US Restaurants Add 108,000 Jobs Amid 2025 Challenges

The U.S. restaurant industry navigated a turbulent 2025 marked by rising costs and uneven performance, adding 108,000 jobs even as closures and bankruptcies plagued many operators. While overall nonfarm payrolls grew by just 181,000 jobs, the weakest annual increase in two decades outside a recession, the sector's resilience stemmed from consumers seeking affordable indulgences amid economic uncertainty.

Labor and food costs climbed 35 percent from 2019 to 2025, according to Bureau of Labor Statistics data, pushing menu prices up 31 percent between February 2020 and April 2025, the National Restaurant Association reported. These pressures, compounded by supply chain disruptions, high interest rates and debt burdens, led to widespread challenges. A survey by the association found that 42 percent of restaurants operated at a loss last year, with 60 percent of operators reporting deteriorating business conditions compared to 2024.

Closures highlighted the strain. On the Border Mexican Grill and Cantina shuttered or vacated 40 underperforming locations on February 24, 2025, citing rent and financial issues, before filing for Chapter 11 bankruptcy on March 4 with plans to sell assets...