Headwinds and hot lists

The restaurant world isn’t slowing down—just shifting gears. This week’s headlines spotlight bold expansion moves despite headwinds, a fresh class of rising chefs and NYC’s growing crop of velvet-rope exclusives. Delivery remains a hot topic, with details that make or break the customer experience and new questions about first-party platforms. We also dig into how younger diners are tightening budgets and what that means for operators. 

But first, the New York Times’ 50 best restaurants in America list just dropped.

Go big or go home. Restaurants are scaling up, despite headwinds.

Velvet rope. Exclusive restaurants proliferate in NYC.

In the bag. In the restaurant delivery game, it’s the little details that count.

MVPs. The NYT isn't the only one with a hot list. Check out the 20 best new restaurants of 2025 and the best new chefs of 2025.

Millennials and Gen Z are pulling back on dining out

Millennials and Gen Z, historically strong supporters of dining out, are now scaling back restaurant spending due to mounting debt, inflation and budgetary pressures. While younger consumers still value the social and experiential aspects of eating out, they are becoming more selective about frequency, price points and dining formats.

Why it matters: For restaurant owners, this signals a shift: younger diners remain culturally invested but are increasingly price-sensitive. Operators must adapt with creative value offerings, loyalty perks and social-media-friendly experiences to keep this demographic engaged. Winning over cautious spenders now can secure long-term loyalty as economic conditions eventually improve. (Nation’s Restaurant News)

The downsides of first-party delivery

Trying to save money on app fees? Turns out, first-party delivery (directly through a restaurant’s own app or website) can offer fewer advantages than expected. Though restaurants retain more control, the pricing edge is fading—consumers are increasingly expecting free delivery, and the logistical burdens of direct delivery limit efficiency gains. 

Why it matters: For your business, this means the assumed benefits of bypassing third-party platforms—better margins, ownership of customer data and branding control—aren’t guaranteed. Restaurants need to carefully evaluate whether direct delivery systems truly deliver value, or if they’re introducing new costs, complexities and customer expectations that undercut profitability. (Restaurant Business Online)

The cost of running a restaurant is higher than ever

In 2025, restaurants face sharp cost pressures: 78% of operators raised menu prices in 2024, and 82% expect more increases. Labor costs rose for 85% of restaurateurs, with further hikes projected. Supply-chain volatility, sustainability mandates and hefty capital demands for tech and energy efficiency add additional strain.

Why it matters: For restaurant owners, this reveals an urgent need to reassess margins, optimize operations and invest strategically. Pricing alone won’t offset rising expenses like labor, ingredients and utilities, which all demand attention. Those who innovate with supplier diversification, tech upgrades, menu engineering and energy savings will better sustain profitability amid economic turbulence. (Today’s Restaurant)

3.7%

The amount that restaurant spending jumped in August.

(Yahoo Finance)

12 of the least-expensive Michelin-starred restaurants

San Francisco chef suspected of robbing three banks in a day

Restaurant labor costs well above historical averages

U.S. restaurants sound alarm on impact of tariffs on food

McDonald’s new value meal prices leave fans underwhelmed

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The Prep is written by Kelly Dobkin and edited by Lesley McKenzie.