Margins are tight, consumer expectations are rising, and the winter weather can make traffic less predictable for many foodservice operators. To gain some stability, operators are increasingly turning to retail, beverage, and catering add-ons to unlock new revenue streams. The most successful programs start by extending existing strengths — turning signature sauces, baked goods, or grab-and-go meals into retail items that residents, guests, and staff can purchase. Some operators package house-made soups, salad dressings, or baked goods for take-home sales, creating a profitable “micro-market” inside the operation. HHS, which manages dining for multiple U.S. senior-living communities, is one example — they introduced a c-store-style “market” at one site that offers rotisserie chicken and prepared meal kits for residents to purchase.
Beverage programs are also evolving. Operators are introducing upgraded coffee bars, specialty teas, zero-proof cocktails, and seasonal beverages, often at premium price points. These offerings require minimal labor, have a relatively low ingredient cost, and deliver strong per-ounce margins.
Meanwhile, catering add-ons such as holiday meal boxes, office-lunch packages, or family-style platters can extend kitchen capacity during off-peak times. Some senior living and healthcare operators have begun selling event catering to residents ’families or local organizations, creating a community-facing revenue channel. Every add-on can help balance dips in revenue and help ensure you’re being as efficient as possible with staff and inventory.

Commercial properties are projected to see continued higher energy costs in the coming year. Wholesale electricity prices are expected to climb 8.5 percent over last year, according to a recent report from the U.S. Energy Information Administration, and natural gas spot prices are forecast to rise about 16 percent.
Winter brings steep energy demand for foodservice operations anyway — from higher heating loads to increased strain on walk-in coolers and equipment. Kitchens alone can account for 25-30 percent of total energy consumption, making efficiency critical. It’s a good time to take some precautions to limit unnecessary energy use in the coming months. Focusing on these four actions can help:
• Optimize heating and space control: You can reduce loss by lowering ambient kitchen thermostat settings where safe, zone‐heating only occupied areas, and ensuring insulation and maintaining seals.
• Manage walk-in refrigeration strain: Clean condenser coils, maintain door gaskets, and locate refrigeration away from heat sources to help the cooler operate as efficiently as possible.
• Balance ventilation and airflow: Demand‐based ventilation can cut energy use by more than 5 percent while maintaining air quality, according to a ScienceDirect study.
• Control door traffic and building envelope losses: Use air curtains, limit propping open doors, and schedule deliveries to reduce warm air infiltration and heating system overload.
By combining smarter controls, proactive maintenance and attention to building systems, you can better control utility cost spikes and maintain safe, comfortable kitchens throughout the winter months.

Consumers are eating out, but they’re especially price-sensitive and value-driven right now. Boosting their check totals is often as much about making them feel good about their purchase as about any specific dish on your menu. Using a good-better-best pricing strategy can make your menu into more of a guided choice that communicates value for them and improves margins for you.
You can start by defining a no-frills “good” option that reliably does the job (e.g., an entrée and one side). A“ better” tier could include one or two upgrades that guests value — like an extra side, a beverage, or a popular customization that is priced so the step-up feels like a smart trade. Your“ best” bundle might include your signature item and a couple of premium adds. Most guests will land on the mid-tier option when the premium choice is visible.


To encourage guests to climb this value ladder, it helps to have a clean menu design with clear and concise names, descriptions and tier benefits. Week by week, you can track guest responses and adjust what isn’t working. There are some common pitfalls: price step-ups that are too big and give guests sticker shock, step-ups that are too low and result in smaller margins, less-popular extras included in “best” offerings, and options that slow down preparation because of their complexity. It’s also important to test prior to launch — and to audit margins afterwards so you can make adjustments as needed.

​What the best multi-unit leaders do differently

​Do you have a star general manager who is ready to become a multi-unit leader? High-performing multi-unit leaders succeed if they can shift their mindset from running stores to developing people. But as noted in a report from Modern Restaurant Management, many top general managers stumble when promoted to multi-unit leaders because they cling to hands-on operational tasks. The best leaders instead focus on coaching, mentoring, and building bench strength across locations. 

Training is also a differentiator in helping general managers build the skills to make the leap later on. According to the 2024 Hospitality Training 360 Report, U.S. foodservice companies increased new-manager training hours by 63 percent post-pandemic, recognizing that leadership development drives retention and performance. Mobile learning and continuous feedback are the preferred methods of delivery, according to the report. 

