Weekly Wrap May 19: Restaurants Moving to OpenTable, Hospitality Burnout, and More
The most important hospitality industry news right now
Dave Foss
May 19, 2025
In this Weekly Wrap, we’re looking at OpenTable’s recent spending spree to court more cool restaurants, CAVA’s fast-casual success, the latest DoorDash survey results, and more.
OpenTable’s Spending Spree
The Headline: “The Five-Figure Reason Hot Restaurants Are Moving to OpenTable”
The Source: NY Times
What You Need to Know:
Last year, OpenTable, home to more than 60,000 restaurant clients, signed a partnership with Visa that gives certain cardholders access to coveted reservation slots at popular restaurants. Six years ago, American Express purchased Resy — used by more than 20,000 restaurants — and added Tock to its portfolio last year. Since 2021, American Express has offered premium cardholders access to in-demand reservations on Resy.
As a result, some of the country’s best-known chefs have been placed squarely in the center of the credit card wars as restaurants become invaluable cultural currency for financial institutions chasing young, wealthy customers.
“They are obviously trying to build a roster of ‘All these are the cool restaurants, we want them with us,’ ” said Ms. Castro.
In interviews and messages, eight restaurateurs across the United States — who spoke on the condition of anonymity because they had signed nondisclosure agreements — said they had been offered cash deals from OpenTable that ranged from $40,000 to $95,000 to make the switch. (That’s a pittance compared with the $187 billion in swipe fees that American businesses pay credit card companies each year, according to the National Restaurant Association.)
…
These payments also come at a time when some restaurants are feeling frustrated with Resy: it glitches frequently, a few owners said, and the company has rested on its cool-kid laurels rather than improve its technology or customer service. In an emailed response, Mr. Rivero said his company’s platform had “released more product updates in 2024 than in any year in Resy’s history,” including protections against reservation fraud and tools for turning tables faster, but he did not address the issue of glitching.
Our Take:
I don’t have a problem with the optimism around operators having the upper hand, but let’s be honest: the vast majority of the restaurants being offered big bucks are in major markets. These places are the “hotspots,” with hard-to-get reservations in affluent neighborhoods.
For years, OpenTable was the only game in town. They were THE reservation platform. Yes, there were other platforms, but they were small and lacking the tech and reach OpenTable had. Most of these were just widgets on a restaurant’s website, without their own search engines. Then came Resy…
Resy is still a baby — just over 10 years old. It started as a cool, hip alternative for those fed up with OpenTable. It quickly took over the major markets, capturing the younger, trendier crowd. After American Express bought it in 2019, however, they've plateaued a bit, IMHO.
The real battle here is for who has power — or, more importantly, who has access to the hottest spots in the hottest markets. This has become a major amenity for cardholders, Amex with Resy and Tock, Chase with OpenTable, and Capital One making a move with their platform, SevenRooms. But that fight isn’t happening in mid-tier markets where OpenTable still reigns supreme. It’s happening in places like NYC, Los Angeles, and Miami. That’s not to say there isn’t a battle brewing, there is.
In short, the money is being funneled to a select few. But I think it’s going to be an interesting few years for reservation platforms, and we’re going to see a lot of money thrown around before this is over.
Employee Exodus
The Headline: “Why Your Favorite Server Quit — the Real Cost of Hospitality Burnout”
The Source: Food & Wine
What You Need to Know:
Amongst the rubble of an industry rebuilding in 2025, the hospitality employee is under tremendous stress and strain. It’s never just one thing. It’s the combined weight of it all — another double, another last-minute no-show, another customer snapping their fingers like you don’t have five other tables in your section. When you finally get a second to breathe, something else changes. Maybe the owner is stressed about the cost of goods, and macroeconomics is affecting their customer count. The flywheel of hard truths continues for the hospitality industry.
…
In 2023, the National Restaurant Association reported that 62% of operators said they didn’t have enough staff to meet demand. This isn’t just about hiring; it’s about retaining. The new reality is that people are quitting faster than we can replace them. Ask a restaurant manager and they’ll tell you that turnover isn’t seasonal anymore, it’s constant. You spend weeks training someone only to have them leave mid-month. You post job ads, offer sign-on bonuses, text a mile a minute, and still shifts go uncovered.
