Restaurant Report Outlines Sales, Cost Trends Shaping 2026

This article first appeared in The Business Journal. 

IRVINE, Calif. – Restaurant365, an all-in-one restaurant management platform, 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.

Read the full article at The Business Journal.