Finally, the most forward-thinking multi-unit leaders balance operational discipline with hospitality. A 2025 Franchising.com roundtable revealed that while automation and AI are shaping the industry, franchisees see talent, culture and guest experience as the true differentiators.  The takeaway: Scalable growth depends less on personal oversight and more on systems, training and cultures that empower others to lead.

The U.S. foodservice industry is expected to reach $1.5 trillion in sales this year, a 4 percent increase compared to 2024, according to the National Restaurant Association. While consumer spending has been resilient, consumers are still looking for a strong value — and they show a willingness to pay for premium ingredients that feel worthwhile. Applying a high‑low strategy — uplifting familiar favorites with small upscale touches — can both satisfy guests and justify the higher menu prices that operators are having to charge to manage current labor and supply costs.
You might execute this approach by starting with a low-cost classic like mac & cheese, then adding a swirl of truffle oil for an upscale touch, mixing in sun-dried tomatoes and pesto for interest and depth, or adding in a Cajun sausage for a savory kick. A basic chicken sandwich can be elevated with tangy kimchi slaw for global appeal — or even with the option of a gourmet cheese, specialty spread, or house-made brioche. Mintel has called this the Rule Rebellion trend — it’s about normalizing indulgence with consumers and encouraging them to enjoy interesting twists on familiar favorites, without concern for conventions.
When you can keep your food cost low while raising perceived value, guests feel treated and you can more easily justify slight increases in price that boost your check averages. On your menu, where is there room to give a basic, low-cost ingredient a premium glow-up?

Insurance isn’t “set it and forget it” — especially in an industry that evolves as quickly as foodservice. A disciplined, annual review of your insurance portfolio helps ensure that your coverage keeps pace with your changing business. In the past several years, many restaurants have expanded their delivery and payment options, sales of to‑go alcohol, and outdoor dining offerings — changes that alter risk profiles and insurance needs.
For instance, a business owner’s policy often combines general liability, property, and business interruption insurance — but it may omit newer exposures like cyber risks or delivery‑related auto liability. Data from Aon and CoverWallet found that 46 percent of operators lack workers ’compensation (legally required in most states), and 87 percent lack cyber liability insurance. This may leave businesses dangerously exposed.
Annual reviews can catch these gaps or at least make you aware of potential vulnerabilities. Being planful can also help you save money in the long run — by ensuring you have appropriate risk management practices in place and by allowing you to bundle certain coverages that would cost more separately. As your menu, services, or technology change, so should your coverage. Renewal season is approaching for many businesses now. Reviewing and updating your policies can prevent denied claims, ensure legal compliance, and protect your bottom line and provide some peace of mind when problems happen.

Vacant real estate holds untapped potential – and foodservice operators are taking note. According to the Commercial Real Estate Development Association, higher office vacancy rates and lower onsite retail shopping post-COVID have opened the door to greater supply for restaurant concepts. These second-generation spaces often come equipped with kitchen hoods, grease traps, refrigeration, restrooms, and permitting – unlike ground-up builds. By repurposing second-generation retail space into restaurants or pop-ups, operators are finding ways to slash costs per square foot, shorten timelines, and tap into ready-made customers. These spaces tend to be especially suitable for fast-casual operators looking to build lean operations that allow them to minimize rent, simplify staffing and open on a shorter timescale. According to We Sell Restaurants, updating a second-generation space can cost between three and six times less than building out a new restaurant, depending on the level of customization and infrastructure needed.
A recent report from Modern Restaurant Management suggests operators considering these spaces evaluate the infrastructure, including its power supply, HVAC capacity, ventilation, grease traps, plumbing, fire suppression and zoning readiness, for example. Assessing these factors up front helps operators not only to negotiate, but also to plan modifications more strategically – whether that’s upgrading the kitchen or reconfiguring seating. Since these spaces have existing permits, move-in delays tend to be minimal – months instead of a year, according to We Sell Restaurants. Further, the placement of these spaces in high-traffic zones gives operators a leg up in drawing foot traffic and promoting their brand. These factors tend to make second-generation spaces a smaller risk – and a more appealing testing ground for newer concepts.

