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With the ever-evolving operational changes that businesses in every sector have had to make over the last few years, a whole new landscape has emerged in the food and beverage sector in terms of tariff, legislative, employment, global conflict and supply chain issues

Even the most seasoned industry pros have found themselves having to get creative to determine solutions in today’s complicated climate. Are shifts in protocols and best practices that have emerged temporary or here to stay? What should restaurants, manufacturers, distributors and vendors be focusing on in terms of new trends and standards?

To address these issues, as well as many other topics, we turned to three leading food and beverage industry experts for their thoughts, insights and assessments regarding the current state and various trends they have been observing.



Sherry Jackman

Partner

Greenberg Glusker LLP


Ming-Tai Huh

Head of Food and Beverage

Square


Arash Farin

CEO

Centerstone Capital

How is food safety impacting the food and beverage industry?

Sherry Jackman: Food safety concerns – especially around heavy metals – are significantly impacting the food and beverage industry. Heavy metals like lead, cadmium and arsenic occur naturally in soil and water, making them difficult to fully eliminate from food ingredients despite strict sourcing and testing protocols. The challenge has grown due to global supply chain disruptions, which have forced companies to rely on alternative or less vetted suppliers. This increases the risk of receiving ingredients with elevated heavy metal levels, potentially exceeding regulatory limits. Such exceedances can trigger recalls, litigation and loss of consumer trust. In response, companies are ramping up testing, tightening supplier oversight and enhancing transparency throughout the supply chain to ensure compliance and protect their brands.

Looking to the future, how do you see the industry evolving over the next five years?

Ming-Tai Huh: The restaurant industry's evolution over the next five years will be powered by AI, but not in the flashy, robots-flipping-burgers way that some predict. Instead, we'll see a more subtle but profound transformation that starts with the basics. AI will first make its mark by enhancing the systems restaurants already use – making inventory predictions more accurate, scheduling more efficient and menu pricing more dynamic. These foundational improvements will pave the way for more visible innovations like voice AI and predictive kitchen systems. The key is that this transformation will be gradual and practical. The winners in 2030 won't necessarily be the restaurants with the most advanced technology but those who thoughtfully integrate AI to support their fundamental mission: serving great food and creating exceptional dining experiences.

What are consumers seeking from food & beverage companies in 2025?

Arash Farin: They seek a number of things: 1) Health and wellness: Consumers prioritize nutritious, functional foods with clean labels; 2) Sustainability and transparency: Eco-conscious choices drive purchases. Consumers want sustainably sourced ingredients, minimal packaging and clear info on carbon footprints; 3) Convenience and digital experience: Seamless online ordering, fast delivery and user-friendly apps are critical; 4) Affordable quality: Economic pressures push consumers toward value-driven purchases, but they still crave premium experiences. Affordable indulgences, like craft coffee or artisanal snacks, are popular; 5) Unique and authentic experiences: Diners seek memorable, shareable moments such as immersive pop-up restaurants or culturally authentic flavors; 6) Ethical practices: Support for brands aligning with social values is growing.

Consumers favor companies championing fair labor, diversity or community initiatives; and 7) Innovation and novelty: Interest in bold flavors, global cuisines (e.g., West African or Filipino fusion) and tech-driven products like lab-grown meat or 3D-printed desserts is rising.

What has changed with food labeling compared to five years ago?

Sherry Jackman: Food labeling has become a major focus of consumer class actions and regulatory scrutiny over the past five years. Companies now face increased legal risk for using terms like “natural,” “clean” and “non-toxic” without clear qualification. Ingredient disclosures are under pressure, especially for synthetics, and controversial compounds. Environmental claims, such as “sustainable” or “eco-friendly,” are also frequently challenged as “greenwashing.” Health claims not backed by strong scientific evidence, misleading pricing tactics like “fake discounts” and deceptive packaging have all become litigation targets. As a result, businesses must approach labeling and packaging with greater precision and legal oversight than ever before.


What’s your advice today for a fledgling restaurateur looking to launch a new dining destination?

Ming-Tai Huh: Starting a new restaurant in 2025 takes more than just a great concept and killer menu. While exceptional food and hospitality are still the heart of any successful restaurant, today’s winners are the ones who combine that passion with smart data practices from day one. Modern platforms like Square give you real-time insights into everything from food costs to labor percentages to menu performance, letting you make smart adjustments before small issues become big problems. The good news? You don't have to be a data scientist – today's tools make it easy to track the metrics that matter most. My advice is to start with the fundamentals – great food, warm service and a clear vision – but make data your constant companion. Because in today’s competitive landscape, the restaurants that thrive are the ones that combine culinary creativity with business intelligence.

Have global conflicts affected the food and beverage industry?

Arash Farin: Yes, global conflicts have significantly impacted the food and beverage industry, particularly in recent years, with effects likely to persist in 2025. These impacts stem from disruptions in supply chains, price volatility and shifts in consumer behavior, driven by conflicts such as the Russia-Ukraine war and tensions in the Middle East. Supply chain disruptions and ingredient shortages are big factors, for example. With the Russia-Ukraine conflict, Ukraine, a major exporter of wheat (4% of global supply), corn (13%) and sunflower oil (over 33%), saw its exports disrupted due to the ongoing war, particularly after the Russia-Ukraine grain agreement lapsed in 2023. This caused shortages and price spikes for grains and oils, critical for products like bread, snacks and cooking oils. The war also disrupted fertilizer supplies, as Russia and Ukraine are key producers.

-Paul Williams


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