2026 Outlook: Experts Discuss Restaurant Trends and Challenges, Part One

Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2026. The evolving definition of value, strategic use of automation, and greater emphasis on experiential dining emerged as prominent themes. For the second part, click here and for the third part, click here.

After years of disruption, 2025 has become a year of refinement for restaurants. I’ve seen the industry shift from constant reaction to intentional focus. The operators thriving now are the ones who’ve learned to simplify — trimming excess, clarifying purpose, and building authentic relationships with both guests and teams.

One of the most defining changes I’ve observed is what I call the “value barbell.” Guests today live at two ends of the spectrum: those looking for strong value and those willing to pay more for quality and authenticity. The middle is fading fast. Successful brands now build menus around clear “good, better, best” options — affordable entry items, core favorites, and premium upgrades that justify their price through story and substance. Transparency about quality, sourcing, and portioning has replaced clever marketing as the real differentiator.

Another major trend is the smaller, smarter plate. With wellness consciousness and GLP-1 medications reshaping eating habits, guests want protein-forward meals that satisfy without waste. I’ve adapted menus to feature half portions, high-protein bowls, and snackable items that don’t compromise flavor. The goal is to make each bite count — intense, balanced, and satisfying — so that smaller doesn’t feel like deprivation.

Guests today live at two ends of the spectrum: those looking for strong value and those willing to pay more for quality and authenticity. The middle is fading fast.

Labor remains the industry’s most pressing challenge. But instead of treating staffing as a crisis, I’ve focused on re-engineering work itself. Cross training, clear role definitions, and mobile micro-learning have made smaller teams more capable and confident. When people know what success looks like — and feel appreciated for achieving it — retention follows naturally.

Technology is another area where less is more. Many restaurants chased digital tools during the post-pandemic boom, only to realize they’d built a tangle of disconnected systems. This year, the winning move is integration — consolidating around the POS, connecting loyalty and inventory, and using AI only where it truly helps, such as prep forecasting or inventory alerts. Efficiency, not novelty, drives results.

Delivery and catering also look different in 2025. Guests accept that delivery costs more, but they expect honesty about why. I make sure portions are identical across channels and use clear messaging about third-party fees. Catering, meanwhile, has become a vital growth engine again, especially for offices, schools, and nonprofits. Building long-term relationships with local organizations has turned one-time orders into recurring revenue.

Amid all this change, one truth remains: culture is still the ultimate competitive edge. People, not platforms, define hospitality. Predictable schedules, development opportunities, and genuine recognition turn restaurant work into a career instead of a stopgap. When teams feel proud, guests feel it too.

In 2025, success isn’t about doing more — it’s about doing what matters, better. The brands that will stand strong are those that stay authentic, operate with clarity, and continue to serve not just food, but community. Simplicity, done with purpose, is the new power.

– Sawsan Abublan, CEO of the Mediterranean franchise restaurants Shawarma Press
 

I believe 2026 will be all about bold citrus and tropical pairings. Think guava with spice, sour orange with smoky meats, passionfruit in cocktails. People are craving brightness and freshness- flavors that wake up the senses and bring sunshine to the table, no matter the season. Guests are becoming more curious about food that tells a cultural story- dishes rooted in tradition, but presented with a modern touch. Bars are going to feel more immersive and experiential. Guests don’t just want a drink; they want a story. Whether it’s bartenders finishing a cocktail tableside, infusing drinks with smoke, or using retro glassware that transports you to another era, bar service will lean into performance and personalization.

– Ana Acela Perez, Co-owner of El Puro

Most of the restaurant industry views the category as if each segment—QSR, fast casual, casual, fine dining—is much more different in expectations and attitudes than they really are. Emerging trends impacting the industry, from the growing use of GLP-1s to value pricing, the role of AI in helping people find and choose restaurants, and the competing goals of better-for-you and comfort food, span across all these segments. Our data and work for clients show that the most significant opportunity lies in competing for share of occasions, not just share of category.

Casual and fine dining aren't attracting different people; instead, they’re appealing to different choices from the same people.

The 75 million Americans who rely on fast food as a way of life are distinct, and we published our findings earlier this year. Fine dining is simply out of reach for specific populations. That said, nearly everyone who visits casual dining also eats a lot of fast food, and they extend into fine dining when the occasion calls for it.

Casual and fine dining aren't attracting different people; instead, they’re appealing to different choices from the same people. This means the real competition for Chili's isn’t Applebee's. It's what makes this the place to spend your birthday, toast your promotion, or celebrate a great report card. 

–  Ian Baer, Founder & CEO, AI-driven marketing insights leader Sooth

Food Prep Equipment Trends

With the rising costs of wages and food continuing to tax restaurants, it seems purchasing new equipment would be the last consideration for owners and chefs. However, older equipment like mixers, can add to operating costs for ongoing repairs and service, generating a strain on budgets. Since older mixers lose RPMs over the lifetime of the equipment, they can also negatively affect mixing times and ingredient quality. 