​Competition. Supply chain challenges. Price hikes. Tariff-related uncertainty. Foodservice operators are juggling a wide range of challenges that are affecting consumer spending and the daily management of business. As a result, it’s more important than ever to have a resilient brand. Resilience isn’t just about surviving tough times – it’s about thriving, adapting and maintaining a strong identity that can weather market fluctuations and unforeseen challenges. Here are some actions you can take to fortify your brand. Are there opportunities for you to expand your efforts with any of them to better navigate the times?

First, make sure you have a brand identity that sets you apart. Is it your commitment to sustainability? Your devotion to a specific regional cuisine? Your story should build brand recognition and inspire guest loyalty.

Then, find ways to become more nimble. Are there areas where you could make your business more flexible – and less reliant on any single business stream? Maybe that could involve building your catering business, launching branded products, creating a virtual brand, or using technology to scale up your delivery orders during peak hours in your dining room.

Speaking of technology, are there parts of your operation where you can use tech to drive greater efficiencies? Your technology can help you scrutinize and minimize waste – whether it’s excess inventory, staff time spent on manual processes, or guest preferences that aren’t consistently translated into actionable insights. More data is only better if you ensure at the outset that it is clear, concise and connected to your goals – so you can use it to take positive action.

Take steps to build trust with your people – guests, staff and vendors. Create a memorable, personalized, convenient guest experience. Invest in employee development so your people are not only ready to handle any situation, but that they are also supported in ways that make them productive and motivated. Make sure you trust your suppliers and partners – and their ability to help you maintain quality and manage shortages, price hikes or other disruptions that may occur.

Loyalty programs may be due for an evolution. It’s probably no surprise, considering they have become so widespread. Foodservice operators need to find new and inventive ways to reach guests and earn their loyalty – and that becomes more challenging if brands are using similar loyalty playbooks. Some recent reports and events are hinting at where loyalty is heading.
In a recent episode of the Restaurant Masterminds podcast, host Paul Barron and guest Stacy Kane, a fractional CMO for several fast-casual brands, said Gen Z has less brand loyalty than previous generations. As their spending power grows in the coming years, restaurants may have to rethink traditional, points-based models. Kane said authentic hospitality – like a personalized note on a takeout bag – drives true brand affinity more than transactional rewards. They both critiqued the industry’s lack of meaningful personalization and transparency, citing Starbucks' 2023 rewards devaluation as a cautionary tale. “If you can’t afford the loyalty program, don’t do it,” Barron advised, underscoring the importance of building trust over gimmicks.
So what can operators do? At the Restaurant Leadership Conference in Phoenix this month, one panel discussion, “The More You Know: Fueling the Personal in Personalization,” focused on how brands can create meaningful guest connections. Jane McPherson, senior vice president at Penn Station East Coast Subs, spoke on the panel – and emphasized how collected data and AI insights are enabling the differentiation brands need to enhance loyalty. Specifically, she said foodservice brands can collect and combine information like how often a customer visits, what they order, how they interact with emails or apps, and general demographic details – taking steps to protect their privacy in the process. From there, they can use AI predictive analytics to get unique insights on guests, the occasions they visit, and the opportunities that exist for reaching them. Armed with this information, brands can use generative AI to tailor messaging to individual guest segments.

U.S. foodservice operators are encountering unprecedented opportunities in restaurant franchising, both domestically and internationally, according to recent industry reports. This is especially true for operators who can provide smooth technological integration, offer consumer-focused options, and adapt flexibly to new regions. Forbes reported this month that according to recent figures from the International Franchise Association, the number of franchised units in the U.S. will surpass 821,000 locations in 2025, creating nearly a quarter-million jobs. This expansion is being fueled by technological advancements like AI-driven operations and digital ordering systems, which boost efficiency and customer engagement.
There are also signs that Europe is increasingly becoming a prime destination for U.S. restaurant franchises. Franchising.com reports that the continent boasts a number of high-potential markets with strong economies and urban centers teeming with potential customers. European consumers have already shown a growing appetite for American dining concepts, particularly fast-casual and quick-service models. For example, brands like Five Guys and Shake Shack have successfully established themselves by balancing their core identity with local adaptations. Franchising continues to be a popular expansion strategy across Europe, with both master franchise and area development models commonly used. U.S. brands are able to team up with seasoned local partners who can offer market insights and well-established networks. This collaborative approach helps minimize risk for U.S. operators and supports smoother market entry. Operators just need to be able to adapt culturally to the new regions they enter – by allowing menu customization and aligning with local dining preferences.