Operations

Restaurant operators choosing growth over retrenchment in 2026

Photo: ChatGPT

August 28, 2026

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Despite persistent inflation and labor challenges, restaurant operators are entering the second half of 2026 with a surprisingly durable outlook.

That's according to Toast's 2026 Voice of the Restaurant Industry Survey, which polled 676 U.S. restaurant operators and decision-makers with 16 or fewer locations between April 3 and April 20, according to a press release.

The survey, comprised of both Toast and non-Toast users, found that 91% of operators rate the health of their businesses as good or excellent, matching the high mark recorded in 2025. At the same time, operators are confronting a familiar set of challenges, led by inflation and hiring.

The top three challenges overall were:

Inflation: 27% of operators ranked inflation among their top three concerns, up 7% from 2025.
Hiring: Hiring followed at 22%, up six points year over year. Despite the challenge, nearly half of operators — 49% — plan to increase staffing levels in 2026. Another 48% plan to maintain current staffing levels, while just 3% expect to reduce staff.
Guest foot traffic: 15% cited attracting guest traffic among their top three challenges.
Managing finances: 15% of operators identified managing finances as a top concern.

If labor challenges increase, 51% said they would increase staff efficiency and speed of service, while 49% would increase employee-retention strategies. Another 45% would optimize shift scheduling.

Technology also enters the equation, with 35% of operators saying they would implement technology to reduce staff and guest touchpoints.

Profitability remains the goal with growth as the strategy

Profitability ranked as the top business goal, with 37% of operators identifying it among their top three priorities. But how operators intend to achieve that profitability is changing.

Increasing guest demand ranked second at 30%, while 28% identified improving employee productivity as a goal. The biggest year-over-year increase came from increasing the number of ways restaurants generate revenue, which rose six points to 27%.

That could include adding catering, retail or online ordering to an existing restaurant's revenue mix.

Same-store revenue also increased as a priority, reaching 24%.

AI moves into the mainstream

One of the clearest changes in the survey is the restaurant industry's growing comfort with artificial intelligence. Eighty-seven percent of operators said they feel comfortable using AI, while 85% said they expect to use more AI in the future. More than 8 in 10 also said they believe AI will help them become more efficient at work, trust AI with their business needs and believe AI tools offer good value for the money.

Nearly nine in 10 operators are experimenting with AI in some capacity.