Breaking News

December Food Cost Dip Offers Short-Term Margin Relief for Restaurants

• Wholesale food prices showed a modest overall easing in late 2025, with the Producer Price Index for All Foods dipping 0.5% below year-ago levels in December after fluctuating through the year. Despite this decline offering some relief to operators, average food costs remain significantly above pre-pandemic levels, and the degree of pricing relief varies widely by commodity. SOURCE | NATION’S RESTAURANT NEWS

Payments Platform Bridgepay Confirms Ransomware Attack Behind Outage

• BridgePay confirmed a ransomware attack behind a payments outage, illustrating how quickly restaurants can be forced into cash-only mode when a processor goes down.
• The incident highlights downtime risk across POS integrations and payment gateways: lost sales, slower service, and frustrated guests even when staff executes perfectly. The operator lesson is blunt: cybersecurity and redundancy are now continuity costs, not optional IT projects. SOURCE | BLEEPINGCOMPUTER

Industry

2026 Sales Rebound Could Lift Profit if Food and Tariff Costs Ease

• Industry forecasts for 2026 suggest a stabilizing (but still fragile) environment after a softer-than-expected 2025, with operators watching labor availability, policy uncertainty, and consumer sentiment.
• The analysis argues that tech investments made over the past few years may start paying back through efficiency and waste reduction. It’s a sober expectations-setter for owners planning budgets, hiring, and menu strategy. SOURCE | NATION’S RESTAURANT NEWS

Rising Food Costs and Weak Traffic Squeeze Restaurant Profit in 2026

• Restaurants face weaker traffic and limited pricing power in 2026 while food costs, especially beef, rise due to tariffs and supply chain disruption, putting pressure on margins and profitability. Consumers are trading down, prioritizing value, smaller portions, high-protein options, and perceived health benefits, forcing operators to compete on cost control, menu mix, and clear value messaging rather than price increases alone. SOURCE | RESTAURANT DIVE

Low and No-Alcohol Drinks Can Lift Beverage Sales This Year

• Healthier, functional beverages are emerging as a major growth area for restaurants, with increasing demand for low- and no-alcohol options, gut-health drinks, and personalized hydration. These preferences are driven largely by Gen Z and Millennial consumers and supported by broader interest in clean ingredients and sustainability. SOURCE | NATIONAL RESTAURANT ASSOCIATION

Regulatory

2026 State Packaging Laws Raise Restaurant Supply Costs and Compliance Risk

• New 2026 state packaging laws will increase compliance and supply costs for restaurants, including bans on certain plastics and polystyrene, PFAS restrictions, higher recycled content standards, and required bag fees in several states.
• These changes are driven by environmental regulations aimed at reducing waste and harmful chemicals. Operators should review packaging suppliers and pricing now to avoid fines, disruptions, and margin pressure in the coming months. SOURCE | PACKAGING DRIVE

New Jersey Utensil Law May Cut Supply Costs Starting August 1

• New Jersey’s new “Skip the Stuff” law will limit when restaurants can provide single-use utensils, which may lower supply and waste costs but requires staff training and order process changes before the Aug. 1 rollout. The move reflects growing pressure to reduce plastic waste, with similar rules already active in other major markets. Operators should update packing procedures, train staff to provide utensils only upon request, and avoid higher-cost single-use alternatives that do not meaningfully reduce waste. SOURCE | NATION’S RESTAURANT NEWS

New State Laws Raise Compliance Costs for Restaurants in 2025

• New state laws in 2025 are increasing compliance and training costs for restaurants, especially around allergen labeling, alcohol to-go, delivery rules, and workplace violence prevention. These changes are driven by stronger consumer demand for food safety transparency, convenience, and safer dining and work environments.
• In the coming months, operators should review menu disclosures, tighten alcohol and delivery compliance processes, and update staff training to avoid penalties while protecting off-premise sales and team retention. SOURCE | NATIONAL RESTAURANT ASSOCIATION

State PFAS Bans Raise Packaging Costs and Compliance Risk for Restaurants

• State bans on intentionally added PFAS in food packaging are raising compliance and sourcing costs, with several laws already active and more taking effect in 2026 and 2027. The shift is driven by state-level efforts to eliminate PFAS from common items like takeout containers, wrappers, and service ware, even as federal rules remain limited.
• Operators should verify supplier certifications, review contracts for liability exposure, and plan for potential packaging changes or price increases to avoid fines and supply disruptions in the near term. SOURCE | JDSUPRA

‘Fear’ And ‘Chaos’ Threaten Employers’ 2026 Immigration Plans

• Heightened immigration enforcement in early 2026 has created significant disruption for employers, with ICE ramping up workplace actions and expanding inspections. Attorneys report increased fear among workers, more aggressive site visits, and expectations of a sharp rise in Form I-9 audits this year.
• New H-1B visa fees and proposed wage-based selection rules are straining hiring plans, pushing some companies to consider offshoring roles or restructuring talent strategies amid ongoing compliance uncertainty. SOURCE | RESTAURANT DIVE

Technology

Rising Card Fees Push Restaurants to Add Surcharges to Protect Profit

• Rising credit card interchange fees are prompting more restaurants to add surcharges or dual pricing, as processing costs have climbed sharply and now rank among the top operating expenses after food and labor.
• Persistent inflation, higher ingredient and wage costs, and continued traffic declines are pressuring margins, while card networks collect record fee revenue, pushing operators to find ways to offset payment costs without raising menu prices. SOURCE | PAYMENTS DIVE

Papa Johns AI Ordering Aims to Boost Sales and Cut Phone Labor

• Papa Johns and Google announced an omnichannel voice-and-text ordering agent built on Gemini, intended to reduce friction in ordering across phone, web, app, kiosks and in-car systems. The operator angle: fewer ordering mistakes, faster throughput, and less labor tied up on routine order-taking. It’s a clear signal that major brands are pushing AI into frontline transactions, raising the competitive bar for convenience. SOURCE | NATION’S RESTAURANT NEWS

AI Restaurant Search App May Redirect Sales in Competitive City Markets

• DoorDash is piloting an AI-powered restaurant discovery app called Zesty that could redirect customer traffic toward restaurants that best match detailed, personalized search prompts, affecting near-term sales in competitive urban markets.
• The app aggregates data from multiple platforms and allows users to search by mood, budget, location, and preferences, increasing the importance of accurate digital profiles and strong positioning. The key driver is rising consumer demand for tailored recommendations and faster decision-making when choosing where to dine. SOURCE | NATION’S RESTAURANT NEWS