For these reasons, we are seeing some restaurant owners trending toward smart and planned premium mixer purchases versus paying for repeated repairs on older mixers. New, reliable mixers eliminate downtime that could affect the volume of output in a restaurant and maximize labor compared to manually mixing during that downtime. Because a new mixer can do more, faster, it also frees up kitchen staff to focus on more value-added activities than can help generate new menu items and new revenue. 

– Carolyn Bilger, marketing director, Hobart Food Prep Group

We'll continue to see a big emphasis on value as consumers navigate macro pressures that make them think harder about where and why they spend their money. While many brands are competing on price and convenience alone, the winners in 2026 will be operators who understand that value isn't just about affordability but delivering an experience guests can't replicate at home or find anywhere else.

We're also witnessing a fundamental shift in how guests define a special occasion. They're no longer waiting for birthdays or anniversaries to celebrate but are seeking brands that can transform ordinary nights into moments worth gathering for. This has always been core to what we do at Fridays, and it's increasingly what sets brands apart for guests who value experience over convenience. 

The franchise model is evolving rapidly as well, particularly in emerging markets where local operators want global brand credibility paired with regional flexibility. Operators who can strike that balance, maintaining brand integrity while empowering local innovation, will unlock sustainable growth that's harder for company-owned models to match at scale.

 – Ray Blanchette, CEO, TGI Fridays

Keeping great people remains one of the hardest parts of running a restaurant. Replacing a manager can cost more than $2,600, and the impact of turnover shows up everywhere from guest experience to the bottom line. In 2026, the restaurants that pull ahead will be the ones where people see a future for themselves. That means clear career paths, flexible scheduling, and meaningful benefits that reflect real life. The shift is moving away from constantly refilling roles toward creating places where people want to stay.

In 2026, more restaurants will start to recognize that being tech-led isn’t a burden but a necessity in today’s AI-driven world. The old habit of working across separate apps and disconnected workflows is getting harder to justify when the rest of the world is moving toward systems that talk to each other and make work faster and easier. Younger teams, especially Gen Z, expect the ease of having one place for schedules, communication, and updates. At this point, the restaurant industry isn’t chasing a trend, it’s catching up to how people already expect to work.

– Jordan Boesch, CEO at 7shifts 

 The real shift will be in how decisions are made day to day. Instead of reacting to problems after the fact, operators will proactively adjust operations based on insights AI surfaces—whether it’s extending oil life safely, rebalancing labor, anticipating equipment service needs, or dynamically adjusting menus based on sales velocity. This marriage of AI and data won’t require restaurants to reinvent how they run; rather, it will allow them to optimize existing operations in ways that directly save money, improve guest experiences, and build resilience for the future.

– Nicholas (Nick) Bryant, Vice President of Sales, Powerhouse Dynamics

The chains that win in 2026 won’t be the least expensive—they’ll be the most trusted. As the new year approaches, fast-casual brands are facing a new reality: higher costs, tighter margins, and mounting pressure to cut corners. Lion’s Choice, the 58-year-old St. Louis roast beef institution, believes the next wave of industry success will hinge not on cutting costs, but on doubling down on perceived value – quality ingredients and great service served at a fair price.

Regional chains that preserve authenticity and quality will continue to earn a loyal following over national players chasing volume.

Quality will win the long game: As inflation reshapes consumer expectations, guests will increasingly spend on brands they trust to deliver value through quality, not discounts. Operational innovation will outpace menu innovation: The biggest wins will come from efficiency. As brands rethink everything from packaging to prep lines, they can keep costs stable without diluting quality with gimmicks.

Local loyalty will be the next luxury: In a crowded category, regional chains that preserve authenticity and quality will continue to earn a loyal following over national players chasing volume.

– Fred Burmer, CEO of Lion's Choice

While we see consumers continuing to navigate economic pressures in 2026, one thing is clear: the love for sweet treats remains strong. As consumers remain selective with their spending, we’re focused on making it easy for them to enjoy and share our fresh, delicious doughnuts. That’s why we’re expanding our delivery business with key customers in the U.S., growing our capital-light franchise model, enhancing our digital ordering experience, and bringing the Hot Light Theatre experience to new, strategic locations.

In addition, we continue to innovate and pursue exciting collaborations, embracing cultural moments and seasonal occasions to create shareable experiences that keep us relevant with consumers. Our goal is to meet our consumers where they are, making the Krispy Kreme experience both effortless and memorable.

– Josh Charlesworth, CEO, Krispy Kreme

Hospitality: 2025 Trends & Predictions

2025 Trends

Mobility and On-Demand Service: Restaurants, cafes and hotels are embracing mobile point-of-sale (mPOS) systems that allow staff to take orders and process payments anywhere on the floor. This mobility accelerates service, supports contactless payments and enables a more personalized guest experience. mPOS is particularly useful during peak hours or in large venues, as it reduces wait times and allows staff to provide attentive service across all areas of the property.

KDS, Workflow Optimization and Labeling: Kitchen display systems (KDS) are becoming increasingly essential in hospitality operations, from quick-service restaurants to hotels with in-house dining. Integrating POS with KDS helps reduce errors, streamline communication between front-of-house and kitchen staff, and ensure timely order fulfillment. In addition, liner-less label printers are being used to improve accuracy in meal preparation, portion control and catering or room-service orders. Labels can indicate special dietary needs, timestamps, table numbers or delivery instructions, helping staff maintain consistency and meet customer expectations even during peak periods.

