2026 Outlook: Experts Discuss Restaurant Trends and Challenges, Part Two | Modern Restaurant Management

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.

The biggest challenge for operators will be how to navigate uncertainty in the global trade markets and how decisions made by all branches of the government will impact supply chains and pricing volatility. Brands will lean on relationships with suppliers and distributors to mitigate these issues and have solutions in place to ensure proper levels of inventory at stabilized prices. 

While using technology to streamline operations and cut costs, operators will need to recognize the needs of their guests and create value in their menu. Offering smaller portions, lunch specials and combination menu items that add value will appeal to value minded consumers and families that have less disposable income. Restaurants will turn their focus to engaging with their guests and using social media to connect and communicate their brand increasing their market share and creating loyalty and repeat customers.

– Andy Diamond, President of Angry Crab Shack

Going into 2026, technology will continue to play a major role across the industry, but the conversation is shifting. It’s no longer about having the newest tech or chasing AI for the sake of it, it’s about using the right tools in ways that actually make operations simpler, faster, and more profitable. Digital ordering is now a core part of how guests interact with restaurants, and operators are under pressure to make sure those systems truly support their teams and don’t add unnecessary complexity behind the scenes.

2026 will reward brands that stay disciplined.

Another major challenge we’re all facing is cost. Construction, labor, and occupancy expenses aren’t easing, which means operators have to be much more thoughtful about how and where they grow. We’re seeing a real push toward smaller, more efficient restaurant formats that require less upfront investment but still deliver a strong guest experience. When designed well, these footprints create more flexibility with real estate and open up opportunities that wouldn’t have made sense just a few years ago.

Ultimately, I think 2026 will reward brands that stay disciplined. The operators who win will be the ones who invest in technology with a clear purpose, design restaurants that are built for today’s economics, and keep profitability front and center for both the brand and its franchisees

– Jennifer Durham, SVP Franchising and Development at Potbelly

AI as a true operational partner: AI will bridge the gap between insight and action, surfacing trends and letting teams act on them immediately – superpowering staff without replacing their expertise.

• Heads-up hospitality: Next-gen tools will let teams focus on connecting with guests rather than screens, making technology fade into the background while supporting human interactions.

• Personalization as the new standard: AI assistants will equip staff to anticipate guest preferences and deliver highly tailored service, turning data into actionable, human-centered recommendations.

• Handhelds reaching their stride: Durable, smarter devices will streamline busy shifts, helping servers stay on the floor, provide faster service, and deliver a more personalized guest experience.

– Kelly Esten, CMO of Toast

Hospitality is now woven into nearly every aspect of how we live and experience spaces, with guests seeking hosted experiences that feel unique, special, and authentic. One enduring trend is the use of a localized narrative, this is often expressed through collaborations with local artisans, regionally rooted architectural materials, and food and beverage menus featuring locally grown ingredients. Travelers increasingly want a strong sense of place that resonates on a personal level.

Hospitality is now woven into nearly every aspect of how we live and experience spaces, with guests seeking hosted experiences that feel unique, special, and authentic.

At the same time, people are prioritizing quality across the board, from wellness-focused offerings and ingredients to finishes and furniture that are durable, ergonomically comfortable, and thoughtfully tailored to the experience. Flexibility and adaptability also remain critical, enabling establishments to stay focused on the guest experience and ensure the priority is how guests feel, which ultimately drives repeat visits.

While alcohol consumption is declining, the desire for social connection remains unchanged. People still want to gather with their favorite groups; they are simply seeking more choice and flexibility in what they consume. In recent years, this has aligned with a broader shift toward health and wellness, with guests wanting to feel good, supported, and comfortable in social settings.

As a result, bar and restaurant design must evolve to incorporate health-focused offerings and thoughtful nonalcoholic options that align with the venue’s concept and target demographic. This can take the form of seasonal pop-up menus or rotating, event-driven concepts that add interest and variety. Guests are also spending more time socializing and conversing in these settings, which increasingly supports group-oriented seating arrangements rather than a primary focus on the bar. The lighting, as always, is one of the most important key elements to a well-designed space and this remains true no matter what people are drinking. 

