Initial thoughts on The NAFEM Show. A closer look at the state of the independent operator. More tariff talk. These stories and more, This Week in Foodservice.
The NAFEM Show has a well-crafted reputation as being an industry big top of sorts due to its ability to draw members from all segments of the foodservice industry. And the association’s 2025 edition certainly lived up to its billing and then some.
From the various industry events that took place in the days leading up to the show to hundreds upon hundreds of exhibitors showcasing their wares, there was something for everyone on display last week at the Georgia World Congress Center. And the initial feedback from factories and attendees alike has been consistently positive, which is a good thing. That’s because a strong The NAFEM Show often portends good things for the overall foodservice industry.
The NAFEM Show in 2023 felt more like a coming out party as the industry was just emerging from the COVID-19 pandemic. Yes, people did lots of business at that show but that was somewhat overshadowed by an overall sense of euphoria from simply being together. In 2025, everyone was certainly happy to be together, but the show had an even greater back-to-business energy. People I’ve spoken with have said conversations both in the booth and in aisles were equally engaging and ultimately productive.
There’s still a ton of uncertainty facing the foodservice industry but for one week, at least, the general positive nature of the people who work in foodservice shoved that to the side as everyone got down to business.
Those are my initial thoughts about The NAFEM Show. Next week’s blog will include a few more details and observations. And if you’d like to share your thoughts about The NAFEM Show, I’d love to hear them.
Foodservice News
- 2024 was a challenging year for independent restaurants, per data from the James Beard Foundation’s 2025 State of the Independent Restaurant Industry study. A total of 54% of independent restaurants reported an increase in revenues, which is 12% greater than the previous year. Unfortunately, the majority of that revenue growth came from menu price adjustments. Also, 92% of respondents reported increasing staff wages in 2024, up from 84% in 2023, reflecting the ongoing rising cost of labor. Restaurant owners are navigating additional cost pressures, such as the minimum wage increases across more than 20 states and policies like California’s FAST Act.
- The National Restaurant Association has sharpened its pencil and did the math to see how much a 25% tariff on food and beverages imported from Canada and Mexico would impact operators and the numbers are staggering. It would cost operators more than $12 billion and cut the average small restaurant’s profits by 30%, per NRA data shared by Restaurant Business. The NRA adds that the average restaurant runs on pre-tax margins of 3% to 5% and urged the administration to exempt food and beverage products from these tariffs.
- Marc Lore has big plans for his Wonder Restaurant Group. The term disruptor gets tossed around rather loosely, but it may not be strong enough if Lore follows through on his goals. During a presentation at The NAFEM Show, Lore shared his vision for Wonder, which includes developing a “super app” that can help customers choose their meals and play a larger role in their health journey.
- Chipotle founder Steve Ells is at it again. His latest venture is a New York City-based sandwich concept called Counter Service, per an Eater story. The sandwiches are designed by Andrew Black, former chef at Eleven Madison Park. Black was also behind the menu at Kernel, which is a previous Ells initiative. Right now, the labor model is pretty tight for Counter Service, with three staff members working the location.
- Fast-casual Mediterranean concept Roti is about to get a makeover. Earlier this month, the chain was acquired by BroadPeak Capital, led by Edible Arrangements founder Tariq Farid and BlackRock veteran Aseem Khatri has acquired the 17-unit chain, per a QSR magazine story. And the new owners plan a “comprehensive transformation,” including operational enhancement, market expansion and culturally diverse menu innovation featuring influences from South Asian and Pacific cuisine.
- Starbucks is shaking up more than its iced drinks. As part of its “Back to Starbucks” plan, the Seattle-based coffee chain plans to eliminate 1,000 current support positions and several hundred unfilled positions, per a letter from CEO Brian Niccol to the company’s associates. Starbucks says this does not impact employees at the store level. “We are simplifying our infrastructure, removing layers of duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” the letter said. The chain also plans to cut some of its “less popular items” in an attempt to streamline its menu, per the Associated Press.
- Golden Corral is launching a new fast-casual concept. Known as Golden Corral Favorites, the chain will offer a many of the buffet chain’s signature food items in a streamlined format, per a release posted to Franchising.com. This is not Golden Corral’s first foray into the fast-casual space. The chain piloted another concept called Homeward Kitchen. And it plans to convert that restaurant into a Golden Corral Favorites unit.
- Dominio’s sees big potential for third-party delivery. The chain’s CEO projects it will become a $1 billion sales driver in the future and extended its exclusive deal with Uber Eats through May 1, per a Restaurant Dive story. Aggregator marketplace sales made 3% of sales in 2024.
- Just Salad raised $200 million in a new round of funding. Investors include Wellington Management, D1 Capital Partners, Neuberger Berman and Stripes. The chain, which emphasizes salads and convenience, will use the funds to drive its growth, per a Restaurant Dive story.
- Multiconcept operator FAT Brands continued its development of co-branded units. The company opened a Great American Cookies and Marble Slab Creamery location in Huber Heights, Ohio, its first in the Buckeye State. The company is also testing a tri-branded unit in Texas.
Economic News
- Consumer confidence took a big hit in February. The Conference Board’s Consumer Confidence Index declined seven points in February for a reading of 98.3. This was the largest monthly decline since August 2021, per a Conference Board spokesperson. The Present Situation Index dipped 3.4 points for a reading of 136.5 and the Expectations Index dropped 9.3 points for a reading of 72.9. This marks the first time since June that the Expectations Index came in at less than 80, which usually signals a recession, per The Conference Board.
- Consumers got a small break last month. Disposable personal income increased 0.9% in January of 2025 while personal income expenditures decreased 0.2%, per the U.S. Bureau of Economic Analysis.
- Initial jobless claims climbed 22,000 for a total of 242,000 for the week-ending February 22, 2025, per the U.S. Department of Labor. This is significantly greater than the 225,000 claims forecast by economists polled by Dow Jones, per a CNBC story. The 4-week moving average was 224,000, an increase of 8,500 from the previous week.
- New orders for manufactured durable goods in January increased 3.1%, the U.S. Census Bureau reported. This followed a 1.8% December decrease. Excluding transportation, new orders were virtually unchanged. Excluding defense, new orders increased 3.5%. Economists had projected a 2.0% increase, per this NASDAQ story.
- Sales of new single-family homes declined 10.5% in January compared to the previous month, per estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. January’s decline also represents a 1.1% dip compared to the same period in 2024.