The State of Fast Food Restaurants in 2024 & 2025

There are in the USA, companies like Hooters, Red Lobster, Outback Steakhouse, Chili's, Wendy's, Burger King (2023) and many other fast food outlets. And in the UK among others is Papa John's and the restaurant group (sold off to Apollo Global Management) brands and not to mention Pizza hut. In November 2024 the decline continues and certainly is not helped by the current government.

One of the more recent companies to suffer in the USA is Hooters who are closing dozens of their restaurants because of inflation rates and other costs. But this problem is not just about Hooters and many companies even in the UK are now citing those high labour costs for staff - increased in the UK in April 2025 substantially by the government. Based at an approximate minimum wage of over $20 per hour in the USA and here in the UK for over 21 year olds that minimum wage is (as of April 2025)  £592.35 per week. It's easy to see that in the USA (with a quick conversion to GBP) that they pay equivalent to £15.87 (or higher) and so are also under pressure where labour costs are concerned.

Often seen as a solution, there was a move towards off-premises dining as Deloitte confirms in their report, but that does not seem to be saving companies from closures.

Many companies have decided to move towards using advanced technology in their restaurants, and while customers between 18 and 38 don't mind the technology a (58%) majority are happy to return when automation is involved. However, diners that are aged 39 or older tend to like the automated systems less. In fact Deloitte suggests 42% of the overall visitors are not happy. This can be a barrier for older customers that might turn away and visit less automated systems elsewhere.

Currently, for restaurants that are operating cashless and likely automated technology sites also, only 19% had any experience with automation, but a big 62% said they were very likely to order on a visit if the restaurant had the cashless facility in operation.

The dilemma with Automated Technology Systems and Customer Experiences

Interestingly McDonald’s had recently decided to remove the AI technology used for ordering food simply because in reality, the artificial intelligence it had on test in over 100 sites in the USA did not work as desired it seems. The system used a voice driven and automated system that ended up being unsuccessful because of problematic results of AI and in the system under trial. While McDonald's found out that AI is maybe 'not quite ready' to be rolled out, and has since moved that system forward once again, can you imagine a problem like that in smaller restaurants and fast food chains and what the net result of losing customers could be? Careful consultation with professionals that don't make decisions about 'how great' their own solution is remains vitally important particularly with automated technology systems in restaurants, fast food chains, pubs and bars and many other hospitality type of businesses.

Many of the restaurant systems are generally aimed at reducing the overall cost of staff. For example, Long Range Systems UK Ltd (LRS UK is part of the Long Range Solutions offices based in Dallas TX, USA) offers a 'Table Tracker' system that is extremely successful throughout the United Kingdom and other countries. While Table Tracker still requires staff to take food to the table, the food delivery is substantially speeded up and improved because staff know the exact location of the customers table. The reporting can show key metrics that are unobtainable in any other way. It can be a massive advantage when there are many tables. The system works effectively for 40 tables or more up in to the hundreds! LRS has supplied 'Table Tracker' systems since 2008 and those are still creating the advantages of increasing the efficiency of staff even today in 2024 with their Table Tracker Version 3 solutions.

A second advancement is to use a tracking device along with an automated ordering system that often has a touch screen or kiosk involved. Firstly, staff costs are reduced, the customers can order quickly and efficiently and if everything works everyone is a winner. However there are a number of caveat's with this 'enhanced' type of system for ordering that have been reportedly seen on-site here in the UK but also in the USA and those problems are similar with the same resultant long term sometimes problematic effects from some suppliers.

Older customers and Kiosk Automated Systems

If your restaurant has a clientele of older customers (maybe 38+) then be prepared for problems like: customers cannot use the system, no staff to help with problems, equipment not working properly or 'out of order', customer cannot pay except with cash, system 'loses' the customer order but the customer has paid, and a multitude of other issues that will cost the restaurant business and reputation in the longer term. The customer experience is anything but helpful and friendly or improved, as it was before the advanced automated systems were installed when using real staff. But staff cost money.

The continual drive for automated solutions in restaurants is because of increasing costs that make the restaurant otherwise uneconomic to operate.

The Real World Experience

Some REAL reviews* and comments over the last year on the internet with poorly implemented advanced automated solutions include customer opinions like these that follow:

Reb***** C
Disappointing
The ***** is such a downgrade from the old one. Dark and dingy, dirty tables, poor ordering system, where half of the items were out of stock at 11:45. 20 minute wait for a lukewarm coffee? And items of food/drink were brought out in dribs and drabs. Such a same (SIC) as we loved the old *****

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L*** K
Poor Service
They can’t even get the basics right. Very poor experience from
***** and not what I would have expected.

Order via the screen and take a locator disc to your table. After about five minutes the toasted tea cake arrived. No drink at this point.
The server said she would return with butter. Not sure why it was collected at the same time as the tea cake.
Tea cake going cold and butter arrived.

Still no drink .,,.,

Coffee arrived 15 mins after ordering and of course tea cake already eaten.

Really surprised at poor service

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88Gil***** 60
New ordering system is rubbish
Visiting ***** I thought ***** would be a great choice to sit and enjoy lunch, but what a disaster! No info explaining what to do i.e. get a table first before using touch screen, which were at the entrance. SO...people were trying to order before finding a table number, looking mega confused and a lone member of staff was rushing about trying to maintain some order!!
Do people actually get paid to design such inefficiency?
I got a takeaway from the Food Hall.

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From research some enhanced automated solutions also had a number of hardware failures and some customers insisted they would never return to the restaurant. Getting customer experience wrong will result in lost business. Deloitte confirmed in their report that customers 'prefer a 'frictionless' digital experience for delivery and 'take out' orders. From what is happening in 2023 and throughout 2024 in general customers that receive poor experience through inoperable or poorly developed advanced technology systems do not tolerate such service levels. That will continue through 2025 unless there is some sort of Sea Change.

This leaves restaurants in a 'can't do right or wrong' quandary, with some technology brands not actually meeting the needs of customers in some cases, but at the same time some restaurants confirm they NEED to reduce the overall operating costs to stay in business.

Conclusions about poorly implemented automation systems

There are many reports and articles on the internet currently where some authors suggest everything technology based is exactly what you need to change your restaurant or fast food venue in to success and viability in 2024 and beyond. But the  AI based solutions that some companies have invested in (as an example) with results that have been likened to being in the 'wild west' and without expected results need careful monitoring.

The costs involved are often higher for automated technology than some other technology solutions. Importantly, those costs have to be 'passed on' one way or another to the customer. Increasing the costs requires other changes in the business to offset those overheads and customers might not remain loyal with massive change to the quality of service that in reality does not always improve either the food or service offered.

The current disruption with staff and those higher costs (and even higher in April 2025 for the UK) and staff shortages have been a leading problem for a while. There is no doubt that the current less than perfect operational and financial difficulties of restaurants pubs and bars and other fast food outlets is forecast to worsen over the remainder of 2024 and through 2025 but may continue longer than envisaged. Forecasts can be wrong and applying due-diligence with operating costs, the quality of service and of the food.  First class service provided to customers for a reasonable price is essential and when managed by experienced higher management will certainly help to dull the effects of these more difficult times.

Why not post your opinion below about your own experiences either as a customer or employee or restaurants pubs or bars.

The Author: Anthony McKenzie has written a number of articles and has created many independent reviews that readers often find useful in a number of business sectors..

* Cited reviews have been edited to remove companies names and locations but note that LRS products were NOT involved with those systems where the feedback is shown.