Changing the way restaurants operate: a profitable and urgent strategy

Menu tweaks or limited-time offer rollouts are no longer enough. The simple but effective business solutions of the past no longer allow restaurants to adapt to industry trends and maintain profitability. “There is an increasing urgency to test new business models,” warns the James Beard Foundation (JBF).

iStock - Nattrass

“Change is the only constant; to stagnate is to fall behind, especially in this industry,” said one anonymous chef surveyed by the JBF, the nonprofit organization founded in memory of renowned American chef James Beard.

Behind this more philosophical than pragmatic confidence about permanent change lies a lesson from the foundation's 2025 report on the independent restaurant industry in the United States: by stepping out of their comfort zone and proactively diversifying their ways of doing business, hospitality establishments can better withstand slowdowns and emergencies.

“Respondents who embraced change reported better performance – restaurants that experimented with non-traditional models said they expected higher or similar profits, while those that did not innovate said they were more likely to experience lower profits,” JBF observers note.

The need to test new things

86% of restaurants have implemented at least one new business model, testing changes to tipping, staff management and alternative revenue streams such as pop-ups, event spaces and catering.

A tactic that is easier to state than to implement, due to the high costs associated with change in general and the limited resources of the restaurant sector; particularly for single brands, without a chain or group to rely on.

Given the trend of increasing overhead costs, such as food, packaging, and labor, economic pressures are forcing restaurants to evolve their operations.

"Rising costs or not, many owners are unwilling to meet customers where they are and adapt. This is always a fatal mistake," says one respondent.

Developing and testing new business models is like developing and testing new recipes. To improve both revenue and bottom line, it's important to meet the needs of customers with evolving habits.

No ready-made recipe

But "as restaurants develop these models, it's important that they stay true to what they are. When testing, it's essential to be intentional—there's no one-size-fits-all approach," the James Beard Foundation says. Some restaurateurs have successfully identified areas of experimentation and innovation to create new revenue streams. For example, small-scale trials of new concepts, with weekday-only menus, alternative pricing with pre-paid meals, all-inclusive experiences, or chef-curated tastings.

Others have leveraged their data, from reservation systems, to objectify their customer habits, or monetized interactions with their loyal customers by selling derivative products (cookbooks, clothing, high-end ingredients sold on-site or online). Or they have played the networking card, with collaborations between industry peers through knowledge-sharing events. "This is a great way to stay abreast of trends and changes impacting the sector," the rapporteurs note.

To overcome this, restaurants would have no other option but to be creative. But by innovating with models that are always aligned with their brand identity, operational needs, and objectives.