– Krystle Fader, Design Manager/Senior Associate, DyeLot Interiors

Looking ahead to 2026, the restaurant industry will increasingly harness the combination of AI and connected data to make decisions that are not only faster, but smarter. Operators have spent years collecting massive amounts of information from their kitchens—energy use, equipment performance, food safety compliance, and menu performance—but historically, much of that data has been underutilized. By layering AI on top of these data streams, brands will be able to identify patterns, predict issues before they occur, and uncover savings opportunities that would otherwise go unnoticed.

– Jay Fiske, President, Powerhouse Dynamics

Value is the story this year. Whether it’s a great lunch deal, an affordable prix-fixe only concept, or a high-end ‘happy meal,’ operators are finding creative ways to offer value at every level. Even in fine dining, guests want to walk away feeling like it was worth it. Value isn’t just about price, it’s about experience, and the biggest differentiator is still how you make people feel. Service is back, and guests want genuine connection.

– Andrew Freeman, Founder of af&co. and Co-Founder of Carbonate.

AI-Driven Labor Optimization

I recently sat down with the CTO of Jack in the Box and discussed how operators can crack the optimal staffing formula in 2026. Agentic AI is pushing demand forecasting accuracy toward 97 percent at the 15-minute interval level, giving operators the precision they need to deploy labor exactly where it creates value.

With the right amount of staff in place, managers will be able to capitalize on critical shoulder periods and peak moments. The restaurants that master this precision will save four to six hours per week on administrative tasks and capture sales they’re leaving on the table today. They will also create better working conditions that drive retention and reclaim the labor costs that are lost to avoidable attrition.

Generative AI Becomes Part of the Manager’s Everyday Toolkit

In 2026, restaurant managers will adopt generative AI the same way consumers already have — as a natural part of their daily workflow. Just as we ask AI to help plan a vacation or research a purchase, managers will turn to contextualized AI to navigate scheduling dilemmas, coach employees through performance issues or troubleshoot operational challenges mid-shift. As confidence builds in AI that understands the nuances of restaurant operations, we’ll see managers lean on these tools not as a replacement for their judgment, but as a thought partner that helps them make better decisions faster. This augmentation makes the daily work of running a restaurant more manageable.

– Luke Fryer, Founder & CEO of Harri

The most pressing challenge facing restaurants in 2026 is navigating and optimizing the evolving relationship between marketplaces and direct ordering platforms. While marketplaces may offer attractive benefits, brands must carefully evaluate the long-term implications of ceding control over their 1:1 guest relationships. This strategic play to co-opt direct guest relationships can create a dangerous dependency that undermines the very foundation of what makes restaurants successful, which is their direct connection with guests. The question isn’t about rejecting these partnerships but rather understanding how to maintain ownership of direct channels while leveraging marketplace opportunities appropriately. At the same time, we’re seeing a fundamental shift in guest expectations around personalization.

Frictionless dining experiences are now table stakes.

Frictionless dining experiences are now table stakes. What guests truly want is to be in a “known state” every time they interact with a brand – their complete order history captured down to every modifier, intelligent recommendations that resonate with their actual preferences, and seamless reordering. The winning restaurants in 2026 will be those that recognize this moment for what it is: an opportunity to go back to the timeless basics of hospitality but reimagined at scale through technology. In an environment where guests have limited dollars and dining occasions, guests will choose brands that make them feel seen and remembered over those that treat them anonymously, and direct guest relationships will be critical to achieving this.

– Noah Glass, Founder & CEO, Olo

Looking toward 2026, I believe the “buy versus lease” conversation will continue to favor models that preserve cash flow and mobility, especially for growing franchise systems that need to pivot quickly as markets change.

