Explore the top challenges, biggest opportunities, and must-know trends for independent restaurants in Texas.
of operators in Texas say higher labor costs is their biggest staffing challenge
have added service charges to try to boost revenue
now use TikTok to promote their restaurant
Texas is one of the biggest states in the U.S., which means it also has one of the biggest, most dynamic restaurant industries. To better understand the challenges, opportunities, and most impactful Texas restaurant trends, we recently surveyed independent Full Service Restaurant (FSR) owners and operators from across Dallas, Houston, and Austin. Below is a brief overview of some of the latest data about the Texas restaurant industry and what’s in store for the year ahead.
For a complete breakdown of the latest restaurant trends in Texas, you can download our free Texas restaurant report. Plus, find out how operators in Texas stack up against their peers nationwide in the full 2025 restaurant industry report.
Like their peers across the country, restaurateurs from across Texas have been struggling with higher costs, particularly higher food and labor costs. But unlike their peers nationwide, some operators in Texas have been experimenting with service charges – sometimes referred to as “junk fees” – to make up for shrinking profits. 30% of operators in Austin and more than a third (34%) of operators in Houston report adding service charges to bills in the past year – though it remains to be seen the actual impact of these charges on the bottom line.
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As mentioned, higher labor costs are squeezing operators across Texas and nationwide. In fact, 100% of respondents in our Texas restaurant report said they are spending more on labor this year than last year. In fact, nearly half (45%) of restaurateurs in Texas said higher overall labor costs were among their biggest challenges.
To try to combat higher labor costs, operators in Texas are searching for ways to boost productivity among existing staff. Part of this is being done by introducing new, time-saving tech, which a third (33%) of operators in Texas report doing. So far, QR code menus and QR code payments have been among the most popular technologies to implement.
Download the reportIncrease productivity
Increase staff retention
Introduce new technology
Reduce hours of operation
Use restaurant scheduling software
Use POS sales data to predict scheduling needs
Create labor targets
Cross-train/repurpose staff
Reduce staff headcount
Similar to a trend observed nationwide, Texas’ takeout/delivery sector continues to see significant growth. A whopping 88% of operators in Texas said they had observed takeout/delivery sales significantly or slightly increasing in the past year, making it one of the most prominent Texas restaurant trends right now.
Despite growing sales, there seems to be some growing pains when it comes to how takeout/delivery orders are managed. In Houston, operators cited technical issues with online ordering apps or software as their biggest off-premise concern, while operators in Austin pointed to difficulties maintaining order quality. Across the state, the number one issue was the cost of using third-party delivery apps, which has long been a concern for independent operators running on slim profit margins. All of this suggests that while sales are growing, there’s a lot of room for optimization when it comes to off-premise order management and fulfillment at restaurants in Texas.
Download the reportSignificantly increased
Slightly increased
Remained the same
Slightly decreased
Significantly decreased
Perhaps one of the most interesting Texas restaurant trends has been the rise of TikTok marketing for restaurants. Like their peers across the country, operators in Texas are adapting to the changing landscape of restaurant marketing and that new landscape includes TikTok.
In fact, close to half (44%) of all operators in Texas now report using TikTok to market their restaurant. While this is a smaller proportion than those who use legacy social media platforms like Facebook and Instagram, it’s a sizable (and growing segment) likely driven by the fact that organic content can gain much wider reach via TikTok’s ‘For You Page’ discovery tool. Indeed, TikTok marketing will no doubt be one of the biggest restaurant trends in Texas in 2025.
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The Texas restaurant industry is undergoing a major restaurant tech revolution and part of that includes AI. Though the number of restaurants in Texas that have implemented automation and AI falls slightly below the U.S. average, it’s clear the technology is still quite popular and being readily adopted. Among those who have implemented automation, 44% report an increase in sales, 42% report more efficient FOH operations, and 41% report more productive staff.
Though the qualitative interviews conducted for our Texas restaurant report did reveal concerns around new technology, like high upfront costs and adding complexity to existing operations, overall, operators across Texas reported feeling positive about the use of AI in restaurants. In fact, 91% of operators in Texas said they felt positive about the use of AI in restaurants, suggesting there’s strong interest in the technology, provided that concerns around issues such as cost can be addressed.
Download the reportWe partnered with research firm Maru/Matchbox again this year to survey more than 600 full service restaurant owners, presidents, and area/general managers across all 50 states, with an added focus on eight key cities: New York City, Los Angeles, Chicago, Dallas, Houston, Austin, Denver, and Las Vegas. Our 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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