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DMA Fall Conference Convenes
Next Month in San Antonio!
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This year's exciting agenda includes new speakers, topics and activities focused on connecting attendees with the industry and each other! - Keynote – Brittany Hodak
- 2026 Industry Forecast for Chains – Circana's David Portalatin shares insights from the latest Eating Patterns in America study for chains and their distributor partners
- Serving Raving Fans moderated by Hillary Holmes from Olo - Join panelists from top operators as they discuss the critical importance of Supply Chain in delivering customer experience excellence
- Delivering Impact Through Disruption moderated by Adrienne Moncreif from Cleveland Research - Adrienne shares the very latest national distributor state of the industry then hears how distributors use innovation as the path to ‘yes’ with leaders from some of DMA’s top distributors
- Winning Together in Tough Regulatory Times moderated by Dylan McDonnell from Foodini -Dylan shares the industry perspective on MAHA and other movements then gets advice from a panel of industry experts on how to monitor everything happening in the next twelve rollercoaster months
If you are interested in attending (or sponsoring) future DMA events, reach out to Charley for more information. Thank you to this year's Partners and Sponsors for making the conference extra special for our guests!
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Customers in a Square Loyalty program visit a restaurant 57% more often, according to global Square Loyalty 2022 data. Learn More
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What Operators Need to
Know About ADDE
California Gov. Gavin Newsom signed SB 68, the Allergen Disclosure for
Dining Experiences (ADDE) Act. The new legislation will require California
restaurants with 20 or more locations to disclose the “Top Nine” allergens on
their menus, reported Modern
Restaurant Magazine.
While such rules have already
in place in the EU since 2014, this legislation is the first of its kind in the
U.S. Dylan McDonnell, founder and CEO of Foodini said the law will push
restaurants to operate with the same rigor around ingredient data that they
already apply to food safety.
“Recipes will need to be
documented … Restaurants will likely have a preference for suppliers with
robust allergen statements and batch-level traceability. Restaurants also will
be less amenable to last-minute substitutions that create disclosure work –
especially without advanced notice,” he said.
See Dylan at the DMA Fall
Conference!
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Junior Size Me: 44% of U.S. Adults Now Order Kids’ Meals
Dining out at restaurants has become significantly more expensive this year, rising 3.9% over the last 12 months, according to data from the most recent consumer price index.
While many consumers have been forgoing restaurants in favor of cooking more meals at home, others are leveraging a different strategy to make up the difference.
In a recent survey conducted by Lightspeed Commerce, a provider of point-of-sale technology for hospitality businesses, almost half of U.S. adults (44%) said they’ve been ordering from restaurants’ kid menus while dining out.
Leith Steel, director of insights and brand communications at Carbonate, a creative agency, told The Food Institute that there are two strong factors at play: - Inflation: “The kids menu offers value, with lower prices that appeal when food costs are rising.”
- Health: “The kids menu offers smaller portion sizes, which means fewer calories, and for GLP-1 users who have reduced appetites, the children’s portions are often a better fit.”
“We expect to see more places offering smaller portion options on their menu,” the industry expert said.
Steele expects restaurants to start offering more signature dishes in small and large sizes, or even offering a dedicated menu of smaller-sized options to meet growing demand.
Economic Stress Reshapes Food Delivery In addition to the motivators identified above, Michael Della Penna, chief strategy officer at InMarket, says that nostalgia is often part of the equation as well.
“As people deal with tariffs, inflation, and daily stress, they look for comfort in what’s familiar. Restaurants are paying attention,” Della Penna said.
“McDonald’s brought back hits like the Snack Wrap and launched Adult Happy Meals, mixing old memories with a good deal.”
Consumers are adjusting their dining behavior in real-time in response to economic pressures and economic uncertainty, including choosing to share dishes rather than order individually and also ordering smaller portions, including adults ordering off of the kid’s menu.
Brandon Dorsky, a food and hospitality business lawyer, consultant, and co-owner of Yeastie Boys Bagels, pointed to the “increasingly high volume of promotional activity within food delivery applications like Uber Eats and DoorDash,” a phenomenon he says reflects a recent trend toward “more cost-conscious and price-discerning customers.”