Availability and affordability of good sites will keep driving where and how brands expand. In many markets, redevelopment and reusing existing spaces are creating fresh opportunities, especially as retail continues to shift after the pandemic. With construction costs and financing rates still high, converting second-generation restaurant spaces has become even more attractive. The brands that stay nimble, think creatively, and aren’t afraid to adapt their site strategy will be the ones that continue to grow smart.

We’ll continue to see growth driven by brands that offer lower build-out costs, streamlined operations, and strong digital engagement. Labor availability and automation will both play a major role, influencing how restaurants are designed and staffed. On the franchisee side, multi-unit ownership is increasing, so systems need to appeal to experienced operators who value scalability and operational efficiency. The next generation of franchise growth will come from brands that are both profitable and purpose-driven — those that connect with communities while staying operationally smart.

– Kelly Gray, VP and  co-owner of Hot Head Burritos

At Enliven, we predict that 2026 will be a year where operators push further into emerging trends that fundamentally are shifting the beverage space. The goal is not just to quench thirst; it’s about engagement and functionality. The questions we are hearing in beverage choice are starting to center around: “Can I share this beverage experience with my network?” or “Will it enhance my fitness/sleep/nutrition goals?”

For restaurant operators and property managers, we believe many are already asking the strategic question of not “what are we serving?” but “how does this menu drive incremental value across the entire guest experience?”

The “Dirty Soda” as an Experience Driver: This trend customizes soft drinks with creams, syrups, and purees and is moving from a social media fad to a viable menu category. We believe that more operators at every level are thinking about how to incorporate a curated experience into their menus. For bigger chains, this may be curated a “craft” menu in partnership with multiple beverage suppliers. For smaller chains, this may be creating a more specialized experience like we’ve seen in the craft cocktail space.

Functional Fuel: Protein Focus: The line between “meal” and “beverage” is dissolving as consumers demand high-performance hydration. We are seeing a massive surge in clear protein waters and collagen-infused beverage offerings. By offering drinks with added protein or other functional benefits, operators transform the beverage menu from an afterthought into a reason to make a visit.

The “Sober-Serious” Revenue Stream: With alcohol consumption on the decline, we expect to see more sophisticated “mocktails” and zero proof options. We have seen mood-enhancing ingredients (like magnesium) being added to beverages to offer an “effect” like relaxation even if opting to not have alcohol. This is critical for capturing the lucrative “third drink” occasion, driving incidence even when someone is choosing to forgo the alcohol.

While these trends are not new for 2026, we believe they will have outsized impact in driving “value-ads” for consumers that will drive them to be repeat customers.

– Tim Harms, CEO, Enliven

Why Gen Z Will Audit Every Restaurant Detail in 2026

In 2026, restaurants will realize that Gen Z’s standards aren’t just different – they’re measurably higher, and unforgiving. Here’s a telling data point: 21 percent of 18-34 year-olds say they won’t return to a venue because of poor restrooms (nearly 2x higher than the general population). This generation has grown up with premium experiences everywhere and they’re holding restaurants to the same standard.

Gen Z isn’t grading on a curve: every touchpoint either meets their expectations, or they’re gone. A thoughtfully designed menu is overlooked if a neglected restroom makes the biggest impact. Premium service is diminished if any guest-facing spaces don’t measure up. The restaurants that win in 2026 will be those who recognize that operational consistency throughout the full house – dining room, restroom, waiting area – isn’t optional.

– Dotti Haynes, Director, Horeca segment at Tork 

Digital-Physical Dining Ecosystems and  Community

Hospitality formats will continue to blur: online to offline, livestream to supper club, subscription to pop-up. The digital footprint of a hospitality brand (engagement, community, content) becomes just as important as the on-site experience.

The demand for community, culture and connection remains strong: guests increasingly want to know the “why” behind their dining, relate to the story and feel part of something.

