Connecting the Dots: How Food Safety, Inflation, and GLP-1s Intersect Now

Restaurant operators face a challenging remainder of 2026 as they navigate continued volatility in food costs and labor expenses as well as the pressures of maintaining value perception among diners. And don’t forget the ongoing food safety concerns and changing dining habits due to GLP-1 use.

Produce and protein pricing will affect operators in addition to elevated labor costs making disciplined operational management increasingly important, explained Mark Wasilefsky, Head of Restaurant and Franchise Finance at TD Bank, who works with a number of franchise operators. 

“At the same time, maintaining a strong value perception is becoming more difficult after several rounds of menu price increases, with many consumers feeling that prices have risen faster than quality. Operators should avoid falling into a value menu ‘death spiral,’ where excessive discounting ultimately weakens the brand's perceived value and long-term positioning.”

The Value and Pricing Equations

Guests may be dining out less frequently, but they are still willing to spend more when they do if they believe they are receiving good value, but increasingly, value is about more than price alone, he added

“Flexibility, customization and portion choice are becoming just as important in shaping guests' perceptions.”

Additionally, the balance between dine-in, digital ordering and third-party delivery continues to evolve, he said, noting that while digital ordering and delivery have become essential components of nearly every restaurant's profit and loss statement, operators that depend too heavily on a single business model, such as third-party delivery or fixed menus, remain more exposed to changing market conditions.

Restaurant operators who rely solely on raising prices are already seeing traffic decline while struggling to maintain a strong value perception. Wasilefsky said. Instead of increasing prices across the entire menu, operators should focus pricing adjustments on higher-margin items such as bundles, bowls and add-ons while leaving other menu options unchanged to avoid shocking customers. 

“Menus should also be designed with flexibility in mind by allowing ingredients, such as greens or proteins, to be swapped without requiring significant retraining for staff. Taco Bell has demonstrated this approach particularly well. Offering multiple portion sizes, including small, medium and large options, can help protect average check sizes while reducing food waste. Operators should also build menus around ingredients that overlap across multiple items to reduce exposure to price volatility.”

On the purchasing side, larger brands may be able to hedge key commodities due to their buying power, while all operators should remain flexible when sourcing seasonal and perishable ingredients, he said. Lastly, waste should be treated as a profit-and-loss line item, with the same level of attention as any other major operating expense.

Adapting to Evolving Habits

Demand for protein-rich menu options continues to grow, particularly among Millennials and Gen Z, who are looking for a healthy variety of protein choice and diners who are using GLP-1 medications, Wasilefsky said.

“Dining out remains an experience, and the growing use of GLP-1 medications does not diminish consumers' desire for that experience. Instead, it creates a new challenge for operators: meeting changing eating habits while still delivering a memorable visit.”

On the menu, operators should emphasize flavorful, high-protein, nutrient-dense offerings while also expanding smaller portion options, including half portions, protein sides and add-ons, he added. 

“Where menus allow, guests should be able to easily customize portion sizes without friction. Operators should also respond to growing interest in cleaner food options when appropriate. While guests may order smaller items instead of full entrées, many are still willing to spend the same amount in exchange for a positive dining experience.”

The importance of customer experience continues to grow, as evidenced by McDonald's recent hiring of a former Raising Cane's executive and the long-standing reputation of Chick-fil-A for exceptional customer service, Wasilefsky said.

“For quick-service and fast-casual restaurants, the experience should be as seamless and convenient as possible by keeping mobile apps and digital ordering platforms current, using customer data to personalize offers and strengthening guests' connection to the brand."

Managing Supply Chain Risks

The recent spike in Cyclospora infection cases is another reminder that fresh produce presents a unique food safety challenge because it is often served raw, unlike proteins, which typically benefit from being cooked during the preparation process, he noted. 

To reduce risk, larger franchise systems should avoid relying on a single distributor for high-risk ingredients such as leafy greens and herbs whenever possible. Supplier diversity is valuable not only for food safety but also for supply chain resilience, as demonstrated during recent tariff-related disruptions affecting coffee, where brands with multiple suppliers were better positioned to manage inventory, Wasilefsky suggested. 

Operators should also comply with all state-mandated delivery handling requirements by rejecting shipments that do not meet temperature or quality standards and requiring documented washing and handling procedures from suppliers. Once produce arrives at the restaurant, teams should follow safe handling practices, including using separate preparation areas for vegetables and proteins, dedicated sinks and stricter washing and holding procedures. While washing does not eliminate Cyclospora, it does reduce overall risk, he added.

“Restaurants should also have pre-written communication plans and product pull procedures in place for suspected contamination, as responding quickly is more important than achieving perfection – it is better to temporarily run out of an item than risk a food safety issue. Finally, operators should build flexibility into their menus, such as leaving lettuce off an item when possible or if requested by the customer. While supplier risk can never be completely eliminated, restaurants can position themselves to detect problems and respond faster than their competitors.”

Prioritizing Human, While Leveraging Tech

It’s no secret that keeping employee turnover low is critical to running a successful restaurant so cross-training staff and creating opportunities for advancement within the organization help employees see a clear path for growth, Wasilefsky said. Standard operating procedures also play an important role by reducing decision fatigue for frontline managers, providing consistency and giving managers clear guidelines to rely on. 

“Employees notice when they are treated differently, so consistency is critical. At the same time, local operators should be given limited flexibility over pricing and menu decisions, as they are often able to respond more quickly than corporate teams.”

Operators should also leverage AI to improve scheduling, food preparation and inventory management, Wasilefsky recommended, adding that operators should regularly review trends in labor costs, food costs and traffic mix to identify opportunities for operational improvements and potential cost savings.