Foodservice 101: A Modern Foodservice Strategy Guide for 2025
In 2025, foodservice isn’t just about preparing food—it’s about reacting quickly to what consumers want, adapting to fast shifts in cost and labor, and doing it all with fewer resources. According to the National Restaurant Association, the U.S. foodservice market is expected to hit $1.5 trillion this year, with 15.9 million people employed. This massive scale calls for smarter decision-making, powered by tools—not just gut instinct.
This Foodservice strategy guide gives operators a sharp edge. It’s made for chains, CPG foodservice teams, and ghost kitchens that need fast execution and clear insight. The secret to scaling today? AI in foodservice.
What is foodservice today?
Foodservice today is a dynamic, technology-driven industry focused on delivering high-quality food, beverages, and service experiences that meet diverse consumer needs for taste, convenience, health, and sustainability. The sector is characterized by rapid innovation, robust competition, and a strong emphasis on customer experience and operational efficiency. In 2025, the industry is projected to reach $1.5 trillion in sales and employ 15.9 million people, making it one of the largest private-sector employers in the United States. Key trends include the rise of digital ordering, sustainability initiatives, health-focused menus, and the integration of AI and robotics into operations.
Foodservice and retail serve different but complementary roles in this ecosystem, with foodservice providing agility and direct customer insight, and retail offering broader distribution and long-term brand visibility—foodservice and retail serve distinct functions in shaping what and how consumers eat.
Who are the new foodservice operators?
Ghost kitchens
They don’t need dining rooms. These agile operations cook for delivery and focus on speed and demand fit. Many run multiple virtual brands under one roof. According to Matthews REIS, this model is expanding as brands look for flexible entry into foodservice.
Restaurant chains
Chains are refining operations using structured playbooks and digital tools. Think standardization plus smarter menus and faster prep lines.
CPG foodservice kitchens
Brands like Nestlé and PepsiCo are opening kitchens or partnering with operators. These let them test products quickly, get direct feedback, and reach customers where they eat.
Success metrics
| Metric | What It Means |
| Speed | Move fast—from order to delivery. |
| Demand Fit | Know what customers crave, before they ask. |
| Brand Recognition | Be easy to remember and hard to ignore. |
Winning in 2025 means optimizing each of these using a modern foodservice growth strategy and the right tools.
The competitive edge: why execution is everything
Operators no longer rely only on POS data. They’re using AI to go from insight to action in hours. This is the core shift that sets apart winners.
Take Tastewise’s foodservice survey tool, for example—it uncovered how modern consumers are redefining quality, convenience, and appeal across food formats. Over 961,000 responses revealed that:
- 64.6% of consumers prefer cafés and casual dine-ins for meals, beating out home cooking, delivery apps, and ghost kitchens.
- Trust in food quality is highest for popular chains via delivery, preferred nearly 5x more than traditional dine-in spots.
- Menu variety is the top decision driver—chosen 3.7x more than flavor or sustainability.
- The most innovative formats are modular or build-your-own meals (67.8%), followed by sustainable packaging.
- And when it comes to language, “plant-based” outperforms all other claims, catching eyes 1.7x more than “limited time only.”
These insights aren’t just informative—they’re actionable inputs for fast, focused innovation. AI tools like Tastewise’s survey platform let operators skip the guesswork and build what the market actually wants.
This isn’t about tech for tech’s sake. It’s about building a Foodservice Strategy Guide that supports every decision—from sourcing to pricing to launch.
Recipes built on data, not guesswork
Menu planning in 2025 isn’t about inspiration—it’s about information. Operators no longer wait for customer feedback to decide what sells. Instead, they use AI in foodservice to spot flavor trends, identify gaps, and generate recipes that match local cravings and business goals.
This approach shortens the distance between idea and launch. It’s how today’s most agile teams roll out LTOs that actually move the needle—without relying on trial and error. You’re not brainstorming in a vacuum; you’re building menus based on real-time consumer interest, margin potential, and even seasonal fit.
Take the Spicy Ranch Chili Cheese Fries, for example. It combines comfort food with trending flavor cues—spice, creamy ranch, and indulgence—in a format that’s high-margin and quick to prep. That’s not luck. It’s how foodservice innovation works when AI turns insight into recipes that work on the line and on the bottom line.
Foodservice packaging is part of the strategy
Packaging isn’t just a finishing touch—it’s a core part of the modern foodservice strategy. In a delivery-heavy world, packaging affects everything from food quality to customer perception. A cold burger or soggy fries can break brand trust, no matter how great the recipe. Smart packaging choices help operators preserve temperature, showcase sustainability values, and even influence repeat orders.
Today’s best operators treat packaging as part of the product. That means investing in materials that are functional, branded, and aligned with consumer expectations—like compostable containers or tamper-evident seals. It also means tracking packaging claims that matter to customers, like “plant-based” or “recyclable.”
Packaging is no longer just an operational detail. It’s a competitive edge, especially when paired with the right tech and insights.
When foodservice goes outside restaurants
Foodservice includes more than restaurants. Think: campus cafeterias, airports, wellness clinics, convenience stores. Each format has its own challenges—like compliance, scale, or throughput—but the strategy stays the same:
- Match local demand with smart menu options
- Hit margins while keeping portions and flavors on point
- Move fast when supply shifts or a new trend spikes
And it all comes back to using AI in foodservice to make better calls. The need for foodservice innovation applies just as much to a grocery café as to a fast-casual brand.
What’s the difference between traditional and modern foodservice?
Traditional foodservice is built around formal, slower service models. These include silver service, French plating, and heavy back-of-house labor. It relies on trained staff, large kitchens, and fixed menus. It works well in fine dining, but it’s hard to scale and doesn’t move fast. Modern foodservice flips the script.
It focuses on speed, cost control, and smart use of space. Instead of long prep cycles and personal service, modern operations use tech to streamline everything—menu changes, order intake, kitchen routing. The big difference is that traditional foodservice is people-driven. Modern foodservice is system-driven. You’re still serving great food, but you’re doing it faster, leaner, and with real-time insight.
How can AI tools help foodservice operators?
AI tools help foodservice operators stay ahead without burning out their teams. They make it easier to decide what to serve, when to serve it, and how to price it. AI can predict what customers will want next week based on what they’re searching for today.
It can spot which ingredients are getting too expensive and suggest cheaper swaps that still hit the mark. It can flag which dishes are underperforming before they eat into your margins. It takes what used to be a guessing game and turns it into a clear path forward. That’s the power of having real insight baked into every decision you make.
Is foodservice a good channel for CPGs and retail brands?
Yes, and it’s getting better every year. Foodservice lets brands get in front of real consumers in real-time. That’s something retail can’t always offer. Whether it’s testing new snacks in a café or launching frozen meals through a ghost kitchen, foodservice is a way to get product feedback fast.
It also helps brands show up in new places—offices, delivery apps, stadiums—where they can connect with younger or more on-the-go audiences. For CPGs, it’s not just a marketing channel. It’s a way to build loyalty, sharpen product-market fit, and generate revenue outside of retail shelves. Done right, it can be one of the most valuable growth moves a brand makes.