…
The biggest factor is that the pay still isn’t right. The economics of this industry are unsustainable for most workers in 2025. The median hourly wage for servers in the United States, including tips, hovers around $17–$18, but that varies wildly by market and season. That may have worked in 1995, but not now. In many places, the base wage before tips is still below $3 an hour. You work three tables during a rainy midweek lunch shift and you leave with $28 in your pocket.
…
In April 2024, the hospitality platform Axonify published a study showing that 47% of restaurant managers in the U.S. reported experiencing burnout. Nearly 70% say their team members have voiced it too. In the same study, it was noted that only 46% of those surveyed said their companies offered any training around mental health and wellbeing. To me, that feels like it’s not just anecdotal; it’s structural.
Our Take:
Burnout is a reality that spans every role in the restaurant industry — whether it's busser, chef, manager, cook, server, bartender, dishwasher, or owner. No position is untouched by it. It's a grim reality.
But within the gloom, there is hope: I've worked in spaces and been around operators who have defied the norm. They focused on building real culture — starting with empathy for their team. With that foundation, they created a workplace where culture thrives. Many of these operators didn’t have the capital to offer the bells and whistles they’d ideally want, but they invested in their people in meaningful ways. That investment, even when small, created success, and success allowed them to reinvest in their teams over time.
Of course, no industry is perfect. The restaurant business will always have its share of people who exploit others, and there will always be those who believe that working harder, not smarter, is the key to success. But as the article rightly points out, change is possible. And in my view, it begins with how you treat your team. Even if you don’t have the funds to shower them with perks, there are other ways to show you value them. It may be modest, but it’s a start.
Cava’s Current Success
The Headline: “CAVA’s investments in underpricing inflation levels are paying off”
The Source: Nation’s Restaurant News
What You Need to Know:
Nearing the end of a mostly tough slate of first quarter earnings reports sits a silver lining in CAVA, which on Thursday reported a 10.8% same-store sales increase, a 28.2% revenue increase, and a 7.5% traffic increase. Restaurant-level margins were also up to 25.1%, while average unit volumes are now $2.93 million (last year, they were $2.6 million).
…
CAVA’s results were driven by more than just a growing affinity for Mediterranean cuisine, however. The company continued to ride the momentum of its steak launch last June, while new campaigns such as National Pita Day have driven higher engagement levels. The recent enhancement of its loyalty program, from a transaction-based experience to an earn-and-bank points model, has also bolstered engagement and sales. Sales from loyalty members have increased by 340 basis points since the program’s relaunch in October, while the program itself has reached nearly 8 million members. Later this year, CAVA will enter its next loyalty phase, including a new tiered structure designed to tailor benefits to guest preferences.
“The original goal was … to drive greater engagement and that’s what we’re seeing. We’ve lowered the entry-reward hurdle and have gotten users more engaged. It’s allowed us to communicate in a more personalized way,” Schulman said. “Our tiered structure builds upon the points structure to further recognize guests for their frequency and add increased benefits. We’re seeing north of 50,000 registrations per week into the program.”
On the tech side, the chain’s new labor deployment and scheduling solution has improved productivity, Schulman said, while the kitchen display system is now live in 42 restaurants with 250 restaurants expected to have the system in place by the end of the year. The KDS has also improved productivity, as well as accuracy, leading to better guest satisfaction scores. Finally, CAVA is testing AI video technology in four restaurants, helping employees determine how much food to prepare and make informed decisions in the back of house.
Value proposition
That said, perhaps the biggest advantage for CAVA in this moment is its value proposition. According to Technomic, the chain’s average check size is $15.60, versus Chipotle’s $17.05, and Qdoba’s $19-plus. McDonald’s, meanwhile, has an average check of $11.85.
Our Take:
While the mass of the restaurant sector is struggling, Cava is killing it. There are a few recurring themes that pop up with businesses that are bucking the trend, and Cava exemplifies the two largest of those themes.
