The Shifting Restaurant M&A Landscape
What factors are influencing it, and what are investors looking for? Despite economic volatility and slower traffic, restaurant merger and acquisition (M&A) volume increased 42.9 percent year over year, according to data from Capstone Partners. Modern Restaurant Management (MRM) magazine spoke with experts from Bennett Thrasher, an accounting and advisory firm representing some of the nation’s largest restaurant franchises. Spencer Rees, Partner in Transaction Advisory Services, and Matt Taylor, Partner in Tax Transaction Advisory Services, share their perspectives on the evolving M&A landscape and financial management. The restaurant industry has always been an active area for M&A, attracting both private equity and strategic buyers. Restaurant concepts that combine an intriguing and unique brand while providing high-quality food and beverage offerings, coupled with a solid financial foundation, provide a strong platform for investment. M&A activity remains strong because restaurant businesses have continued to perform well across fiscal years and geographies since the world has normalized following the COVID-19 pandemic. At the same time, the market’s vast size creates a broad pipeline of investment opportunities. Consumer demand remains high, and the industry has continued to grow despite rising ticket prices driven by inflation in food and supply costs, coupled with increased labor rates for quality staff. Investors are looking for businesses with solid fundamentals that they can grow and scale. Restaurant concepts should differentiate themselves through a compelling brand story, a unique market position, and the ability to build lasting connections with guests while consistently delivering high-quality service…
Restaurants and Bars Get Relief on NFL Sunday Ticket Switch
Operators that had been using DirecTV to show non-local games can continue doing so. Restaurants and bars scrambling to change how they screen non-local NFL games this coming season can breathe a sigh of relief. On Friday, DirecTV, which has carried the NFL Sunday Ticket package since 1994, said it had reached a new multi-year agreement with streaming platform EverPass to continue offering it. EverPass acquired the rights to distribute NFL Sunday Ticket to businesses in 2023 and was set to become the sole provider this season. The bottom line for restaurants and bars: They can continue using DirecTV, a satellite service, to show out-of-market Sunday afternoon NFL games for the foreseeable future. It’s a win for operators and industry advocates who had warned that the transition from satellite to streaming would be complicated and costly, potentially interfering with an important source of traffic for many restaurants. “The announcement this morning is a big relief for restaurant operators who have built their business plans on bringing together people around the shared love of a game,” Sean Kennedy, chief advocacy officer for the National Restaurant Association said. “For restaurant operators, who had been scrambling to try to figure out how they were going to plan and afford the investment needed to change providers, this is the best possible outcome.” EverPass was formed in 2023 by the NFL and RedBird Capital Partners, a private-equity firm. That same year, it won the rights to distribute NFL Sunday Ticket commercially…
Bielat Santore & Company – Restaurant Industry Alert
Since 1978, the principals of Bielat Santore & Company, Barry Bielat and Richard Santore, have sold more restaurants and similar type properties in New Jersey than any other real estate company.
MIDDLESEX COUNTY, NJ RESTAURANT-BAR FOR SALE
Land + Building + Liquor License + Business Assets
Rare opportunity to acquire a proven, fully operational hospitality asset combining fee simple real estate, a valuable Middlesex County Plenary Retail Consumption License, and an established restaurant business generating approximately $2.0 million in annual gross revenue. This property provides immediate cash flow while presenting significant upside through operational refinements and revenue optimization. Beyond its current performance, the investment offers compelling long-term value supported by substantial hard-asset collateral, limited-license scarcity, and a highly affluent regional demographic.
- Land: 1.88 acres
- Building: 7,548 square feet
- Seating Capacity: 255
- Parking: 130 spaces
- Asking Price: $3,000,000
Asking price includes land and building (est. $2.1M value), liquor license, and fully-equipped, restaurant business.
National Restaurant Association Calls on Congress
To establish a national regulatory framework for hemp-derived THC beverages. A federal ban on the drinks set to take effect in November would eliminate this $1.6 billion market opportunity for restaurant operators. The National Restaurant Association recently called on Congress to delay a federal ban on hemp-derived THC beverages set to take effect in November, and urged lawmakers to establish a clear regulatory framework that ensures consumer safety and supports restaurant operators serving these products. Low-dose hemp-derived THC beverages are non-alcohol drinks made with small, precise amounts of THC derived from legal hemp. They deliver a mild, relaxed experience that provides an alternative option to customers interested in engaging socially without consuming alcohol. The 2018 Farm Bill legalized hemp containing no more than 0.3% delta-9 THC, enabling the development of this growing product category. In a letter to Congressional leadership, the Association outlined its support for a durable regulatory framework that sets baseline standards including age verification, production and quality assurances, marketing and labeling requirements, dosing disclosures, and operationalizable impairment standards. The framework should also empower state and local governments to tailor market-specific rules, similar to how alcohol beverages are regulated. “Consumers have made it clear that they want hemp-derived THC beverages,” said Sean Kennedy, Chief Advocacy Officer of the National Restaurant Association. “The only question is whether Washington will create a way they can enjoy them safely or if they will allow a thriving market supporting small business owners to disappear because they wouldn’t create a sensible regulatory framework”…
What It Really Takes to Offer Year-Round Outdoor Dining
Forward-thinking. During the summer, outdoor patios will once again become the most sought-after seats at restaurants and bars. Yet despite their popularity, most outdoor dining spaces are still designed as seasonal amenities, activated for a few short months before sitting underutilized for the remainder of the year. Today, this approach is no longer sustainable. Forward-thinking operators are beginning to rethink outdoor dining as a year-round asset rather than a seasonal feature, giving way to new opportunities for revenue, flexibility, and overall guest experience. With more intentional design, through integrated climate solutions, permanent architectural structures, and adaptable furnishings, these areas can operate well beyond the summer months. o unlock the full benefits of year-round outdoor dining, hospitality leaders must stop viewing these zones as temporary extensions of the restaurant. Today’s guests expect a fully realized experience defined by ambience, comfort, and an environment that encourages them to linger. The longer they stay, the more likely they are to order another round, extend the evening, and return. That opportunity shouldn’t disappear when the seasons change. As a result, owners and operators are starting to approach the exterior with the same rigor they apply to their interiors, incorporating thoughtful planning, operational flexibility, and long-term investment. So, what does this look like in practice? It starts with designing environments that feel intentional from day one, rather than retrofitted after the fact. A successful outdoor dining program begins long before any design decisions are made…
Does the Soft Socializing Shift Signal Weekend Woes for Restaurants?
