Removal of Tariffs on Food and Agricultural Products
National Restaurant Association Statement. President Donald J. Trump signed an Executive Order(Opens in a new window) yesterday removing tariffs on certain food and agricultural products, a move that will help stabilize supply chains and ease cost pressures for restaurants and consumers. National Restaurant Association(Opens in a new window) President & CEO Michelle Korsmo released the following statement on what this action means for restaurant operators and the families they serve. “The National Restaurant Association applauds President Trump’s Executive Order removing tariffs on certain food and agricultural products. This action delivers needed relief for restaurants and their customers at a time when food costs have risen nearly 40% over the past four years. We remain committed to working with the Administration to address remaining tariffs, including country-specific ones, to keep restaurant prices affordable and supply chains strong for businesses and diners alike. “Restaurants depend on a steady, affordable supply of ingredients year-round. While we prioritize U.S. sourcing, many products simply cannot be grown domestically due to seasonal and climate limitations. This action will help keep menus diverse and prices reasonable, which is good for families and great for local businesses. Restaurants are more than places to eat, they’re the cornerstones of our communities and a big part of what keeps our economy moving. “By eliminating tariffs on these goods, the Administration has taken a common-sense step to strengthen the food supply chain, reduce cost pressures, and support menu innovation. We urge the President to consider further actions on alcohol, supplies, and equipment – items which are essential to the hospitality industry. We commend the President for his leadership on this issue. There are a host of significant cost challenges remaining for our industry, from labor and rent to swipe fees and utilities. We look forward to working with policymakers on solutions that promote resilience and keep our doors open to serve America”…
The 4 Shifts Every Restaurant Should Prepare for Now
Turning industry trends into action for long-term growth. The foodservice industry has always thrived on change, but today’s operating environment is different. The speed, scale, and complexity of shifts in consumer behavior, technology, and workforce expectations mean that what worked yesterday may not work tomorrow. With Coca-Cola beverages poured in four out of five restaurants in the U.S., The Coca-Cola Company has a unique vantage point into how consumer preference and operator realities intersect. For decades, we’ve partnered side by side with restaurants of every size to understand what drives guest satisfaction and long-term growth — insights that continue to inform how we help the industry move forward. We at The Coca-Cola Company recently partnered with Accenture to identify the powerful forces already reshaping our industry. Together, they represent not just challenges to adapt to, but opportunities to grow. Those forces are Value Redefined, The Instant Influence Era, The Great Reconnection, and Tech Resetting the Grind. Here’s what they mean for you, and how to prepare now.
- Value Redefined: Competing on Meaning, Not Just Price
More than half of consumers (52%) say they’re clearer than ever on the value they expect, and cost isn’t at the top of the list. For Gen Z, price ranks behind quality, convenience, and portion size. This marks a fundamental shift from “pay less” to “get more of what matters.” Action for the industry: Reassess how you deliver value. Quality ingredients, portion satisfaction, and service speed all matter more in perception than price point alone. Make your value story visible on menus, in-store signage, and digital channels. Remember: If guests don’t see it, they can’t value it.
- The Instant Influence Era: Relevance at the Speed of Scroll
In 2025, 74% of consumers say social media influences where they eat. This is up from 50% just a few years ago. Generative AI is also emerging as a discovery tool, helping guests find specific menu items or experiences in real time. The combination raises the stakes for being present in the right moments with engaging, contextual content…
Bielat Santore & Company – Restaurant Industry Alert
NEW FEATURE – TIP OF THE MONTH
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UNDERSTANDING THE REAL VALUE OF YOUR RESTAURANT BUSINESS
Valuing a restaurant isn’t just about slapping a price tag on your equipment or real estate—it’s about capturing the full picture of your operation’s earning potential, market position, and assets. Restaurants are unique because they’re heavily influenced by location, customer loyalty, operational efficiency, and even seasonal trends. The “real value” often emerges from a blend of financial data, industry benchmarks, and qualitative factors like brand strength or lease terms…
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Safeguarding Restaurants from Emerging Cyber Risks
How to reap the rewards of digital innovation while protecting against the operational and financial disruptions. Technology is no longer an add-on to restaurant operations — it’s the foundation. From connected kitchen sensors to digital ordering systems and contactless payment solutions, these innovations streamline workflows, improve safety, and deliver faster, more personalized service. But as a restaurant’s digital footprint expands, so do its exposures. Every new connected system adds another potential entry point for cybercriminals or operational failures. Unfortunately, many operators still view technology as a back-office issue rather than a critical business function that affects every area of their operation. The reality is that managing restaurant technology is not just an IT responsibility — it’s an operational imperative. A single system outage or cyberattack can trigger a domino effect of business interruption, reputational damage, and financial loss that even comprehensive insurance may not fully cover. The modern restaurant’s digital ecosystem has evolved far beyond traditional point-of-sale (POS) systems, which are now used by 97% of restaurants. Today’s technology-driven operations include:
- Digital ordering platforms such as kiosks, mobile apps, and QR code menus.
