Financial reporting for restaurants has evolved over the years from a compliance necessity into a crucial, strategic differentiator. Whereas investors and stakeholders were previously satisfied with quarterly statements and static spreadsheets, now they want real-time insights, operational transparency and forward-looking metrics that demonstrate company performance while identifying areas for improvements and optimization. For CFOs wishing to keep their restaurant groups one competitive step ahead in the marketplace, the following is a collective outlook of what investors are looking for in 2025, as well as how executive leadership can meet these expectations.
1. Real-Time Financial Visibility
Investors now expect to go beyond monthly or quarterly financial reports, seeking real-time access to financial data that reflects the current state of business performance and operations, such as up-to-date revenue, labor costs, food costs and cash flow. The 2025 SpotOn Restaurant Report stated that 84 percent of restaurant operators say their financial systems need improvement, and fewer than half have access to crucial data they would need to make informed business decisions. Investment into cloud-based accounting platforms and integrated point-of-sale (POS) systems can provide this real-time data access, including dashboards that display up-to-date key performance indicators (KPIs), so that restaurants can see transactions reflected in their accounting systems as they happen in real time.
2. Data-Driven Decision Making
Investors and stakeholders want to know that restaurant groups are making business decisions based on reliable data, which means using analytics to guide decisions such as menu pricing, labor scheduling and marketing spending. CFOs and executive leadership should focus on the following key points of interest to demonstrate a mature data infrastructure:
- Forecasting accuracy: The business can predict demand and adjust accordingly.
- Cost control: Systems are in place to monitor and manage food and labor costs in real time.
- Performance benchmarking: Individual units can be assessed in how they stack up compared to each other and to industry standards.
3. ESG Metrics and Financial Integration
Environmental, Social and Governance (ESG) considerations are now a core component of investor due diligence, as stakeholders want to see how sustainability and social responsibility are measured and reported in tandem with financial performance. Such metrics include waste reduction and recycling initiatives; sustainable sourcing and supply chain transparency; and carbon footprint tracking. By integrating ESG data into financial reporting, restaurant groups can meet investor expectations and position their brand as future-focused and values-driven.
4. Unit-Level Profitability and Scalability
The economic performance of each restaurant location matters to investors, which requires detailed unit-level reporting that includes each location’s revenue, labor and food costs, contribution margins and customer acquisition costs. Standardized reporting across locations will help to evaluate scalability and be sure that every unit’s performance is tracked with transparency and consistency.
5. Risk Management and Scenario Planning
In an era of inflation, labor shortages and supply chain disruptions, investors now expect a robust risk management framework that includes the following:
Scenario models for economic downturns, supply shocks or regulatory changes
- Contingency plans for labor disruptions or natural disasters
- Insurance coverage and business continuity strategies
- By demonstrating efforts toward risk management and business continuity/contingency planning, restaurant groups can build significant trust with their stakeholders.
6. ROI on Technology Investments
Restaurant groups are investing heavily in technology, from kitchen automation to loyalty platforms, and investors want to see the demonstrated return on such investments. This is why the financial reporting should clearly show how any digital transformation and innovation has improved margins or reduced costs, as well as how customer retention or average ticket size has improved. Also importantly, reporting should show how operational efficiencies have been gained through the use of automation and other technologies.
Financial Reporting as a Strategic Asset
In 2025, financial reporting is more than compliance, but also a strategic asset that can drive investor confidence, operational efficiency and long-term growth. Windham Brannon’s Restaurant Practice professionals can help you identify areas in your financial reporting that can be improved to be a standpoint for investor expectations, including data fluency and forward-looking metrics. We help restaurant groups move financial reporting beyond static reporting into a dynamic tool to bolster financial performance and operational efficiencies. For more information, contact your Windham Brannon advisor today, or reach out to Maggie Wise.