Shifting Models and Perspectives. Restaurant operators have an opportunity to capture Gen Z loyalty and dollars by shifting toward “soft socializing” formats that prioritize affordability, wellness, and no or low alcohol items over loud, alcohol-centric nightlife models, according to The Gen Z Weekend Report from The Harris Poll. Among the findings:
- Sixty-eight percent say going out is not worth the cost, with 62 percent not making weekend plans to avoid financial regret.
- Eighty-five percent of Gen Z have already found lower-cost ways to socialize.
The concern isn’t that Gen Z has stopped wanting to go out, it’s that the traditional restaurant and bar format isn’t clearing the bar, financially or environmentally, for a generation that will define consumer spending for the next two decades, Tim Osiecki, director of thought leadership and trends at The Harris Poll, told Modern Restaurant Management (MRM) magazine. In fact, 71 percent feel they are missing the kinds of in-person experiences older generations had at their age. “Operators who read this as a temporary dip will underinvest in the changes that are actually needed. The ones who read it as a signal will have a significant head start.” Hard socializing (loud, late, alcohol-driven) is the model most restaurants and bars were built around, while soft socializing is quieter, lower cost, lower pressure, and increasingly the format Gen Z is actively seeking, Osiecki explained…
How to Redesign Loyalty Programs for Budget-Conscious Guests
As guests budget more carefully, restaurants and hotels need loyalty programs that feel useful sooner. Loyalty should make the next visit feel worth choosing again. But spending feels different now. Prices remain higher than many guests remember from a few years ago. Even when inflation slows, people still feel the pressure on rent, groceries, travel, and everyday bills. The U.S. Bureau of Labor Statistics shows how price levels remain elevated compared with pre-pandemic norms, keeping budgets tight for many households. That matters because a loyalty program only works when the value feels real enough to repeat. Guests are not done with restaurants, hotels, or small luxuries. They are examining them harder. Your program must answer a sharper question: why come back? If your program was built for yesterday’s spending habits, now’s the time to reimagine it. In this guide, we’ll look at how guest behavior is changing and what operators can do to redesign loyalty around clearer, more immediate value. Aggressive budgeting is not just coupon hunting. People use zero-based plans, envelope budgets, paused subscriptions, and stricter rules around discretionary spending. They ask, if I spend $40 tonight, will it still feel worth it tomorrow? Economic uncertainty pushes that thinking forward. Deloitte’s research has tracked these shifts, with many households reporting that they are choosing more carefully and trimming non-essentials when uncertainty rises. For restaurants and hotels, this means fewer impulse splurges and more planned visits tied to clear benefits. Guests still want a good meal, weekend away, birthday dinner, or calm night out. They just need value to be easier to see…
Did You Know?
Don’t kill tip culture – fix it. Every few months the conversation resurfaces: Should we eliminate tipping? On the surface, it sounds like a simple solution. Pay everyone a higher hourly wage and remove tips altogether. But after more than 20 years in the restaurant industry, as a tipped employee, manager, owner, and everything in between, eliminating tip culture would kill more than half, if not all of your favorite restaurants. The reality is that most independent restaurants operate on profit margins of less than five percent. There isn’t enough room to absorb the labor costs that would come with replacing tips with significantly higher wages…
Employee Tip
Reducing food waste through operational discipline. Across institutional and commercial dining, challenges in forecasting, overproduction, and plate waste translate into lost food, labor, energy, and capital. Food waste is one of the most material sustainability challenges in the food system, and foodservice is a significant contributor. In the U.S. alone, restaurants generate an estimated 11.4 million tons of food waste each year, totaling about $25 billion in value, according to ReFED. When done strategically, menu engineering allows organizations to balance guest satisfaction, operational performance and environmental impact, said Kelly Myers, Elior’s VP of Marketing & Responsibility…
