Can smaller portions lead to bigger sales? Who is riding the proffee wave? Can a c-store become a QSR? Will friends flock to the new Central Perk location? Answers to these questions and more, This Week in Foodservice.

Have consumers hit their breaking point? While the first half of 2025 was relatively stable for the restaurant industry, consumer traffic at U.S. retail and dining establishments has declined three consecutive months, per data from Placer.ai.

In fact, August saw an overall decline 1.8% in visits to dining establishments, the largest dip over the past three months, Placer.ai reported. This was driven in part by a 3.4% decline in visits to quick-service restaurants compared to the same period in 2024.

The news was not all bad, though, given that August visits to fine-dining restaurants increased 2.9% year-over-year. Other segments seeing an increase in customer visits include coffee chains (2.4%), casual dining chains (1.4%) and fast-casual chains (0.5%).

Foodservice News

• New patterns of demand for foodservice continue to emerge as workers gradually return to the office, per data from Circana. Average office occupancy now stands at 52% in 2025, which is 3% greater than 2024. This shift led to increased demand for “portable and convenient food options that fit into commute and workplace routines,” Circana noted in a release. The research firm also noted that morning meal traffic at foodservice locations increased in the first quarter of 2025, marking the first time that happened since the second quarter of 2023.
• Can smaller portions lead to bigger sales? Olive Garden hopes to find out. The Italian-themed casual dining chain is experimenting with a “lighter portion” section of its menu, per multiple published reports, including this one from ABC News. At present, 40% of Olive Garden’s locations are testing a menu with a section offering reduced portions on seven of its existing entrees at a reduced price in an attempt to drive sales growth. Don’t worry, though, the smaller portions still come with the chain’s trademark unlimited breadsticks and salad.
• Jeni’s Splendid Ice Creams is entering the franchising game. Jeni’s has 90 units and its corporate locations average $1 million in net sales, per a Restaurant Dive story. That’s a little higher than its competitors. The chain has 90 corporate locations and distributes its ice cream through major big box retailers like Whole Foods, Target, and Kroger. Jeni’s has trade areas available for franchised development in 29 states.
• Starbucks is ready to ride the proffee wave. For the uneducated, like the author of this blog, proffee refers to protein-infused coffee, which is apparently a big deal. The chain will offer a protein cold foam and a line of protein lattes that incorporate between 15 and 36 grams of protein per 16-ounce beverage, per a story from The Food Institute. Both offerings fortify the beverage’s milk ingredient with protein powder. These protein-infused offerings are part of the chain’s permanent menu and not a limited time offer.
• Central Perk Coffeehouse will open a permanent location in New York City later this fall, per a Chain Store Age story. The Times Square location will provide a modern take on the coffeehouse featured in the television show “Friends.” The menu will feature six “Friends” themed coffee blends and an orange couch reminiscent of the one that appeared on the television show. This will mark the second Central Perk location, with the first one operating from Boston.
• Appears as if Fast Stop wants to become a quick-service restaurant. Mahmoud Ziadeh, founder and CEO of the Louisiana-based c-store chain, has acquired nine former QSR sites with the intention of bringing Fast Stop’s made-to-order food offerings to a restaurant-only format, per a C-Store Dive story. Fast Stop has more than 40 locations across Louisiana and New Mexico.
• Despite pruning its system by closing 41 restaurants last week, Salad and Go thinks its future remains in full bloom. “Concentrating our efforts will allow is to strengthen the brand and invest more in improving quality, driving innovation and building community,” CEO Mike Tattersfield told QSR magazine. The company had more than 140 units systemwide as of May, all of which were corporate locations.
• An activist investor wants Cracker Barrel’s CEO fired. Sidar Biglari accuses CEO Julie Masino and Cracker Barrel management of alienating loyal customers and eroding shareholder value, per a FSR Magazine story. This comes after the family dining chain’s well publicized ill-fated attempt to update its logo and décor. Biglari owns 2.9% of Cracker Barrel stock. It does not help that Cracker Barrel saw customer traffic decline 1% during the first half of August, per a different FSR story. Since August 19, the day Cracker Barrel revealed it removed the person, the rocking chair and the barrel from its logo, traffic has declined 8%.

Economic News

• Could the restaurant industry be in line for some relief from tariffs? Perhaps. The government appears poised to lift the tariffs on many of the imported items routinely used in food-away-from-home business, per a story from IFMA The Food Away From Home Association. The list of items that could be eligible for a carve out from import charges runs from avocados and coffee to certain types of foodservice equipment, such as stoves and some types of freezers, coolers, and drink dispensers.
• The number of building permits issued for private homes declined 3.7% in August compared to the previous month, per data from the U.S. Census Bureau. August permits came in at 11.1% less than the same period in 2024. August permits for single-family homes declined 2.2% compared to July. In addition, August housing starts declined 8.5% compared to July.
• So just how is the U.S. labor market performing in 2025? Given the wild swings among the various jobs-related reports, it can be hard to tell. The fine folks at ITR Economics, however, have done the hard work to provide some much needed context on this all-important macroeconomic metric. While ITR describes employment as “uncharacteristically weak” they add its “only slightly weaker than 2024. ITR does project employment will grow “mildly again over the balance of 2026.”