Sustainability Deepens 

Sustainability is no longer about “should do” but “how well we do it.” Expect elevated consumer expectation around animal welfare (e.g., grass-fed beef), natural grazing systems, transparent supply chains and regenerative agriculture.

At the same time, plant-based and hybrid proteins (pea, wheat, mixed botanical proteins) continue to mature — not just as “me-too” alternatives, but as integrated, flavour-worthy main courses.

– Kate Howell, Les Dames d’Escoffier International 3rd Vice President

Trend 1 – Going beyond LLM’s

Many people and operators are realizing that the last few years have brought a lot of ‘smoke & mirrors’ with AI technology. People spinning up fancy front ends to LLM’s. However, when the technology starts to be implemented reliability, relevance and meaningful impact are lacking. This has been explained away as ‘the technology is new’…’it will get better’. But that is fundamentally untrue unless the architecture has been designed correctly.  Agentic, complex ‘cluster’ based AI solutions will now start to come even more to the fore because they allow a much deeper, richer experience and can be built with outcomes in mind.

Agentic, complex ‘cluster’ based AI solutions will now start to come even more to the fore because they allow a much deeper, richer experience and can be built with outcomes in mind.

Trend 2 – Closing the gap between theory and reality for job training

Now that people are close to emerging from the swamp of ‘trying out new AI technology’ I believe they will emerge with the same view they had pre generative AI; to effect meaningful behavior change and adopt a skills first mentality we have to continue to close the gap between theory and reality. Not how fast can I get someone knowledge. That way of thinking is over. Youtube style ‘’learning’’ does not drive confidence and mastery. We have the technology to move into a world where we can provide the key learning tools for someone to be a true master at all aspects of their job.

Trend 3 – The return of first principle thinking

The best leaders in the hospitality world are cutting through the ever-increasing noise and walking back to first principles to pull out true signals. This may seem basic, but exuberance always leads people away from first principle thinking. I believe you will see more following suit. Starting with the core business challenges or goals, then into what needs to be true to eliminate or achieve them right down to what behaviors do we need our teams to adopt to deliver. Technology is never the start point.

– Greg Hull, MD Retail & Hospitality at Attensi

Low-Alcohol Beverages

Drinks that allow the consumer to socialize without the after-effects of traditional cocktails. Lower-ABV spritzes, fortified wines, and sessionable cocktails offer balance, flavor, and moderation—fitting perfectly with wellness-forward dining habits.

Unique Cuts of Meat & Butcher-Driven Dishes

Curiosity and culinary adventure continues. Cuts they wouldn’t prepare at home,  this isn’t about budget—it’s about offering something distinctive and memorable

A New Era of Farm-to-Table: Quality Over Quantity

The focus has shifted from simply using local produce to celebrating nutrient density and varietal diversity. Why is an ingredient special—why a kalette is different from kale, or why a specific tomato variety tastes better. It’s farm-to-table, version 2.0: smarter, more intentional, and driven by superior quality.

– Stephanie Jaeger, Les Dames d’Escoffier International President, JOEY Restaurant Group Learning And Development Specialist
 

Designing for Connection: Why Experience Is the Future of Quick Service

The definition of value across QSR markets is shifting from price and speed to experience and personalization. Technology will remain the backbone of that change, but not the story itself.

The next era of global growth will belong to brands that can balance consistency at scale with authentic, locally resonant experiences. That means adapting service models, ambiance, and menus to reflect cultural expectations, whether that’s the UK’s demand for frictionless digital service or France’s preference for a more social, sit-down experience. Personalization will go beyond loyalty apps and meal suggestions to include design, sound, and sensory cues that make every location feel relevant to the community it serves.

– Kevin Jones, VP and GM of QSR/Franchise Hospitality at Mood Media

Chicken will make a mean comeback in 2026. I believe we will see more and more restaurants that have really well thought out chicken dishes and I personally would like to see chefs challenge themselves, a good chicken dish is a flex. We will continue to see people shifting away from fast casual and super upscale.