“Yeastie Boys has increased food-delivery application-based promotions in 2025 as part of an effort to not only reach more consumers, but also to better understand the behavior and price sensitivities of our average customer,” Dorsky said. Food Institute Focus
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Survey Reveals Restaurants Focused on AI, Employee Retention
Restaurants have faced challenges in 2025, but operators have remained resilient, as noted by Toast’s latest survey. U.S. Restaurant Trends 2025 reveals how operators are tackling challenges like inflation, hiring, and using AI effectively.
For starters, labor challenges – difficulty finding employees, as well as paying them competitively – are stressing restaurant leaders. Roughly four in 10 (41%) operators report facing hiring challenges. In response, they’re looking for ways to help their staff work more efficiently.
“Getting, keeping and affording good people is still an issue,” Fransmart CEO Dan Rowe told The Food Institute. “Restaurants like Konala, with low labor models, can afford to over-pay because they have half the normal labor of a typical restaurant at the same sales. … So, by offering a little more, they attract and keep better people longer.”
More than anything, restaurants are displaying a renewed focus on profitability, efficiency, and guest experience. To understand how restaurants are navigating modern challenges, Toast surveyed more than 700 industry decision-makers from across the country.
Here’s a look at key takeaways from Toast’s survey: - 20% of restaurant operators called inflation their top pain point
- 25% say they’re “very likely” to expand their business in 2026
- 47% are focused on increasing staff efficiency
- 48% plan to increase prices if inflation persists
- 81% plan to use AI more in the future
Leaning into AdvertisingApproximately 40% of restaurants cited profitability as their top priority for the months ahead, far outpacing any other objective. Toast found that the main strategy for accomplishing that goal is increasing guest demand. Marketing will be key in that respect, yet 46% of restaurant operators said they find advertising challenging.
If consumer spending slows in the months ahead, the top strategies for operators are to increase marketing (47%), and offer deals (46%), well ahead of cost-cutting measures like reducing staff headcount (17%). Additionally, many restaurants are focused on optimizing schedules.
Embracing AIIn the second half of 2025, restaurant decision-makers are seeking an edge and ways to give their teams human-boosting technology that helps them work smarter. Roughly 86% of operators said they feel at least somewhat comfortable using AI.
“Most AI is over promising and under delivering,” Rowe said, “but several [restaurants] are starting to use AI to enhance order taking, increase check average, reduce mistakes, personalize marketing campaigns, track orders, and even for AI robotics.”
Faced with uncertainty in 2025, most restaurants have remained resilient, Toast noted. Operators are choosing to fight for guest traffic by investing in marketing and customer incentives rather than cutting staff or hours. They’re embracing technology to increase staff efficiency.
“This isn’t just about protecting margins; it’s about protecting the heart of the business – the experience, the community, and the irreplaceable magic of hospitality,” Toast wrote. Restaurants’ “challenges are real, but the industry’s resolve is stronger.” Food Institute Focus
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Move Over Dirty Soda, Heavy Soda Goes Viral
For those asking themselves, “How sweet is too sweet?” the answer is heavy soda. A regional beverage with dubious origin has TikTok, Instagram, and Reddit users excited by the intense sweetness and flavor amplification.
Heavy soda is a soda beverage available at certain beverage dispensers that use a higher ratio of soda syrup dissolved in carbonated water, resulting in a heavier, more viscous, and sweeter drink by volume.
Popular “heavy” beverages include classic soda fountain options, such as Pepsi, Coke, and Sprite.
However, spotting the modified beverage at retail is something of a shooting star, with many TikTok users accusing the beverage of belonging to myth. The reality, however, is that it exists, and its existence is resoundingly divisive.
Health concerns from medical professionals add to the debate, with Las Vegas orthodontist Dr. Jeremy Manuele telling Fox News the beverage can put consumers at higher risk for cavities, gum inflammation, heart disease, and more.
Anatomy aside, the latest resurgence is likely thanks to the growing dirty soda trend as well as TikTok virality—a single TikTok post from @kateboyerx2 amassed nearly 7 million views, and there are countless others following suit.
C-Barn, a Missouri-based convenience chain, has a long history of offering heavy sodas. Co-owner Ray Johnson confirmed a ratio of 3:1 (carbonated water to syrup) in its heavy soda recipe for at least eight years.
Joyce Meadows, C-Barn store manager, told Today that it is a crowd favorite at several locations.
“There are some key things that people say they just have to have, and heavy soda is one of them,” said Meadows. “They say when the ice melts, the flavor is still there.”
