U.S. restaurant spending has reached a record $1.1T, locations have climbed to ~762K, and employment has rebounded to 12.37M, yet the Restaurant Performance Index sits at 98.6, signaling ongoing operational strain despite healthy top-line momentum. Operators continue to contend with sustained inflation, input-cost pressure, labor tightness, and the complexity of on-premise vs. off-premise demand. Operators' profit margins are the lowest they have been since 2019 (2.8% profit today vs. 4% in 2019 at full service; 4% vs. 6% at limited service), contributing to a laser focus on adopting solutions that tangibly impact cost savings or generate measurable ROI.
Despite this, and after a 2023 "tech rationalization," adoption continued to improve in 2025, with buyers prioritizing clear, provable ROI, especially around back-of-house efficiency, data/analytics, and business process management. On sizing, public providers frame a U.S. ResTech software TAM of ~$50-$170B, while our bottoms-up work suggests a more conservative $16-$32B domestically (and $40-$100B globally).
M&A has re-accelerated over the LTM, with deal volume rebounding 47% in 2024 to 113 transactions, with disclosed value rising to $4.6B. 2025 is pacing higher at 119 annualized deals with a return of big-ticket activity: Thoma's $2.0B take-private of Olo (July '25), DoorDash's $3.8B acquisition of Deliveroo and $1.2B acquisition of SevenRooms (May '25), Uber/Trendyol Go ($700M), and Pollen Street/OrderYoYo ($162M), among others. Minority financings are more selective, with 55 annualized deals / $3.3B capital raised. However, mature assets continue to shore up balance sheets (e.g., Owner.com $120M, Restaurant365 $175M, Buyers Edge $425M).
Deal flow and buyer interest continue to coalesce around four pillars: (i) Food Data & Intelligence platforms (menu, costing, waste, and supply-chain visibility), (ii) Modern POS and payments, (iii) Guest engagement & loyalty, and (iv) Digital & omnichannel commerce that unifies ordering, operations, and CX. We see this mix as the durable blueprint for value creation into 2026, particularly where platforms aggregate data across FOH/BOH to drive measurable margin lift.
© In the U.S., America’s Growth Capital, LLC dba AGC Partners, member FINRA/SIPC. In Europe, America’s Growth Capital Europe, LLP (Appointed Representative Alternatives St. James, LLP which is authorized and regulated by the Financial Conduct Authority). America’s Growth Capital Europe, LLP is a Limited Liability Partnership incorporated in England and Wales (OC368580). Its registered address is 6th Floor, 9 Appold Street, London EC2A 2AP. The testimonials contained herein may not be representative of the experience of other customers or clients. Testimonials are no guarantee of future performance or success. Deals marked with an “*” are non-AGC deals.