We will continue to see people shifting away from fast casual and super upscale.

We’ll see less white table cloths, less counter service, but more upscale casual restaurants with a smaller, more intimate but still friendly approach to dining. With that we will also see a hybrid dining style. Less tasting menus but more chef curated pre-pay menu options at restaurants.

Ranch will have its big comeback moment. We will begin to see more homemade ranch dips and different variations of ranch coming into dishes and stores.”

– Chef Andres Kaifer, Customshop

Restaurants will continue facing cost pressures, labor shortages, and more cautious consumer spending in 2026. But the bigger challenge is the growing divide between operators who modernize and those who stay tied to outdated systems. In other markets around the world, we are seeing operators leap ahead by building cloud-native, fully integrated platforms from the start. That kind of agility, with real-time intelligence and seamless guest touchpoints, is setting a new global bar. The U.S. industry does not need to replicate that model directly, but we should be learning from it. When operators simplify their tech stacks, move faster, and use AI to make more precise decisions, they are better positioned to manage costs and deliver a stronger guest experience.

– Peter Kellis, Founder and CEO, TRAY

Sensory-driven pizzas are on the rise, with vibrant colors, layered textures, and bold flavor contrasts taking center stage. Unique toppings are gaining traction—pistachios, for example, bring crunch and surprising depth—while premium cheeses are elevating flavor profiles, such as Bacio®, crafted with a kiss of buffalo milk, and known for its luxurious melt and stretch.

We’re also seeing a renewed appreciation for what we call the Art of Pizza. Pizzaiolos are leaning into consumers’ desire for authenticity, blending traditional styles with modern touches. There’s increased emphasis on dough craftsmanship, ingredient quality, and the resurgence of beloved regional styles like the classic Chicago thin crust and Detroit deep dish, along with emerging takes such as Cleveland-style pizza. Overall, pizza makers are doubling down on artistry and premium ingredients to truly elevate their creations.

– Melissa Kellogg, associate director of marketing, Bacio Cheese

• “Experiential food: Hands-on, tactile, and continued table-side presentation.”

• “Hyper-seasonal food with a focus on preservation.”

• “Everything natural: From presentation to ingredients.”

• “Korean and West African cuisine with more spice-driven cooking.”

• “A decrease in meat consumption and an increase in vegetarian dishes.”

• “Juicing.”

• “A greater emphasis on sustainability and other green initiatives.”

• “Kid-friendly menus that are both elevated and kid-friendly.”

• “Nostalgic dishes.”

– Chef Shaun King, the chef de cuisine at Uchi and Uchibā Charlotte

The cautious spending patterns we’re seeing now will likely persist, creating both challenges and opportunities. Brands positioned between casual and fine dining – like Firebirds Wood Fired Grill – will benefit as consumers pull back from higher-end experiences, but still want something elevated. There’s no veto vote on our menu, which gives us a significant advantage when families are making more careful spending decisions.

I also believe maintaining operational excellence while scaling will be critical. We’re continuing to build upon our footprint in established markets where we’ve cultivated brand recognition and have operational efficiencies and adapt smartly to evolving consumer behavior while staying true to our core competencies to achieve sustainable growth. 

– Steve Kislow, CEO, Firebirds Wood Fired Grill

We’re going to see quick-service restaurants focus on food quality, in addition to deals, to drive loyalty and repeat customers. An analysis of customer reviews throughout 2025 found that customers were increasingly questioning the value of fast food menu items due to poor food quality. There were numerous complaints about the item they received looking very different from how it was advertised, poor sandwich assembly, or overcooked/undercooked ingredients. Many reviews compared the value of quick-service restaurants to full-service restaurants, where the quality and service were perceived as better for a similar price point. Ultimately, consumers want food that feels “worth it,” even if they’re getting a deal.

In 2026, we’ll see restaurants strive to deliver quality that matches the hype created by deals and advertising to avoid sending customers packing for good. This could mean menu consolidation and prioritizing customer favorites over a wide variety of options.