Cava’s use of technology to streamline operations, much like Wingstop, has helped propel its profits. Both companies had solid Q1 reporting, proving that smart tech investments can lead to strong returns. But, hands down, the biggest factor in Cava’s success is its value proposition.
Their pricepoint sits above McDonald’s but below Chipotle and Qdoba. The quality? Definitely sits higher than McDonald’s, and arguably on par with Chipotle and Qdoba. I get it, Cava's Mediterranean cuisine sets it apart from the Mexican-inspired chains, but the value equation remains the same. Similar quality, lower price. And in today’s climate, that combination wins every time.
DoorDash Survey Results
The Headline: “Consumers trust AI for food recommendations but don't want robots preparing it, finds DoorDash survey”
The Source: Restaurant Business Online
What You Need to Know:
That was the sentiment expressed in the 2025 DoorDash Delivery Trends Report released Thursday, based on a survey of 1,500 Americans earlier this year. Mindful drinking, jumping on a viral sensation and generational differences in guilty pleasures are also on the rise.
…
Here are some of the more surprising findings from the 2025 report:
• 52% of diners are open to AI personalizing recommendations from restaurants or apps based on their past orders.
• Only 15% fully trust robots or automated food assembly systems to prepare a restaurant meal— although men are twice as likely as women to be comfortable with robotic chefs. The human touch is still a selling point in a restaurant kitchen.
• 98% of consumers say they order delivery to satisfy a craving, and 20% are ordering restaurant delivery more often than last year.
• When choosing a new restaurant for delivery, 67% of Boomers prioritize pricing, while Gen Z leans into food photos (46%), social media (27%) and influencer recs (20%).
• 74% of Gen Zers and 69% of Millennials have ordered a restaurant item after seeing it go viral on social media. But of those, only 40% thought it was worth the hype.
• 42% of survey respondents are ordering alcohol for delivery more often than they did in 2024—but there’s a growing emphasis on mindful drinking.
• 80% of people who ordered alcohol delivery ordered low- or non-alcoholic drinks in in the past six months—more than double 2024 figures.
Our Take:
There is a lot to take in here, so let’s take it point by point:
52% of diners are open to AI personalizing recommendations from restaurants or apps based on their past orders.
We all just need to get used to more and more AI. Honestly, I didn't even realize it was AI making suggestions, I just thought it was something built into the algorithm.
Only 15% fully trust robots or automated food assembly systems to prepare a restaurant meal — although men are twice as likely as women to be comfortable with robotic chefs. The human touch is still a selling point in a restaurant kitchen.
DUH! No one wants a robot preparing their food, come on.
98% of consumers say they order delivery to satisfy a craving, and 20% are ordering restaurant delivery more often than last year.
It’s not much of a surprise that more people are dining in (either cooking or ordering in). I think this trend will continue so long as consumer confidence is where it is. All the more reason for those who don’t offer delivery to offer it, and yes, sometimes those cravings are for higher line items, like steaks.
When choosing a new restaurant for delivery, 67% of Boomers prioritize pricing, while Gen Z leans into food photos (46%), social media (27%) and influencer recs (20%).
Boomers are cheap and Gen Z likes pretty shiny things.
74% of Gen Zers and 69% of Millennials have ordered a restaurant item after seeing it go viral on social media. But of those, only 40% thought it was worth the hype.
All the more reason to keep on your Instagram/social media skills
42% of survey respondents are ordering alcohol for delivery more often than they did in 2024—but there’s a growing emphasis on mindful drinking.
This one is a tougher read for me because it doesn’t specify if more money is being spent, or just that more people are ordering booze, but doing so in a mindful manner. I would be interested in seeing some hard numbers as to alcoholic drinks per order and if the total dollar spend on booze to-go has gone up or down.
80% of people who ordered alcohol delivery ordered low- or non-alcoholic drinks in the past six months—more than double 2024 figures.
It’s time for everyone to up their non-alc game, with better offerings both in-house and to-go.