- Smart kitchen devices that monitor food safety and equipment performance.
- Integrated data systems that manage loyalty programs, scheduling, and security surveillance.
While each innovation enhances operations, it also introduces new vulnerabilities:
- Mobile ordering platforms expand customer convenience, but third-party app breaches can expose customer data outside the restaurant’s control.
- Smart kitchen alerts help maintain food safety, but ignored or malfunctioning sensors can lead to costly liability claims.
- Surveillance systems can provide valuable evidence, but unaddressed footage showing unsafe conditions can increase legal exposure.
- Loyalty programs deepen customer engagement, yet they store personal information that’s a prime target for cybercriminals.
With so much sensitive data circulating through interconnected systems, restaurants are increasingly targeted by hackers seeking quick financial gain. Ransomware attacks that lock down business systems and demand payment for restoration are becoming more frequent — and more expensive. The average cost of a cyberattack now exceeds $3.3 million, encompassing ransom payments, recovery expenses, and reputational harm…
Bridging the Farm-to-Table Expectations
With supply chain realities. For decades, “farm-to-table” has signified freshness, sustainability, and authenticity. Diners expect menus that reflect local farms, seasonal harvests, and thoughtful sourcing. Yet in 2025, delivering on this promise has become increasingly complex. Global inflation, rising transportation costs, and climate-induced volatility are straining supply chains. Restaurants that once relied on nearby farmers now face fluctuating availability, skyrocketing prices, and unpredictable harvests. The gap between consumer expectations and operational reality is wider than ever. In response, operators around the world are innovating, not by abandoning local sourcing, but by rethinking what it truly means in a globalized, high-cost environment. Rising food and labor costs have forced restaurants to confront a difficult question: is local sourcing still worth the added complexity? Unpredictable availability, higher prices, and limited supply can make sourcing from nearby farms more challenging. Fresh vegetables, fruits, and proteins from local producers often cost more than standard wholesale options. Yet, abandoning local and seasonal sourcing risks eroding a restaurant’s brand identity and guest trust. Many operators are now finding creative ways to protect their margins while staying true to their sourcing values. This shift requires redefining “local” — not as a fixed geographic radius, but as a broader commitment to quality, transparency, and relationship-driven supply chains. “Local” doesn’t have to mean hyperlocal. Urban operators often partner with regional cooperatives or aggregators that source from farms within a wider geographic area. By consolidating deliveries from multiple small farms, restaurants gain access to diverse seasonal ingredients while keeping logistics manageable. Global cities illustrate this approach: in Singapore, seasonal vegetables may arrive from regional farms across Southeast Asia; in Berlin, restaurants receive produce from nearby Poland or the Netherlands. Transparency and traceability remain critical: diners are satisfied knowing that ingredients are responsibly sourced, even if they come from hundreds of miles away…
How In-Store Media Can Buffer QSRs Against Tariff Pressures
The retail playbook helping QSRs stabilize margins amid volatile food costs. Wholesale food prices sit 36 percent above pre-pandemic levels, with tariffs shouldering much of the blame. For QSR operators working with profit margins between 6-9 percent, this spike leaves almost no room for error. Every dollar added to food costs comes straight out of the bottom line. The pressure is uneven and unpredictable. National Restaurant Association research reported that beef and veal costs jumped 21.1% year-over-year, while eggs dropped 33.2 percent. Poultry rose 8.9 percent while butter fell 22.7 percent. This volatility makes planning nearly impossible, and most industries have more cushion to absorb it. Retailers sell ad space. CPG brands lean on diversified product lines. QSRs don’t have those buffers. The usual fixes only go so far. Operators have already trimmed labor, renegotiated supplier contracts, and adjusted portions. But there’s a hard floor. Cut too much, and food quality suffers. Raise prices too high, and frequency drops—45 percent of consumers are already visiting restaurants less often than last year. What QSRs need is revenue that isn’t tied to commodity prices. Retailers facing the same tariff pressure have found an answer: selling advertising on their digital menu boards, kiosks, and mobile apps. These media placements generate income without adding operational complexity or raising menu prices. Walmart’s recent earnings call revealed how the retailer is handling tariff pressure. The company absorbed some costs and raised prices selectively on about 10 percent of imported goods. But the more telling detail was how advertising revenue helped offset margin compression from both tariffs and increased operational costs. While Walmart’s stock dipped on missed earnings targets, the company continues gaining market share across all income groups. Retailers figured out years ago that media revenue stabilizes earnings when product margins get squeezed. Walmart, Target, and Amazon now run advertising businesses that turn their stores and websites into profitable media channels. When tariffs hit and merchandise margins shrink, ad revenue stays consistent. The model works because retailers control access to shoppers who are already in buying mode.
