​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.

​The recent confirmation that the U.S. is applying sweeping tariffs to imported goods from around the world is adding a new layer of uncertainty to foodservice operations. The National Restaurant Association addressed the potential impacts: “Applying new tariffs at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open,” Michelle Korsmo, CEO of the National Restaurant Association, said in a statement. “The biggest concerns for restaurant operators – from community restaurants to national brands – are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing up prices for consumers.”
As food prices rise, senior living and adult care facilities will face pressure to maintain quality while managing tighter budgets. What practices can help? Rotating menus every few weeks can standardize purchasing and reduce waste. Tracking attendance and monitoring plate waste can also help facilities better forecast ingredient requirements. Are there items you currently serve that are less popular – or come back in excess on residents’ plates?
Fortunately, working with a distributor like US Foods can help you secure lower prices on food and supplies. At the same time, how you manage those items – like using first-in, first-out (FIFO) practices and avoiding overstocking perishable items -- can reduce spoilage. Leaning on seasonal ingredients and cross-utilizing ingredients across meals as much as possible can help too. Hopefully your inventory is filled with items that serve a range of purposes across your menu – as key ingredients in one dish and supporting players that disappear into others.
Finally, does your staff training include instruction on efficient prep, proper storage, and yield-maximizing techniques that reduce waste? Your technology can back you up by helping you streamline your inventory and plan menus in a cost-effective, compliant way. Contact Team Four if you need support.

Talk of potential tariffs has added a layer of uncertainty to economic forecasts lately. So far this year, the federal government has announced tariffs on all imports from Canada, Mexico and China, as well as tariffs on steel and aluminum imports from all countries. Retaliatory tariffs on food and beverage are likely. So to what extent will this impact restaurants and other foodservice businesses?

J.P. Morgan analyst John Ivankoe said recently that tariffs are less of an issue for this sector than they are for other industries. However, he said related inflation could impact consumer staple commodities like avocados and seasonal produce, as well as coffee.  A recent report from the New York accounting firm RBT anticipates some broader challenges to the sector, including higher costs for imported foods and non-food items like furniture and equipment, delayed shipments and shortages, and a potential drop in consumer spending.

You can cushion your business from potential consequences with some planning. Understand where your goods are coming from, which are likely to be most affected by tariffs, and what alternative sources exist. There may be room for you to renegotiate agreements or find a local or domestic supplier. If you raise prices, be transparent – explain the reasons for it and consider using optional surcharges to give guests the ability to skip an expensive ingredient. Review your menu – consider how you can make your most popular and profitable items more sustainable with local ingredients. Have back-up recipe plans so you’re prepared to make changes if new goods or regions are affected. Ramp up your experience factor, including your service and loyalty offers, so guests continue to feel your meals are a good value.

Foodservice operations contain a wide array of equipment and other items that have unpredictable life spans or can become obsolete quickly. Kitchen equipment like fryers and refrigerators can malfunction, HVAC systems may need to be replaced at significant expense, and the rapid progression of technology can require businesses to replace legacy systems that still function but may hinder their competitiveness in the market. Managing such expenses is often a major challenge in an industry with slim margins. To address that, a recent report from the Restaurant Finance Monitor recommends operators avoid turning to lenders and instead take a page from the playbook that condominiums and cooperative associations have been using for years. Specifically, start a depreciation fund with today’s dollars. Assess the condition of key equipment and other expenditures, along with the year when that item will likely need to be replaced and the estimated cost. Account for annual inflation and direct depreciation dollars to it each month so surprise expenses are easier to manage – or at least won’t derail the business. Beyond better expense management, this approach can position a brand to be better prepared to grow. In a separate report, one restaurant consultancy found that public restaurant companies that spent about 10 percent of their revenue on capital expenses (as opposed to about 6 percent) saw revenue growth improvements of nearly 6 percentage points.

