Americas
Tipping drops as consumer confidence dips, Square finds
New Square data shows restaurant workers are taking home less as tips decline amid economic uncertainty. The average tip on food and beverage transactions fell from 15.17% in Q1 to 14.99% in Q2 2025, with full‑service restaurant tips dropping to 14.64% and bars falling from 17.36% to 16.96%. Square warned that the trend could reignite labor tensions, as tips made up nearly 23% of restaurant worker income last year. Quick‑service restaurants remain the most resilient, maintaining strong margins and growth despite tighter consumer spending.
Starbucks to close all pickup-only stores by 2026
Starbucks will shut down 80 to 90 of its “Pick Up” locations in 2026, phasing out the mobile‑order‑only store model launched in 2019. CEO Brian Niccol said the concept was “overly transactional and lacking the warmth and human connection that defines our brand.” Some sites will be converted into traditional coffeehouses, while others will close permanently. Starbucks will continue mobile ordering, which accounts for 31% of transactions, with a focus on improving the mobile order and pay experience at “community coffeehouses”.
Asia Pacific
McDonald’s set to double AI investment with India as key tech hub
McDonald’s plans to “double down” on artificial intelligence by 2027, with India set to be a central hub for data governance, engineering and platform architecture, Reuters has reported. The company is already using AI to verify orders at 400 restaurants and aims to expand this to 40,000 outlets globally by 2027. It is also using AI tools to forecast sales, set prices and asset product performance. Executives said that spending will focus on technology and tools rather than headcount.
China invests $350M in Angolan agriculture to boost food security
China has signed $350m in deals with Angola to develop tens of thousands of hectares of farmland for soy and corn, part of a strategy to reduce reliance on US agricultural imports. State-owned SinoHydro secured a 25‑year, tax-free concession on 30,000 hectares for a grain base, with about 60% of the output set to ship directly to China, while conglomerate Citic will invest $250m to expand soybean and corn production to 100,000 hectares over five years. Analysts say the move reflects Beijing’s push for food security and geopolitical influence, while Angola seeks to diversify its oil‑dependent economy.
Europe, Middle East, Africa
UK government to fast-track cafes and bars with planning reforms
Cafes, bars and music venues could soon replace empty shops under government plans to relax licensing and planning rules and revive town centres. The proposals include new “hospitality zones” to speed up outdoor dining, late openings and street events, plus a national licensing framework to replace what ministers called a “patchwork” of local rules. Developers building near existing pubs, clubs or music venues would take on soundproofing responsibility under the “Agent of Change” principle. Business secretary Jonathan Reynolds said the changes would “replace shuttered shops with vibrant places to socialize”, while UKHospitality welcomed the move but urged further cost support.
Mewery wins $3.3M in grants to scale cultivated pork production
Czech startup Mewery has secured €2.9M ($3.3M) in EU and Czech public grants to scale up its co‑cultivation technology, which combines pork and microalgae cells, and launch pilot projects with meat producers. Backed by Horizon Europe’s EIC Accelerator, the funding will boost output higher kg volumes, supporting product testing and regulatory preparation. The investment comes amid a steep decline in private cultivated meat funding, but signals strong public support for biomanufacturing. Mewery says its proprietary process could cut costs below €10/kg and give partners a route to commercial production.
Elly Earls
