change. But for national franchises, clinging to branding and offerings that worked 40 or 50 years ago is a recipe for irrelevance.
Perkins’ new flagship in Orlando signals a push for reinvention, but the real test is whether it goes beyond surface-level updates like decor and trendy menu additions. Lasting success depends on meaningful improvements in operations, menu quality, and service that align with modern dining expectations.
It’s not just about change — it’s about the right changes, executed well. Is Perkins rethinking the guest experience, enhancing food quality, and leveraging technology without losing its identity? Without thoughtful evolution, they risk becoming just another nostalgia act — refreshed in appearance but still out of touch with today’s diners. Only time will tell.
Mexico and Canada Tariffs
The Headline: “Trump's tariffs on Canada, Mexico go into effect on Tuesday: Where to expect rising prices”
The Source: USA Today
What You Need to Know:
After weeks of promising to impose tariffs on its two neighbors, Mexico and Canada, President Donald Trump’s administration will impose tariffs on goods from these countries on Tuesday morning, just after midnight.
"They're going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs," Trump said at the White House on Monday.
Tariffs imposed on goods from Mexico and Canada are expected to increase the prices of goods used by Americans every day. From gas to alcohol to meat and more, economists expect Americans to pay higher prices.
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The price hikes are expected to impact outside of the grocery store. According to the Peterson Institute for International Economics, the tariffs could cost the average United States household $1,200 annually.
“Domestic producers that compete with the newly tariffed imports will increase their prices in line with import price increases,” the institute said.
On the other hand, the Tax Policy Center said that after-tax income would fall by $930 on average next year. The center said that the lowest-income 20% of households would lower after-tax income by $170 while wealthier households could see an average of $3,280 less in a year.
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Now, Trump is set to increase prices even further with the tariffs implemented on Tuesday. Canada and Mexico are the United States’ largest trading partners; a significant amount of meat, grains, and vegetables are imported from these countries.
According to the Canadian government, about 34% of all meat imported into the U.S. comes from the country. On the other hand, according to the USDA, Mexico is a major provider of fresh vegetables to the U.S., as 77% of our fresh produce comes from the South.
Mexico and Canada rank within the top four providers of alcohol for Americans. Mexico, in fact, is the largest importer of beer into the United States, as 18% of all beer drank in America comes from Mexico, the U.S. Beer Institute said.
Our Take:
This news item, published on March 3, was already outdated by March 6, when Trump paused tariffs on Mexican and Canadian goods again until April. But the takeaway here — and the impact to both operators and consumers — remains, and will continue to be top of mind as this trade war continues to unfold.
A couple of weeks ago, we were talking about soaring egg prices and how they were impacting the industry — completely unrelated to tariffs. And while we’ve all been bracing for these tariffs to hit, that doesn’t make it any easier to swallow. And it’s definitely going to sting.
Let’s break it down:
The #1 selling beer in America? Modelo Especial.
The fastest-growing spirit category — on track to surpass vodka as the most popular in the U.S.? Tequila.
One of the most beloved restaurant styles in America? Mexican — over 80,000 locations nationwide.
And according to a 2023 USDA report, 60 percent of our fresh fruit and 38 percent of our fresh vegetables are imported, most of them from Mexico. This will hit everywhere.
And let’s not forget Canada. The U.S. imports a substantial amount of agricultural and beverage products from our northern neighbor, and while the impact there will be real, the immediate and noticeable pain will come from tariffs on Mexican goods. Consumers will feel it — and more importantly, they’ll know it. No one is going to blame the cost of their avocados on tariffs on Canada.
Prices will rise at the grocery store, and they will rise at restaurants. The larger chains have the buying power to absorb some of the impact, but independent restaurants and smaller groups (especially those with fewer than 10 locations) will be forced to raise prices.
And here’s the reality: if you’ve dined out recently, especially in a major city, you know it’s already expensive. Consumer spending has been shaky since the start of the year, and this added pressure will only make things worse. Higher prices, coupled with already dampened consumer confidence, will inevitably lead to fewer diners.
But not everyone will struggle. The big players — those who can leverage massive purchasing power — will likely thrive. Chains like Chili’s and Texas Roadhouse, with their scale and resilience, may even find ways to turn this to their advantage. Their margins may tighten, but their volume will keep them in the game.
For independent operators? It’s going to be a fight.
Gen Z Restaurant Preferences
The Headline: “Here are the restaurant brands Gen Z consumers are talking about the most”
The Source: Nations Restaurant News
What You Need to Know:
Research and strategy firm dcdx released its Magnetic 100 Restaurants Report today, highlighting which brands are resonating the most with Gen Z consumers based on their organic conversations online.
