The 2025 Voice of the Retail Industry Survey

The retail industry is undergoing a significant shift, and the data shows that local, community-focused businesses are not just surviving but thriving. In a climate of economic uncertainty, convenience stores, bottle shops, and grocery stores are focusing on smart growth, strategic technology adoption, and enhancing the customer experience. The results of our latest survey point to a resilient industry with a keen eye on the future.

From April 18, 2025 through May 13, 2025, Toast polled 492 retail decision-makers in the United States. Survey respondents consist of retailers with 16 or fewer locations and include a mix of convenience stores, bottle shops, and grocery stores. While some Toast customers are included in this survey, it is a broad view of independent retailers. This is a blind survey, meaning respondents did not know that Toast was fielding the study. Insights from this survey are directional and should not be interpreted as precise. The margin of error is +/- 5%.

Here are the key takeaways from the 2025 Voice of the Retail Industry Survey:

94% of retail operators say the health of their business is in good or excellent shape

The overwhelming majority of CBG (convenience store, bottle shop, and grocery store) operators are feeling good about their businesses, with 94% reporting their business health as "Good" to "Excellent". This optimism is backed by solid numbers: nearly two-thirds of CBGs saw an increase in profits (63%) over the last year. 

32% of retail operators say they hope to expand locations

In the coming year, 32% of CBG operators report that they are "Very Likely" to open a new location. Retailers that offer food service said they were more likely to expand. Food Service is defined as any convenience store, bottle shop, or grocery store that offers made-to-order meals, deli counter, catering, and/or salad/hot bar.

This growth mindset extends to technology as well. When purchasing a new POS, operators are most likely to bundle it with essential tools like payroll software and barcode scanners, signaling a desire for a comprehensive, all-in-one solution from the start.

Retail operators say that marketing is one of their top business challenges

While inflation remains a concern, CBGs face a unique set of challenges. The most difficult aspects of running a CBG are marketing (19%), supplier/vendor management (17%), security (16%), and a tie between inflation and inventory management (15% each). 

Inflation hits grocery stores and bottle shops the hardest, compared to convenience stores

Inflation is top of mind for all CBGs, but grocery stores and bottle shops are feeling the pinch more than convenience stores. Approximately 48% of grocery stores and 41% of bottle shops report that inflation poses a moderate to extreme challenge to their business. In contrast, convenience stores report less severe challenges, with only 27% finding inflation to be moderately or extremely challenging.

Grocery stores report the most significant hiring challenges among CBG operators

Grocery store operators are feeling the squeeze when it comes to hiring talent more than other retail segments. They report the most significant hiring challenges, with 16% citing "Extreme hiring challenges." Despite this, a remarkable 63% plan to increase their staff in the next year. 

74% of retail operators report using a point-of-sale to run their business

CBGs are leaning on technology to stay ahead. The most widely used tech includes foundational tools like POS (74%), accounting software (60%), and barcode scanners (59%). Grocery stores, in particular, have embraced a broad range of tech, showing the highest usage rates for specialized tools such as produce scales (55%) and deli scales (52%). 

Single-location operators are more comfortable with AI  and more eager to use it in the future

AI is a hot topic, but attitudes vary by business size. Single location operators (52%) feel more comfortable using AI compared to multi-unit operators (44%). That trend continues with future use as well, with 43% of single-unit operators responding that they will use AI more in the future compared to 34% from multi-unit operators.

Harnessing guest data proves challenging for bottle shops and grocery stores

A high percentage of bottle shops (53%) and grocery stores (50%) find collecting and analyzing guest data to be a moderate or extreme challenge. This highlights a critical need for business intelligence tools that are powerful enough to compete but simple enough for any operator to use.