BOSTON — Independent convenience stores, bottle shops, and grocery stores are feeling confident about the future, according to Toast’s 2025 Voice of the Retail Industry Survey. Despite ongoing inflation and hiring challenges, the majority of community-based businesses report strong business health and plans for expansion heading into 2026.
The survey, conducted from April 18 to May 13, polled 492 U.S. retail decision-makers operating 16 locations or fewer. Results highlight a resilient sector that is focused on smart growth, technology adoption, and enhancing the customer experience.
Business Confidence and Expansion
An overwhelming 94% of respondents rated their business health as “Good” or “Excellent,” with nearly two-thirds (63%) reporting year-over-year profit growth. Looking ahead, 32% said they are “very likely” to open new locations in the next year, with food service operators the most bullish on expansion.
Challenges and Inflation Pressures
Retailers cited marketing (19%) as their top business challenge, followed closely by supplier/vendor management (17%) and security (16%). Inflation remains a major hurdle, particularly for grocery stores (48%) and bottle shops (41%), compared to 27% of convenience stores.
Hiring and Workforce Trends
Grocery operators reported the toughest hiring conditions, with 16% facing “extreme” challenges. Nonetheless, 63% of retailers stated that they intend to increase staff over the next year, underscoring their confidence in continued demand.
Technology and AI Adoption
Technology remains central to retail operations, with 74% of respondents using POS systems and more than half relying on accounting software and barcode scanners. Grocery stores reported the highest use of specialized tools, such as produce and deli scales. Attitudes toward artificial intelligence varied by business size: 52% of single-location operators reported being comfortable using AI, compared to 44% of multi-unit operators.
Data and Insights
Collecting and analyzing guest data was cited as a significant challenge, particularly by bottle shops (53%) and grocery stores (50%), highlighting the need for accessible business intelligence tools.
The margin of error for the blind survey is +/- 5%.
