Restaurant365, the leading all-in-one restaurant management platform, today announced the findings of its 2026 State of the Restaurant Industry Report. The annual survey, representing 4,000 restaurant locations nationwide, reveals how operators navigated 2025's mix of rising food costs, shifting consumer behavior, fluctuating guest traffic, and broader economic and political uncertainty. It also outlines operators' expectations and priorities for the year ahead.

2025 in Review

Restaurant leaders reported a year defined by inconsistent traffic patterns, inflationary pressure, continued tariff impacts on key ingredients, and changing guest preferences. Sales volume emerged as the top challenge for 30% of respondents, with rising food costs close behind at 28%. This marks a shift from last year's report, when labor and recruiting pressures dominated operator concerns. In the previous survey, 79% of operators expected labor costs to rise, yet 89% ultimately experienced increases. Food cost inflation also exceeded expectations, climbing from 82% anticipated to 91% reported in 2025.

To adapt to these shifts, many restaurants focused on refining inventory processes, strengthening supplier relationships, and investing in operational improvements. With sales and traffic uncertainty top of mind, operators are also doubling down on practices that protect margins and stabilize performance. Workforce development remained an important part of day-to-day operations, with operators looking for ways to improve training, enhance onboarding, and support retention. Sustainability-minded practices, such as better ordering, reduced packaging waste, and smarter sourcing, also gained traction as ways to lower costs and meet guest expectations.

"This industry has always thrived on creativity and perseverance, and we see that spirit strongly reflected in this year's findings," said Restaurant365 CEO and Co-founder Tony Smith. "Our mission is to help operators drive profitability with accounting, inventory, and workforce solutions that leverage AI to make their teams stronger."

Looking to 2026

As restaurants turn their attention to 2026, leaders are preparing for uncertainty and new opportunities. Many expect consumer behavior to continue shifting, with 36% anticipating more takeout and delivery orders, 32% predicting fewer dine-in visits, and 20% expecting greater demand for healthier menus. Another 4% foresee increased interest in eco-friendly choices, while 8% expect a mix of these trends.

Operators are focusing on the areas most likely to drive growth. Sixty percent of respondents identified sales performance as their top priority for 2026, followed by 17% who are prioritizing cost control and efficiency, and 15% who are concentrating on strengthening the guest experience. Expansion plans vary across the industry, with 46% planning to open new locations next year. Among those planning to expand, 22% expect to open one new location, 19% plan to open between two and five, and 5% plan to open six or more.

Finally, developing and supporting staff remains a key focus for many operators. This year, 62% of respondents said their employees receive one to two hours of training each week, with others offering more extensive programs. Cross-training also continues to help teams stay flexible, with 29% reporting that 11% to 25% of their staff are cross-trained and 20% reporting 26% to 50% cross-trained as restaurants looking to continue to provide guests memorable experiences while improving margins and fueling growth.