– Forrest Leighton, SVP of Marketing at Chatmeter

One of the most important shifts heading into 2026 is the move from simply collecting data to actually using it. Restaurants are collecting more valuable guest insights, but many struggle to apply that information in ways that meaningfully impact the guest experience. The brands that win will be those that can turn data into timely, personalized interactions that feel natural and human. The challenge will be simplifying insights and empowering operators to act quickly, allowing them to create personalized, relevant experiences that build stronger connections with guests at every visit.

– Rhonda Levene, CEO of Ziosk 

AI First Operations

Operators don’t need shiny features and new toys; they’re looking for ROI. The brands that win next year will be the ones using predictive AI to drive tangible improvements in throughput, reduce waste, lift margins and deliver a memorable customer experience.

Automation isn’t a luxury anymore; it’s the backbone of modern QSR operations.

Automation isn’t a luxury anymore; it’s the backbone of modern QSR operations. Decisions driven by gut feelings won’t cut it. Operators should be leaning on their data and making decisions based on all of their available information that tells kitchens exactly what to prep, when to prep it, and how to deliver it profitably. AI should remove friction so people can add meaning. The most successful brands in 2026 will be the ones that use technology to amplify humanity, not diminish it.

 

Time is No Longer Just Money

For decades, speed was the currency of the QSR world (quick is literally in the name, right?). Get guests in and out faster than your competitors, and you win. In 2025, we’ve reached peak speed. In 2026, accuracy and quality are the attraction–speed is a given. Combining an error-free, fast experience requires intelligent systems that guide every step of the process, from order to kitchen to handoff. The next wave of QSR innovation is about delivering the right order, at the right standard, every single time, and doing it without slowing operators down. That’s only possible with real-time data and deeply integrated tech.

– Bruno Lo-Ré, Global F&B Director & CEO Acrelec Americas

Looking ahead to 2026, the industry faces a challenging inflection point as elevated costs, from food and labor to construction and real estate, continue to pressure margins across all segments. In this environment, disciplined growth strategies will separate thriving concepts from those that stumble. The temptation to scale aggressively can be dangerous: it strains unit economics, dilutes operational excellence, and most importantly in our case, risks eroding the authentic local spirit that made these brands special in the first place.

At Authentic Restaurant Brands, we’ve seen firsthand how measured, methodical expansion protects both profitability and brand identity. The brands that will win in 2026 aren’t necessarily those that grow fastest, but those that grow smartest, preserving the community ties and operational discipline that retain customer loyalty while strategically deploying capital where returns are proven and sustainable.

– Alex Macedo, CEO, Authentic Restaurant Brands

2026 Trend: Restaurants Reinvest in Custom Luxury Aesthetics

Since the pandemic, restaurants have shifted from minimal, to-go–focused setups to reinvesting in the dine-in experience, with a stronger emphasis on a custom sense of style. Instead of basic, utilitarian furniture, owners and operators are opting for design-driven elements that differentiate their brand experience. Through our clientele at SouthLoft, we’re seeing a clear jump in detailed tabletop upgrades: more butcher-block tops with consistent plank sizing, and a noticeable rise in higher-end wood species like Walnut and White Oak. Custom shapes are now popular, with many clients requesting rounded corners, 2″, 3″, even 6″ radii, instead of standard 90° corners.

Bases are getting the same treatment. Decorative, solid-wood custom bases are replacing the once-standard plain black metal versions, especially as tariff changes have made formerly low-cost, mass-produced imports nearly as expensive as locally made, higher-quality options. Restaurants are also leaning into premium design features: brass inlays, brass flat-bar details on table edges, Starburst Walnut veneers, and fluted tambour bases. Once found almost exclusively in high-end residential or custom corporate furniture, they are now appearing in mid- to high-end commercial dining rooms.

– Nolen Mares, Director of Operations at SouthLoft.