2025 Los Angeles State of Restaurants Report
Explore the top challenges, biggest opportunities, and must-know trends for independent restaurants in Los Angeles.
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Report Highlights
of operators in LA have raised menu prices in the past 6 months
of LA operators offer a loyalty program (up from 49% in 2023)
is the average turnover rate LA operators are experiencing
2025 LA STATE OF RESTAURANTS REPORT
Dive Into the Latest Restaurant Industry Trends
The Los Angeles restaurant industry has been experiencing signs of a comeback, as many operators are seeing increased profit margins and a rise in takeout/delivery sales. However, despite some positive Los Angeles restaurant trends, the city’s restaurateurs have been struggling with a number of challenges, ranging from staffing and labor concerns to high levels of debt.
We recently conducted a survey to help restaurateurs understand how their peers are combating these challenges and the solutions they’ve put into place. In this report, we surveyed many independent, full service restaurant operators from across Los Angeles. This survey was part of our larger 2025 State of Restaurants Report, which involved polling over 600 full service restaurants to gather the latest restaurant trends nationwide.
If you’re interested in exploring more LA restaurant trends and insights, download the 2025 LA Restaurant Report for a complete picture of all the latest Los Angeles restaurant trends.
LA Operators Taking Out Loans and Financing to Cover Rising Costs
Like many cities across the nation, one of the most prominent restaurant trends in LA is that operators are experiencing the weight of rising costs, specifically higher food costs. However, unlike other cities, 55% of Los Angeles restaurateurs say they have turned to loans or applied for financing in the past six months to battle the higher expenses they’re facing, which suggests that cash flow may be an increasing concern. More specifically, 45% of Los Angeles operators have taken out a bank loan, 39% have taken out a business line of credit, and 35% have relied on a loan from friends and/or family.
Download the reportTop Types of Loans/Financing LA Operators Have Taken Out in the Past 6 Months
Rising Labor Costs Have Become a Burden for LA Operators
Los Angeles operators are certainly feeling the weight of higher costs, especially labor costs. But unlike their peers, one of the most popular ways Los Angeles operators are combating high labor costs is by reducing staff headcount. In fact, 34% of operators in Los Angeles have resorted to reducing their staff headcount – a much higher proportion than any other city. While a useful way to cut costs in the short term, this strategy may be playing a role in Los Angeles restaurateurs’ struggle to attract and retain talent, which may become an even greater issue in the long-run.
Download the reportTop Strategies Implemented to Reduce Labor Costs
Increase productivity
Increase staff retention
Introduced new technology
Reduce staff headcount
Majority of LA Operatorss Still Favor Menu Price Hikes
In Los Angeles, menu price hikes continue to be the primary strategy for covering higher costs. As a matter of fact, 52% of Los Angeles operators reported raising their menu prices in the past six months, which is a greater proportion than other U.S. cities, such as Houston and Las Vegas, and higher than the U.S. average of 47% who raised prices. The consequence of raising menu prices has resulted in Los Angeles operators experiencing fewer customers visiting during the week and negative reviews, which signals diners may have a lower tolerance for menu price hikes.
Download the reportChanges in Consumer Behavior Following Menu Price Increases
Preparing Orders On Time is LA Operators’ #1 Off-Premise Challenge
Los Angeles restaurants have been fortunate to report experiencing an increase in the number of diners ordering takeout/delivery, despite tough economic conditions. However, when it comes to the actual process of fulfilling and delivering off-premise orders, operators are currently facing many challenges. More specifically, 21% of Los Angeles operators reported that preparing orders on time is their biggest online ordering challenge and 20% say that order accuracy is their biggest concern. As a result, operators in Los Angeles are now exploring different online ordering options to deliver the best experience for their guests.
Download the reportBiggest Online Ordering Challenges in LA in the Past Year
Preparing orders on time
Order accuracy
Technical issues with ordering apps/software
Maintaining quality
Cost of third-party apps
TikTok Usage Among LA Operators Rises from Last Year
In the past year, TikTok has become an increasingly popular platform among Los Angeles operators. In fact, 48% of Los Angeles operators now report using TikTok to promote their restaurant, which is a significant increase from 32% who said the same last year. This trend demonstrates just how powerful of a marketing platform TikTok has become for Los Angeles operators to promote their businesses and attract new guests.
Download the reportSocial Media Platforms Used by Restaurants in LA
LA Operators Are More Cautious About Automation
One of the more notable LA restaurant trends is that Los Angeles operators tend to be more risk-averse than their peers when it comes to new tech. In fact, when operators were asked about their top barriers to automation, 35% say ongoing expenses are the biggest hurdle and 37% say they’re concerned about reliability issues – a much higher proportion than the U.S. average. Additionally, 66% of Los Angeles operators say they plan on spending significantly or somewhat more on technology in the next six months, which, while a high proportion, is still lower than the 71% who said the same nationwide.
Download the reportTop Barriers to Automation in LA
Concerned with system reliability
Ongoing expense
Technology seems too complicated
Already efficient without the use of automation
High upfront costs
Haven’t had time to research/purchase
Methodology
TouchBistro partnered with research firm Maru/Matchbox to survey more than 600 full service restaurant owners, presidents, and area/general managers across all 50 states about the state of the restaurant industry, with an added focus on eight key cities: New York City, Los Angeles, Chicago, Dallas, Houston, Austin, Denver, and Las Vegas. The restaurant research was conducted from June 27 to July 15, 2024. The statistically significant survey results are accurate 19 times out of 20.
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Download the 2025 LA State of Restaurants Report
For a complete picture of the changing restaurant industry landscape, download the 2025 LA State of Restaurants Report for free today!
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