AI Integration: Artificial intelligence is transforming hospitality operations by supporting inventory management, demand forecasting and staff scheduling. AI tools can analyze historical order trends, predict peak periods and optimize staffing levels to reduce waste and improve efficiency. Additionally, AI can enhance guest experiences by personalizing recommendations, tracking loyalty rewards and anticipating customer preferences.

2026 Predictions

Full-Service Integration: Hospitality businesses will increasingly adopt interoperable solutions that combine POS, mobile POS, KDS and liner-less label printers. Labeling will extend to all points of food handling, including prep stations, storage and delivery, ensuring consistency across the operation. This connected ecosystem will give managers real-time visibility into operations, streamline communication and improve order accuracy. By leveraging data across these systems, businesses will be able to optimize workflow, reduce errors and make more informed operational decisions.

Smarter Guest Experiences: Guests expect seamless service across multiple touchpoints, such as mobile ordering, self-service kiosks, and traditional POS. Personalization, loyalty program integration, predictive service, and clearly labeled orders will become key differentiators in creating a reliable and efficient dining experience. Operators who can provide frictionless experiences across these channels will strengthen customer satisfaction and loyalty.

Growth in Non-Traditional Spaces: Smaller operators, pop-ups, food trucks, and other non-traditional hospitality locations will adopt the same technologies used in large restaurants and hotels. Labeling will play a critical role in these settings, ensuring that even temporary or mobile setups can maintain accuracy, organization and a professional presentation for all orders. By bringing mobile POS, KDS and labeling solutions to these venues, high-quality, tech-enabled service will become accessible across all hospitality formats, raising the standard for customer expectations in diverse environments.

–  John Choi and Tessa Kohl, product managers at Epson

As AI continues to mature, restaurant brands will shift from experimentation to more measurable transformation in 2026. Operators are moving beyond using AI to automate tasks, such as order management and scheduling, and embracing it as a tool for understanding and anticipating customer needs. AI’s ability to unify data across the brand ecosystem — loyalty programs, social media engagement, and point-of-sale systems — allows restaurants to identify patterns in real time and deliver experiences that feel genuinely personalized. Essentially, it’s time to use AI to predict and shape customer behavior rather than simply react to it. 

It’s time to use AI to predict and shape customer behavior rather than simply react to it. 

Advancements in predictive and generative AI will also redefine how restaurants connect with customers before and after dining experiences. From voice-activated search and smart recommendations to context-based special offers, such as weather or local events, AI will deliver an increasingly responsive guest journey. AI-driven discovery and personalization are becoming industry standards, prompting more restaurants to prioritize data quality and insight-driven decision-making to usher in a new era of guest loyalty and growth.

 – Colleen Clark, Director of Client Services at Further

In 2026, restaurant owners will continue to balance creativity with adaptability. The lines between dining, entertainment, and community experiences will blur even more, as guests seek immersive environments that go beyond a meal. Expect to see operators leaning into experiential design, hyper-local storytelling, and elevated hospitality that builds authentic connections.

Expect to see operators leaning into experiential design, hyper-local storytelling, and elevated hospitality that builds authentic connections.

On the operational side, rising costs and staffing challenges will push teams to streamline systems, invest in staff culture, and find smarter ways to deliver consistency and excellence. The real differentiator will be vision: those who evolve their spaces into cultural hubs that bring people together will thrive.

 – Mikis Troyan and Justin Massei – Co-Founders of Clive Collective

As economic uncertainty rolls into 2026, every marketing dollar is under the microscope. One in five marketers cite limited budgets and resources as their biggest challenge for 2026, and more than half (51 percent) say measurement is now their top investment priority, closely followed by performance media (49 percent) and omnichannel media (39 percent).

Marketers can’t afford to guess anymore, especially as they’re being tasked to hit bigger goals with smaller budgets. The new mandate is clear: prioritize the advertising investments guaranteed to drive incremental outcomes like sales, visits and return on ad spend (iROAS). Investing in performance and orchestrated real-time omnichannel media, coupled with measurement, enables you to optimize in real time to get the most out of every dollar spent. Success in 2026 won’t just be about reporting results; it’ll be about improving them while campaigns are live. 

AI is going to accelerate this shift. We’re already seeing the impact across insights, activation and measurement. From finding overlooked, high-growth audience opportunities to helping marketers predict that next shopping trip or meal visit, AI unlocks insights that empower marketers to be more precise at scale, reaching the right customer at the right moment to maximize impact.

Right now, among marketers already using AI, 39 percent are doing so to optimize campaigns and performance, and I’m betting that number is only going to grow. As AI matures, it will give marketers deeper, real-time insight into what truly moves consumers to drive efficiency and maximize outcomes, while improving the customer experience with personalized and hyper-relevant advertising. In 2026, the winners will be the brands that embrace data, AI and real-time technology to make every campaign smarter as it runs.

 – Michael Della Penna, Chief Strategy Officer at InMarket