Morning. Did you hear about the sunflower that was over-excited for summer? 

It wet its plants.

Recent tax wins and tech upgrades can help restaurants put the pedal to the metal for the rest of 2025, and we’re totally along for the ride.  

What’s on tap in this issue:

• New tax math = new spending decisions
• Fast casual’s tech acceleration
• How to prioritize capital expenditures

Industry news

What’s cookin’ in the industry? 

New federal legislation has adjusted depreciation and interest deduction rules, which could influence how operators plan their 2025 capital expenditures. 💵

Equipment purchases get more tax-friendly

The Tax Relief for American Families and Workers Act of 2025 reinstated 100% bonus depreciation on qualifying assets placed in service after January 19, 2025. 

This means operators can deduct the full cost of eligible equipment and improvements in the year they're purchased, rather than spreading deductions over multiple years. 

The legislation covers many hefty restaurant investments:

📱 POS system upgrades
🪑 Interior renovations
🌬️ HVAC system replacements
🚪 Walk-in coolers and refrigeration
🧠 Automation and kitchen robotics

For an industry where pre-tax margins typically range from 3-9%, the timing of these modifications should grab your attention.

Additional changes worth noting:

✨ Section 179 limits increased from $1.16M to $2.5M, covering smaller purchases like furniture, tablets, and kitchen tools for immediate deduction.

💸 Interest deduction adjustments. From 2025-2028, businesses can deduct interest on up to 30% of EBITDA (vs. the previous EBIT calculation). This could affect financing costs for major renovations or new construction.

Tax implications vary significantly based on individual business circumstances. 

Consult with your tax professional to understand how these changes apply to your specific situation and whether accelerating capital purchases makes sense for your operations.

Fast casual's tech acceleration

2025 is shaping up to be the year major chains move from tech testing to deploying it at scale. Here's what's happening:

🥤 Wendy’s is developing the QSR of the future with 74 new “Global Next Gen” locations worldwide (28 in the U.S.), equipped with energy-efficient equipment, optimized kitchens, and digital bells and whistles.

• Their FreshAI® voice-ordering drive-thru assistant is now in 160+ locations with plans to reach 500+ by year-end. The AI system aims to speed up service and reduce order errors, even during peak hours. 

🍔 Shake Shack is spreading like mayo on a hot bun by already opening 34 new locations this year. They’re branching into airports, casinos, suburbs, and brand-new cities like Buffalo, Naples, and Oklahoma City to reach their U.S. goal of 1,500 locations.

• They're testing location-specific digital rewards and app-exclusive offers to drive loyalty and frequency.

🍖 Tony Roma's is attempting a technology-driven revival. With only 10 U.S. locations remaining, the brand is implementing AI-driven site selection, robotic servers, and automated back-of-house operations. 

• The goal is to make operations more efficient, double franchise interest, and reposition Tony Roma’s as a high-tech contender.

Timely tips

💡 Prioritize high-cost, high-impact expenditures

If you've been deferring major equipment replacements or system upgrades, the current tax environment may influence your decision timeline.

🎯 Consider these factors for a smart prioritization approach:

• Start with problem equipment. Use maintenance data to identify assets causing the most downtime or repair costs.

• Evaluate operational software. Tools that reduce administrative time or improve scalability may offer measurable ROI.

• Plan timing carefully. Waiting until late in the year could create installation delays or vendor availability issues.

🛠️ Rolling out a remodel? Replacing major equipment? With ResQ CapEx, you can track timelines, budgets, work orders, and approvals all in one place, while potentially saving up to 20% using ResQ’s network of trades.

Break time

Me sprinting to wrap my CapEx project before year-end

The theme song for the rest of 2025: 🎵 I got my mind on my money, my money on my mind.

- Kareem at ResQ 

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Shameless plug

What does ResQ do?

ResQ is the most trades-friendly facilities management platform that streamlines restaurant R&M operations, while providing value to the trades industry.

Operators can efficiently track assets, create work orders quickly, and choose from a network of quality vendors to work with.

Love free samples? Same here. Schedule a FREE demo to learn more about ResQ.

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