Foodservice businesses possess critical ingredients needed to get through crises – namely an ability to manage through chaos and care for people in the process. Still, these businesses have navigated an unprecedented series of crises in recent years. During global emergencies such as the Covid-19 pandemic and localized disasters like the recent Los Angeles fires, restaurants have been forced to respond swiftly – and often with limited means. Following a disaster, more than 40 percent of small businesses are unable to recover and close their doors permanently. Of the businesses that do manage to reopen, an additional 25 percent fail within the first year.
Emergencies disrupt not only operations but also supply chains, staffing, and customer behavior, overwhelming even the most established businesses. In today’s world, where the next emergency could be around the corner, restaurants and other small businesses must plan for the range of emergency scenarios they face, then prepare a robust contingency plan. Doing so may help them spend fewer days out of business, stay in contact with customers, and secure a better insurance settlement following a claim. It may also help put the business in a stronger position to be able to support emergency workers and other businesses recovering from a local disaster.
Start by identifying your potential risks and what minimum functions you need to be able to carry out if a disaster were to occur. What people are needed to support this? Your business insurance should provide risk management guidance to help you identify and protect against your risks – tap into your insurer’s expertise as you fine-tune your plan. The U.S. Chamber of Commerce, Small Business Administration, FEMA, IRS, and National Restaurant Association also offer emergency preparedness tools on their websites. Once you have an updated plan, review and test it at least once a year. Following a disaster or emergency, you can review the effectiveness of your response and adjust your plan accordingly.

The return of employees to office buildings – and the return of business travel to corporate budgets – has been a boon to restaurant catering. A recent study from Dinova and Technomic indicated that between 2023 and 2024, spending on business dining grew 14 percent, outpacing the 4 percent growth in spending on consumer dining during that timeframe. Last summer, the Global Business Travel Association said it expected to see record spending on business travel by the end of 2024 ($1.48 trillion globally, surpassing earlier forecasts). This presents an important opportunity to fill traffic gaps with employee groups and individual business travelers who may be more willing to spend than typical consumers are right now. If you’re operating in a region with a strong corporate presence, have you approached local businesses about your offerings? The Dinova/Technomic report suggests targeting sales teams – they are always looking to reward employees and have the budgets for celebratory food and drink. Beyond that, highlight the conveniences and benefits you offer. Your streamlined ordering and pickup process, delivery options, easy parking, healthy menu options, or private dining room could make your business an easy choice for busy people in need of a meal.

​If your guests seem to be tightening their belts as bills roll in after the holidays, it might feel like offering discounts is an unavoidable path to sustaining traffic. Inflationary challenges are only increasing these pressures. According to Technomic’s David Henkes, restaurant menu prices are now 28 percent higher, on average, than they were in 2020. “When you’ve got higher prices and declining traffic, you see deals,” Henkes said during a session at CREATE: the Event for Emerging Restaurateurs in Nashville in October. But offering discounts can land operators in a challenging cycle where their inevitable menu increases become more visible to guests down the line. There are other approaches to consider before resorting to discounts: Henkes suggests doubling down on limited-time offers and menu innovation to build and maintain guest engagement. LTOs give operators room for experimentation and trial and error, all while making menus more interesting and dynamic. Currently, the presence of craveable, unique LTOs is a key factor consumers consider when deciding where to dine out. So where can you focus your offers? One area ripe for innovation right now is the beverage category, since so many consumers are looking for alternatives to alcohol. You can also tap into the on-trend flavors of the year, like unusual coffee drinks and Haitian cuisine, according to Datassential. (Need help with your LTOs? Note that US Foods offers a range of prepackaged LTO concepts that include the recipes and marketing materials an operation needs to bring an offer to fruition.)

Returning guests are your business’s shining stars. According to research from Incentivio, loyal guests contribute the largest part of a restaurant’s recurring revenue (10-20 percent). But at a time when every business seems to have a loyalty program, it’s important to look for ways to continuously innovate your approaches to driving repeat visits. Otherwise, it becomes too easy to get lost in the stream of loyalty offers available.
A recent report from Modern Restaurant Management predicts that memberships are Loyalty 2.0 for restaurants – and even fine-dining restaurants will be getting into the mix with bigger-ticket monthly memberships designed to entice guests to come back. Some foodservice brands have already begun offering wine memberships that come with free tastings, dining discounts and wine deliveries. Others are offering membership tiers good for such perks as free delivery, free drinks, priority reservations and birthday bonuses.
Looking at your menu and service model, where could you benefit from offering a membership? Perhaps you could use your morning coffee business to help drive sales of your bakery items – or give a creative chef (and your guests) an opportunity to test a rotating menu of global dishes. Memberships could be a natural winner for your bottom line, generating a guaranteed income stream whether guests visit or not.