Main Street Monday: Restaurant Operators Prioritize Catering, M&A, and New Unit Growth for 2026 

June 8, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: Restaurant Operators Prioritize Catering, M&A, and New Unit Growth for 2026 

The 10th Restaurant Industry Insiders Conference, hosted by Citizens Bank, was recently held at the Fairmont Miramar Hotel in Santa Monica, California.

A survey of leading multi-unit franchise operators attending the conference provided several notable insights. 

Results showed that 86% of operators increased menu prices by 1.5% to 8% in 2025, while 14% reported price increases exceeding 8%.

Only 14% of respondents reported traffic growth greater than 1.5% in 2025, and 71% projected traffic to remain relatively flat in 2026. 

Operators identified expansion of catering and off-premise capabilities as their top growth priority for 2026, followed by M&A activity, new unit development, and store refreshes. These priorities reflect the industry’s focus on managing near-term challenges while pursuing long-term growth.

In Q4 2025, restaurant brands continued to operate in a soft sales environment, with only 53% of tracked concepts reporting positive same-store sales (SSS).

At the same time, margin pressure persisted, driven by higher labor, food, and occupancy costs.

In response, many brands emphasized menu innovation and bundled offerings designed to improve perceived value while maintaining profitability. Operators also focused on operational initiatives, including technology adoption, labor optimization, and enhancements to the overall guest experience.

Concerns remain about consumer strength and spending resilience amid economic uncertainty, creating potential challenges for restaurant operators in 2026.

  • Chicken Concepts (+0.4%)
    • KFC (+1.0%) reported its second consecutive quarter of positive same-store sales (SSS) growth.
    • Popeyes (-4.9%) reported its fourth consecutive quarter of negative SSS growth.
  • Pizza Concepts (-0.6%)
    • The segment reported slightly negative results overall.
    • Papa John’s (-5.4%) struggled during the quarter.
    • Domino’s (+3.7%) led the segment.
  • Burger Concepts (-2.0%)
    • The segment declined overall.
    • Wendy’s (-11.3%) and Jack in the Box (-6.7%) reported the largest declines.
    • McDonald’s (+6.8%) outperformed all peers in the segment.
  • Coffee and Snack Concepts (+4.8%)
    • The segment extended its streak of positive SSS growth.
    • Starbucks (+4.0%) and Dutch Bros. Coffee (+7.7%) posted the strongest results.
  • Mexican Concepts (+7.0%)
    • Mexican concepts led all QSR segments in Q4 2025.
    • Taco Bell (+7.0%) reported its 22nd consecutive quarter of positive SSS growth.
  • Fast Casual Concepts (-1.1%)
    • The segment experienced a modest pullback and produced mixed results.
    • Cava (+0.5%) posted positive SSS growth for the 15th consecutive quarter.
    • Noodles & Company (+6.6%) and Firehouse Subs (+2.4%) also generated solid gains.
    • Sweetgreen (-11.5%) posted the largest decline and reported its fourth consecutive quarter of negative SSS growth.
    • Wingstop (-5.8%) and Portillo’s (-3.3%) also reported declines.
  • Family Dining (-1.2%)
    • The segment improved modestly, with just over half of tracked concepts reporting positive SSS.
    • First Watch (+3.1%) and IHOP (+0.3%) led the segment.
  • Casual Dining (+0.4%)
    • The segment posted a slight increase in Q4 2025.
    • Chili’s Grill & Bar (+8.7%) continued its strong momentum.
    • LongHorn Steakhouse (+5.9%) delivered strong results.
    • Gen Korean BBQ (-11.7%) reported the largest decline in the segment.
    • Kona Grill (-9.4%) recorded its ninth consecutive quarter of negative SSS growth.
  • Fine Dining (+0.4%)
    • The segment reported a modest increase.
    • Darden Fine Dining (+0.8%) posted the strongest performance within the category.