Arash Farin, Ming-Tai Huh & Sherry Jackman Reveal 2025 Food & Beverage Trends

Industry leaders Arash Farin, Ming-Tai Huh, and Sherry Jackman share their perspectives on the key trends shaping the food and beverage industry in 2025. They highlight emerging consumer preferences, technological innovations, and sustainability initiatives that are transforming the sector. Their insights cover shifts in product development, packaging, and service models, offering businesses and entrepreneurs guidance on staying competitive and meeting evolving market demands in the coming year.

In recent years, businesses across every sector have faced rapid operational changes, creating a completely new landscape for the food and beverage industry. Companies are now navigating complex challenges related to tariffs, legislation, employment, and supply chains, pushing even seasoned industry professionals to innovate and find creative solutions.

Amid these shifts, a pressing question arises: Are the new protocols and best practices temporary, or are they here to stay? Restaurants, manufacturers, distributors, and vendors need clarity on which trends and standards require attention to remain competitive.

To shed light on these challenges, the LA Times Studios team consulted three leading food and beverage experts, gaining insights into the current state of the industry and emerging trends.

Regulatory Outlook for 2025

Sherry Jackman, Partner at Greenberg Glusker LLP, identifies Extended Producer Responsibility (EPR) as a major regulatory focus for 2025. States such as California and Oregon now require companies to take full responsibility for packaging waste, including financial and operational accountability. Businesses must register with Producer Responsibility Organizations (PROs), report packaging data, and pay fees based on recyclability. To comply efficiently, companies may need to redesign packaging to incorporate sustainable materials.

Arash Farin, CEO of Centerstone Capital, highlights multiple regulatory concerns, including updated FDA definitions for “healthy” labeling, BVO bans, state-level chemical restrictions, food traceability rules, and front-of-pack nutrition labeling requirements. Additionally, companies must be prepared for potential FDA overhauls and reduced inspections, emphasizing the need for proactive compliance.

Future of the Industry

Ming-Tai Huh, Head of Product at Square, foresees AI driving the next wave of transformation in restaurants, not through flashy robotics, but by enhancing operational systems. AI will initially improve inventory accuracy, staff scheduling, and dynamic menu pricing, creating a strong foundation for more advanced innovations like voice AI and predictive kitchen systems. The key to long-term success will be thoughtful integration of AI to enhance core operations rather than simply chasing cutting-edge tech.

Enduring Changes in Food & Beverage

Farin notes that certain adaptations from recent years will likely persist, including digital ordering, delivery dominance, contactless payments, sustainability focus, labor-saving automation, hybrid dining models, and premium or experiential offerings.

Jackman emphasizes that labeling and packaging now require greater precision and legal oversight than ever, reflecting increased regulatory scrutiny.

Consumer Expectations in 2025

Huh predicts that diners will increasingly seek value, convenience, transparency, and technology-driven experiences. According to Square’s Future of Restaurants report, 74% of consumers accept automation during labor shortages, while 69% value personalized loyalty programs and exclusive discounts. Additionally, 59% of customers abandon restaurants with complicated ordering systems, highlighting the importance of simplicity. The adoption of self-service kiosks rose from 15% to 64%, reflecting this shift toward streamlined service.

Farin identifies key consumer priorities: health and wellness, sustainability and transparency, digital convenience, affordable quality, unique and authentic experiences, ethical practices, and innovation and novelty. Modern diners are drawn to plant-based options, globally inspired flavors, lab-grown meat, and tech-enhanced products, all while expecting clear communication on sourcing, packaging, and ethical practices.

Supply Chain Management Advice

Jackman advises businesses to strengthen agreements with suppliers, distributors, and retailers, clearly defining risk allocation and indemnity provisions. Contracts should include upstream accountability for product claims, labeling violations, and insurance coverage, ensuring compliance and quick dispute resolution.

Huh underscores the importance of tracking critical business metrics, especially prime costs and bottom-line profit. Prime costs, covering labor and cost of goods sold, should ideally stay under 65%, with top performers achieving closer to 50%. Modern POS systems like Square help monitor sales trends, kitchen performance, inventory, and staffing, allowing operators to make data-driven decisions in real time, even when off-site.

Impact of Global Conflicts

Farin explains that global conflicts, such as the Russia-Ukraine war, continue to disrupt the food and beverage industry. Supply chain interruptions, price volatility, and ingredient shortages are ongoing challenges. For instance, Ukraine’s wheat, corn, and sunflower oil exports were severely affected, leading to rising grain and oil prices, which impact bread, snacks, and cooking oils. Cocoa supply was also disrupted, with Ghana and Ivory Coast facing crop losses, causing chocolate prices to surge.

To adapt, companies are diversifying sourcing, reformulating products, and investing in resilient supply chains. Transparency is critical to meet consumer expectations for health, sustainability, and affordability, while balancing economic pressures with “treat culture” indulgences.

Regulatory Challenges in Southern California

Jackman points out that consumer class actions are on the rise, targeting labeling claims such as “natural,” “clean,” or health-related marketing. Companies are responding by auditing labels, substantiating claims scientifically, training staff, and monitoring legal trends to reduce risk.

Labor Shortages and Employee Retention

Huh observes that while hiring is improving, retaining staff remains challenging. Successful operators use technology to enhance work-life balance, including AI scheduling, reliable payroll systems, and mobile access to shift management. These solutions increase employee satisfaction, creating workplaces where staff are more likely to stay long-term.

Trends in the Restaurant Space

Farin highlights emerging trends, such as hyper-local sourcing, plant-based menus, tech-driven experiences, global fusion flavors, smaller shareable plates, ghost kitchens, wellness-focused menus, and nostalgia-inspired dishes.

Huh warns that one of the biggest mistakes companies make is operating on intuition rather than data. Leveraging real-time analytics for sales, kitchen performance, and staff management is crucial to making informed, timely decisions.

Food Safety and Labeling

Jackman notes that food safety concerns, particularly heavy metals, are increasingly critical. Global supply chain disruptions force companies to use alternative suppliers, which can increase contamination risks. Businesses are responding by enhancing testing, tightening oversight, and improving transparency.

Farin explains that food labeling has evolved significantly over the past five years, with changes in serving sizes, calorie display, added sugars, mandatory nutrients, and fat focus. Additionally, businesses face higher legal scrutiny for health and environmental claims, making precision and compliance more important than ever.

Advice for New Restaurateurs

Huh advises that launching a successful restaurant today requires combining culinary passion with data-driven decision-making. Platforms like Square provide real-time insights into costs, labor, and menu performance, enabling operators to make proactive adjustments. The most successful restaurants are those that integrate great food and hospitality with smart business intelligence.

For questions or comments write to contactus@bostonbrandmedia.com

Source: latimes‍