The restaurant industry is facing “softer demand,” prompting 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. Amidst these competitive pressures, a new report highlights chicken and beverages as the two most attractive segments for investment and growth.
TL;DR
- Bank of America highlights favorable protein economics in the chicken restaurant sector.
- Chicken offers menu versatility and premium positioning over beef for restaurants.
- The protein-enhanced snack market is projected to exceed $100 billion by 2030.
- Beverages, particularly Starbucks, also attract robust investor interest in the restaurant industry.
BofA Securities, present at the conference and having met with franchisees and executives from covered companies, found one particular theme to be highly impressive: “The chicken segment benefits from favorable protein economics.”
Analysts Sara Senatore and Isaiah Austin also pointed out “menu versatility” for chicken, suitable for both quick-service restaurants (QSR) and fast casual dining. Restaurants are “leveraging chicken’s premium positioning relative to beef,”, a category experiencing persistent price fluctuations and increased operational expenses. Franchisees, along with current and past executives, informed the bank in Las Vegas that chicken's food expenses have been reasonable.
Industry insiders and executives also told BofA the “broad demographic reach” of chicken is driving brand expansion and new menu offerings. Chain operators are leaning into both value and quality messaging, especially as consumers respond well to combo deals, limited-time offers, and customizable meals. Chicken can provide a platform for culinary creativity while keeping food costs in check, the bank argued—a key advantage as the restaurant sector continues to adapt to the post-pandemic landscape.
A similar transformation is underway in the packaged food section. Prominent companies such as Kellanova (previously a division of Kellogg’s) and PepsiCo have been ramping up their investments in protein-enhanced snacks, leveraging the growing interest from health-conscious Gen Z individuals and others using medications like Ozempic who aim to preserve muscle during weight reduction. Kellanova has launched Pop-Tarts Protein, featuring pastries that offer 10 grams of protein per serving in familiar flavors, intending to meet consumers' needs for both enjoyment and health benefits.
PepsiCo, too, has teased upcoming launches such as protein-packed Doritos, while Starbucks and Kroger have rolled out high-protein lattes and French toast sticks, respectively. With the fortified-protein product segment expected to grow from $67 billion in 2023 to more than $100 billion by 2030, there’s a consensus among industry leaders that “it’s going to keep coming.”
A survey conducted in July by The International Food Information Council revealed that 70% of Americans are currently looking to increase their protein intake, a rise from 59% three years ago. However, some dietitians say individuals are consuming more protein than they actually require during this dietary trend, and certain research indicates that protein powders may contain toxic heavy metals.
Senatore and Austin noted beverages were on investors’ mind in Las Vegas, too, especially Starbucks.
The landscape is defined by value and experience
Meanwhile, BofA noted the beverage category continues to attract robust investor interest. This growth is largely supercharged by the evolving preferences of younger consumers. While rapidly expanding concepts like Dutch Bros and others are effectively making inroads, operators acknowledged the market remains distinct enough to support “more coffee-forward concepts” like Starbucks, which appeal to a different customer base with a unique product mix and operation style.
The positive forecast for chicken and drinks emerges while the broader sector struggles to stimulate demand amidst difficult conditions. As demand weakens, businesses throughout the industry are concentrating on customer worth and satisfaction.
Within the quick-service restaurant sector, businesses are increasingly relying on value-driven strategies, employing bundled meals and temporary promotions to attract customers who are more mindful of prices. Meanwhile, fast-casual eateries are responding by highlighting superior product quality, improved online services, and personalized options.
In response to a perceived loss of hospitality focus during the immediate post-COVID period, casual dining establishments are now prioritizing service excellence, atmosphere, and the creation of memorable dining experiences. Restaurants across various market segments are implementing novel approaches to boost customer traffic during slower periods, such as offering reduced portion sizes and utilizing flexible pricing strategies, like off-peak discounts.
In 2025, the notable aspect isn't merely that protein is a strong seller, but rather its foundational role in both restaurant and retail food strategies. The industry is experiencing clear economic advantages from the protein trend across various areas, including the operational flexibility and menu versatility of chicken establishments, as well as novel introductions of snacks and beverages rich in protein. Both dining establishments and companies producing consumer goods are anticipating sustained high demand for protein, despite inflationary pressures and evolving health concerns affecting consumer choices. “Protein economics” appears poised to be a significant factor, at least until the American public feels they've reached their limit with it.
For this story, Coins2Day used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.