The firm typically does a report focused on the top 25 brands across sectors but expanded the list to 100 for the first time because there was high interest in the restaurant industry’s hyper-competitiveness, according to chief executive officer and founder Andrew Roth. The idea is to measure digital word-of-mouth conversations to understand the relevance of a brand for the Gen Z demographic (ages 12 to 27), which is expected to wield $12 trillion in spending power by 2030, according to Nielsen, likely making it the wealthiest generation ever.
“Magnetism can be measured through how much and how often consumers talk about a brand online and this is all organic, so it’s not skewed by big marketing or influencer budgets,” dcdx director of strategy Mara Stolzenbach said during a recent interview. “Analyzing this type of user-generated content allows us to understand what is resonating with customers and how they think about a brand.”
Brands that attract younger consumers organically command more pricing power in an increasingly crowded marketplace, Roth added.
“These brands tend to consistently drive higher shareholder value,” he said.
Of the 100 restaurant brands analyzed, the public chains that increased their Brand Magnetism over the past year outperformed the stock market index S&P 500 by more than 41%, while the public brands that lost Brand Magnetism in that same timeframe underperformed the S&P 500 by 26%. Further, the top six restaurant brands drove more than 50% of the engagement for the overall category in Q1 2025, with the top 14 brands driving more than 75% of the category's conversations.
“It is clear that restaurants are not just competing for dining dollars – they are competing for mindshare in an ongoing and crowded online conversation,” Roth said.
Rankings
The full report breaks down all 100 brands from “Weak” to “Magnetic,” through three separate analyses: brand momentum, TikTok follower count, and segment (quick-service, fast casual, and casual). Metrics are then derived from popularity (the average weekly engagement of user-generated content over time), and consistency (the variation in average weekly engagement of UGC over time).
The consistency of average weekly engagement is measured for each individual brand and is weighted and added to the popularity sub-score to form the overall Brand Magnetism score, from 0 to 100. For this report, 139 total restaurant brands were analyzed based on 7.78 billion total engagements.
The top 5 “most magnetic” brands based on dcdx’s methodology include:
McDonald’s, 89.38. The Golden Arches are unique in that most of the chain’s engagement is defined by things other than its food — 55% of all engagement with McDonald's UGC in Q1 reflected its position in culture. Content ranged from viral clarinet performances mimicking air fryer sounds to AI-generated Shrek invasions, and relatable memes about drive-thru order mishaps. Employee-generated content and behind-the-scenes-style content contributed another 21% of engagement.
Wingstop, 87.50. Unlike McDonald’s, most of Wingstop’s UGC (75.9%), comes from consumers highlighting their orders and Mukbang videos (in which social media users show themselves eating menu items).
Starbucks, 87.13. Nearly 30% of the coffee chain’s content highlights day-to-day employee experiences. Consumers also share seasonal drink ordering tips and their personalized cup messages.
Chipotle, 86.84. What began as criticism over portion sizes and pricing in early 2024 ironically became Chipotle’s biggest content driver, as fans found creative ways to maximize their orders and get the best bang for their buck.
Taco Bell, 86.05. Taco Bell's UGC in Q1 is embedded in the personal narratives of its customers, as 43% of all engagements feature storyteller content, from trekking through blizzards to creative drive-thru pranks on unsuspecting parents to gender reveals featuring Baja Blast.
Our Take:
You may not necessarily care about the restaurant brands Gen Z talks about most online, but the takeaway here is the importance of consumer-generated content, which can influence a business's public perception and success. Yes, this report focuses predominantly on major chains, but there are still some valuable insights for operators across the spectrum.
A good example is Chipotle's experience with social media backlash concerning portion sizes. In mid-2024, customers took to TikTok and Reddit to voice concerns about smaller portions at Chipotle outlets. This led to widespread discussions and negative publicity for the brand. In response, Chipotle's CEO addressed these concerns, saying that there was no directive to reduce portion sizes and emphasizing the company's commitment to generous servings. The company also initiated staff retraining at select locations to ensure consistency and portion sizes, even though these measures impacted profitability.
For restaurant operators, it's important to monitor what consumers are posting about their business. Whether it’s reviews from influencers like Keith Lee or discussions about portion sizes, this content can provide actionable feedback. (For instance, a viral Instagram Reel featuring a unique dish can boost interest and foot traffic.) And while it’s definitely a good idea to pay attention to the conversation about your business, to know what you’re doing right and what you could be doing better, acting on it should be done with care. It might yield short-term gains and give you an edge in a competitive market, but basing an entire business model on fleeting social media trends may not be sustainable in the long run.