The restaurant industry is facing “weak demand,” leading to a renewed focus on both value and customer experience, according to key takeaways from the 2025 Restaurant Finance and Development Conference reviewed by BofA Securities. Amid these competitive pressures, a new report highlights chicken and beverages as the most attractive sectors for investment and growth.
BofA Securities, which attended the conference and met with franchisees and executives from underwriters, was particularly impressed by one theme: “Chicken sector benefits from favorable protein economics.”
Analysts Sarah Senatore and Isaiah Austin also highlighted chicken’s “menu diversity,” which lends itself to both quick-service restaurants (QSR) and fast-casual restaurants. Restaurants are working to “take advantage of the privileged position that chicken enjoys compared to beef,” which has witnessed constant price fluctuations and high input costs. Franchisees and current and former bank executives in Las Vegas said chicken food costs were acceptable.
Industry insiders and executives also told Bank of America that chicken’s “broad demographic reach” is driving brand expansion and new menu offerings. Chain operators are leaning toward messages of value and quality, especially since consumers respond well to combo deals, limited-time offers, and customizable meals. Chicken can provide a platform for culinary creativity while keeping food costs under control, a key advantage as the restaurant sector continues to adapt to the post-pandemic landscape, the bank said.
A parallel revolution is taking place in the packaged food aisle. Big brands like Kellanova (formerly part of Kellogg’s) and PepsiCo are ramping up their investments in protein-fortified snacks, tapping into growing demand from health-focused Gen Z consumers and others who use products like Ozempic and want to maintain muscle mass while losing weight. Kelanova has introduced Protein Pop-Tarts, with treats that provide 10 grams of protein per serving in classic flavors, aiming to satisfy consumers’ desire for food and pleasure.
PepsiCo has also teased upcoming launches such as protein-packed Doritos Starbucks and Kroger have rolled out high-protein lattes and French toast sticks, respectively. With the fortified protein products sector expected to grow from $67 billion in 2023 to more than $100 billion by 2030, there is a consensus among industry leaders that “this is going to stick.”
A July poll by the International Food Information Council found that 70% of Americans are now looking for more protein in their diets, compared to 59% just three years ago, although some nutritionists say people don’t actually need as much protein as they’re consuming amid this food craze, and some studies show that protein powders actually contain toxic heavy metals.
Senator and Austin noted that beverages were on the minds of investors in Las Vegas as well, especially Starbucks.
Value and experience set the scene
Meanwhile, Bank of America noted that the beverage category continues to attract strong interest from investors. This growth is largely fueled by the evolving preferences of younger consumers. While rapidly expanding concepts like Dutch Bros and others are making inroads, operators acknowledged that the market is still distinct enough to support “more advanced coffee concepts” like Starbucks, which attract a different customer base with a unique mix of products and operating style.
The upbeat outlook for chicken and beverages comes as the overall industry grapples with the need to generate demand in a challenging environment. As demand declines, operators across the spectrum are focusing on customer value and experience.
In the quick-service restaurant space, companies are leaning heavily into value platforms, using bundled meals and limited-time offers (LTOs) to drive traffic among increasingly price-sensitive consumers. Fast casual concepts balance this by focusing on quality messaging, enhanced digital experiences and product personalization.
Casual dining operators recognize that the industry may have lost its focus on hospitality during the period immediately following the disruption caused by Coronavirus, and are now strategically focusing on quality of service, ambiance and creating experiential events. Across all sectors, restaurants are developing new strategies to stimulate demand during off-peak periods, including serving smaller portions and using dynamic pricing models, such as off-peak discounts.
What stands out in 2025 is not only that protein is selling, but that it is now supporting the restaurant and food retail strategy. From operational efficiency and adaptability in chicken restaurant menus to innovative new launches in protein-packed snacks and beverages, the industry is seeing tangible economics in favor of the protein trend on multiple fronts. Both restaurants and consumer packaged goods companies are betting that growing demand for protein will hold steady, even as inflation and changing health priorities impact purchasing decisions. The “protein economy” is likely to be a major consideration, at least until Americans decide they’ve had enough of it.
For this story, luck Use generative AI to help with the rough draft. An editor verified the accuracy of the information before publication.
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