Was 2025 the Year of More Connected Dining?
Shared plates, better restaurant tech, and experiences brought people together. In 2025, dining had a real focus on connection, from shared plates and communal tables to streamlined restaurant technology that helps staff better communicate with guests and enhances the overall hospitality experience. While restaurants adopted tools to work smarter with integrations that connect back of house to the front, diners were setting alerts to score seatings and showed up for newly preferred earlier reservations at in-demand hotspots across the U.S., as highlighted in the new 2025 Resy Retrospective. The restaurant reservation platform — from parent company American Express — took a peek behind the curtain to analyze consumer data and pinpoint some of the top shifts in dining trends, plus made some early predictions for what’s heating up in 2026. Resy defines this as “the person who takes the reins on ordering for the group” and knows the nuances of both the restaurant and their group, from must-try dishes to dietary restrictions. Resy found that 72% of its diners like to try new restaurants with a “table captain” in tow, and 60% said it improves the experience. “The simple answer for the rise of share plates is that younger diners — typically more open to variety and discovery — are shaping how we eat,” New York City restaurateur Steve Wong said in a statement. The co-owner and director of operations at Place des Fêtes, Cafe Mado, Golden Ratio, and Laurel Bakery added that “it comes down to the role restaurants play as a third space.” “Sharing food is one of the best ways to enjoy good company, especially at the kind of thoughtful restaurants this city does so well,” he continued. Some of the top ordered shareable items of the year included crispy maitake mushrooms at Place des Fêtes and pancakes at Golden Diner, both in New York City; Mom’s Lao Sausage at Good Good Culture Club in San Francisco; the Lamb Wrap Situation from Tâm Tâm in Miami; and tahdig at Kismet in Los Angeles…
The Case for Charging for Better Tables
Success depends on clear communication. Every operator knows that certain tables drive outsized demand. Window seats, patios, rooftop perches, and chef’s counter stools create more excitement, more requests, and more negotiation at the host stand than any other part of the floor. Given that reality, charging for premium tables seems like an obvious way to generate incremental revenue and reduce friction. But many operators hesitate because they fear customer pushback or comparisons to airline-style fees. Recent evidence suggests those fears may be overstated. Sky Garden in London has an incredible view and found that almost everyone wanted a window table. Not surprisingly, this caused a lot of stress for the staff and disappointment for many of the guests. They decided to start charging for window tables. What they found that charging for window tables not only drove meaningful advance revenue but also reduced guest disappointment and smoothed the seating flow. Guests who paid for the upgrade were highly satisfied, and the operation saw fewer conflicts around “who gets the good tables.” That real-world example lines up almost perfectly with the results from two new consumer studies I ran with more than 600 US diners. In the first study, participants viewed a mock reservation page offering three options: a Premier View table for a 25-dollar surcharge, a Standard table at no extra cost, and a ‘Surprise Me’ option that assigned the best available table on arrival. The “Surprise Me” option was the most popular, chosen by 45 percent of respondents. Many described it as low risk with a possible upside: they might get the view table for free, and even if they didn’t, nothing felt lost. About 37 percent selected the Premier View table, and Standard seating was the least requested. Overall, the surcharge was rated as moderately fair, acceptable, and understandable, especially among those who chose the premium table…
Did You Know?
How Operators Are Rethinking Pouring Rights to Protect Profitability. Ten years ago, the beverage hierarchy looked unshakable: Coca-Cola and Pepsi dominated the fountain, Dr Pepper trailed at a distant third, and syrup prices crept upward predictably. Today the board has been flipped. Dr Pepper has overtaken Pepsi as the number-two soft drink, and Sprite has climbed into the top three, according to data from Beverage Digest. The fastest-growing beverages now aren’t colas at all, but rather energy drinks, functional waters, low- or no-sugar refreshers, and other “better-for-you” offerings that command higher margins but require different distribution and marketing models. And over the last five years, national-account syrup prices have risen roughly 25 percent, even as overall soda consumption has fallen by nearly four percent over the same period! For operators, that means that the old 10-year, fountain-only, volume-based “set it and forget it” beverage contract no longer makes sense…
Employee Tip
Gratitude That Sticks: How Recognition Builds Retention. Every November, I’m reminded of how often leaders underestimate the power of simple recognition. Over the years, I’ve walked into restaurants, corporate offices, franchise groups, and field teams where the pressure was high, but the gratitude was low. Most people assume turnover climbs because of pay, hours, or workload. And those things matter. But when I sit with teams and really listen, a quieter pattern shows up again and again. People stay where they feel seen. People leave where they feel invisible.
