U.S. Restaurant Industry Faces ‘Hyper-Competition,’ Average 3-5% Profit Margin Pushing 78% of Owners to Burnout.
Many full-service restaurants face extreme pressure
New research published by the video-first business directory MYTSV.com reveals the U.S. restaurant industry is at a critical inflection point.
Restaurants must use authentic video to prove their quality and justify prices to customers, while also showcasing a healthy culture to attract quality staff.”
DEERFIELD , IL, UNITED STATES, December 17, 2025 /EINPresswire.com/ -- FOR IMMEDIATE RELEASE— Eugene Kolkevich, CEO of MYTSV.com
U.S. Restaurant Industry Faces ‘Hyper-Competition,’ Average 3-5% Profit Margin Pushing 78% of Owners to Burnout, MYTSV.COM Research Finds
New research published by the video-first business directory MYTSV.com reveals the U.S. restaurant industry is at a critical inflection point, warning that razor-thin net profit margins (averaging 3-5% for full-service operations) combined with escalating operational costs are forcing operators to abandon outdated business models or risk failure (Toast POS, 2025; Restroworks, 2025).
The analysis, published in the MYTSV.com blog section, aggregates current financial and operational data to illustrate the core obstacles preventing profitability in 2025. The data highlights that the financial squeeze is directly contributing to a major health crisis within the industry: approximately 78% of hospitality small business owners reported suffering from burnout in the last year, driven by the constant pressure to manage labor, supply chains, and consumer price sensitivity (Bionic Report, 2025).
The difficulty is compounded by two persistent challenges:
Persistent Labor Gaps: Nearly 60% of restaurant operators continue to struggle to fill skilled back-of-house positions, driving up training costs and high turnover rates (Escoffier Global, 2025).
Inflationary Pressure: Food-away-from-home prices are projected to rise another 3.9% in 2025, forcing restaurants to increase menu prices while battling consumers who are increasingly sensitive to cost (ERS USDA, 2025).
MYTSV.com’s findings suggest that simple static listings and text-based job boards are entirely insufficient for survival. In the current environment, a restaurant must actively justify its higher prices and differentiate its workplace culture.
"A 5% profit margin leaves no room for error. The only way to survive the current market is by solving the crisis of trust with consumers and staff,” said Eugene Kolkevich, founder of MYTSV.com. “Restaurants that thrive must operate as 'media companies,' using authentic video to prove the quality of their $30 entrée and to recruit employees by proving their kitchen isn't toxic. They are selling the story of their labor, not just the finished product.”
The research concludes that the industry’s solution lies in adopting video-first communication. Video platforms allow businesses to visually demonstrate the quality, labor, and culture behind their operations, thereby increasing customer's willingness to pay a fair price and attracting career-focused staff who value respect and professionalism over simply the highest advertised wage. This strategic pivot is necessary to restore financial stability and combat owner burnout.
Citations
* (Toast POS, 2025) – Toast POS, "What is the Average Restaurant Profit Margin?"
* (Restroworks, 2025) – Restroworks, "Restaurant Profitability Statistics – Startup Success Rates & Margin Insights."
* (Bionic Report, 2025) – Bionic, Report detailing challenges faced by hospitality business owners.
* (Escoffier Global, 2025) – Escoffier Global, "2025 Culinary Industry Hiring & Retention Trends."
* (ERS USDA, 2025) – Economic Research Service (ERS) USDA, "Food Price Outlook - Summary Findings."
About MYTSV.com
MYTSV.com is a video-first business directory designed to help businesses in high-trust or high-skill industries (such as healthcare, real estate, and hospitality) overcome consumer anxiety and labor shortages. By using authentic short-form video content, MYTSV.com enables businesses to showcase their expertise, process, and culture, building immediate trust with consumers and attracting specialized talent that traditional static listings fail to engage.
Mr Izzatov
MyTSV
+1 630-297-7501
info@mytsv.com
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