Restaurant365's 2026 Industry Survey Highlights Sales, Costs, and Consumer Trends

Insights from Restaurant365's 2026 Industry Survey

The Restaurant365 platform has released its comprehensive insights from the 2026 State of the Restaurant Industry Report. This annual survey collected responses from 4,000 restaurant locations nationwide, revealing the challenges and expectations that restaurant operators are bracing for in the year ahead.

Overview of 2025

The findings from 2025 illustrate a tumultuous year characterized by fluctuating customer traffic, inflationary pressures, and evolving consumer attitudes towards dining out. A significant 30% of restaurant leaders cited declining sales performance as their foremost challenge, closely followed by the rise in food costs, which impacted 28% of respondents. This represents a noteworthy shift from the previous year, where labor issues were the primary concern for most operators.

While 79% of restaurant operators anticipated labor costs would rise, even more, 89% ultimately experienced these increases. Similarly, food cost inflation took many by surprise, surpassing the expected rate as 91% of operators reported significant hikes, compared to an initial 82% who anticipated them.

To counter these pressures, many restaurants refined their inventory processes, bolstered supplier relationships, and invested in operational enhancements. Recognizing the profound uncertainty regarding sales and customer traffic, operators have concentrated on strategies that shield their profit margins and stabilize operations. For many, workforce development has emerged as a pivotal aspect of their daily operations, focusing on improving training, enhancing onboarding experiences, and retaining staff. Additionally, sustainable practices such as optimized ordering, less packaging waste, and smart sourcing have gained momentum as effective strategies to cut costs and meet consumer expectations.

Tony Smith, CEO and co-founder of Restaurant365, remarked, "This industry has always thrived on creativity and perseverance, and we see that spirit strongly reflected in this year's findings. Our mission is to help operators drive profitability through accounting, inventory, and workforce solutions that leverage AI to enhance team performance."

Looking Ahead to 2026

As the restaurant industry gears up for 2026, leaders are anticipating both uncertainties and new potentials. A significant portion of operators foresees continuer shifts in consumer behavior, expecting 36% to opt for more takeout and delivery options, while 32% predict a decline in dine-in traffic. Additionally, 20% are planning for a heightened demand for healthier menu options, while 4% expect a greater interest in eco-friendly choices.

With a stated focus on driving growth, 60% of survey respondents rated sales performance as their top priority for the coming year, followed by 17% prioritizing cost control and operational efficiency, and 15% emphasizing the enhancement of guest experience. Expansion plans also vary widely across the industry; 46% expressed intentions to open new locations within the next year. Among those, 22% plan to establish one new location, 19% aim to open between two to five, and 5% target six or more new establishments.

Support and development of employees remain crucial for many operators, with 62% of respondents indicating their teams receive between one to two hours of training each week. Cross-training efforts are also prevalent, with 29% of respondents reporting that 11% to 25% of their staff is cross-trained, while 20% claim that 26% to 50% of their employees are equipped with multiple skill sets. This strategy helps restaurants maintain flexibility and is essential in providing diners with memorable experiences while optimizing margins and fostering growth.

About Restaurant365®

Restaurant365 stands as the preeminent back-of-house accounting, inventory, workforce management, and payroll solution designed specifically for the restaurant industry. Its all-in-one management platform simplifies daily operations for restaurant leaders, empowering them to manage food costs, optimize labor, and enhance guest experiences. With its cloud-based architecture and robust integrations, Restaurant365 effectively connects to numerous POS systems, vendors, and financial institutions, delivering accurate and timely reporting that equips managers with comprehensive insights to act upon. Headquartered in Irvine, California, with an additional office in Austin, Texas, Restaurant365 is supported by prominent investors including Bessemer Venture Partners, ICONIQ, KKR, L Catterton, and Serent Capital. More information can be found at restaurant365.com.