Regional Roots, National Appeal Although many trace the beverage’s origins to the Midwest (specifically, Montana), interest is countrywide.
In a Google Trends map tracking search term usage from the last 12 months ending Oct. 7, Kentucky, Utah, and Oklahoma are among the top areas where users are searching the term.
Consumer behavior shifts and current market conditions make this an opportune moment for convenience chains to hop on the trend.
Similar to dirty soda’s appeal, wherein additional flavorings are added to traditional sodas, heavy soda adds a touch of customization to the routine act of purchasing a beverage, plus its exclusivity, unique experience, and social media virality make it particularly enticing for younger consumers.
More importantly, the flavor intensity invokes a nostalgic appeal for many. One Reddit thread on the topic had users reminiscing on pizzerias, movie theaters, and QSRs that offered a similar-tasting item from their childhood.
At a time when consumers are looking for “moments of joy” in their day, heavy soda boasts an attractive value proposition.
“The extra syrup gives it extra flavor, and it feels like even more of a little treat,” said Manuele.
In last year’s Mondelez State of Snacking report, 76% of consumers look for a snack to boost their mood during the day, and 81% (a 9% increase from the year before) snack to find quiet moments to themselves. Apart from the functional purpose heavy soda affords, where all-day drinkers don’t have to worry about ice diluting flavor, these snackers are likely to enjoy the intensity of heavy soda.
Beverage Bomb—Intensity in the Zeitgeist Consumers like to be wowed by the beverages they consume; however, the traditional soda industry has stagnated, according to research from data insights platform MenuData.
Heavy soda is easy for operators to include in their portfolio, as it doesn’t require any additional ingredients, and can help turn the needle in terms of foodservice beverage sales, a higher-margin area that can help offset rising foodservice labor and input costs.
Dirty soda may offer a case study into heavy soda’s market potential, as it is bucking the industry trend, growing at a rate of 42% year-over-year with an overall market penetration of 2%. These drinks also sit at a price premium compared to traditional soda, averaging $5.50.
CPG innovations such as Mountain Dew’s dirty soda also demonstrate shifting consumer interests toward saccharine indulgences. Hitting shelves in 2026, Dirty Mountain Dew Cream Soda Dew offers an indulgent taste that Pepsico’s U.S. beverage CMO Mark Kirkham claims takes the trend “to a whole new level.”
The craze has also taken to foodservice, with McDonald’s announcing a test of an enhanced soda portfolio earlier this summer.
In an era where consumers are becoming increasingly concerned with how food contributes to their personal health and wellbeing, and with functional sodas growing in popularity, unexpectedly, consumers are excited by sweet, indulgent products. Food Institute Focus
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Store News: White Castle unveiled its “Castle of Tomorrow”
prototype near downtown Columbus, Ohio. The updated model features bright
lighting and high ceilings with an open layout, as well as a dedicated mobile
order pickup window to remove congestion and confusion at the front counter,
reported QSR. Full
Story
Washington, D.C.-based chain &pizza is expanding
outside of the Northeast for the first time. Its new franchising push will
include new stores in Fla., Ga., N.C., and S.C., reported NRN. Full
Story
El Pollo Loco just celebrated the grand opening of
its 500th restaurant in Colorado Springs, its third location in Colo.
The QSR chain plans to open 10 stores this year, with the majority outside of
Calif. as it works to grow from a regional powerhouse to a national brand,
reported Restaurant Dive. Full
Story
Firehouse Subs opened its 1,400th location in
Clearwater, Fla. The restaurant is owned and operated by Tampa-area franchisee
Colin Means. Full
Story
Jack in the Box said it has entered into an
agreement to sell Del Taco to franchisee Yadav Enterprises for $115 million. The company first announced the decision to
divest the subsidiary in April, and the transaction is expected to close in
Jan. 2026. Full Story |
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Store News (Continued): Panera is testing three new beverages in select markets,
including two “Fresca” drinks and two caffeinated “Energy Refreshers.” The
drinks are among the chain’s first caffeinated innovations since the company
was involved in lawsuits related to its Charged Lemonades, reported NRN. Full Story
Taco Bell launched an all-new Flamin' Hot Grilled Cheese
Burrito featuring rice infused with the flavor and crunch of Fritos Flamin'
Hot corn chips. Fans can enjoy the LTO menu item as part of Taco Bell's $9
Discovery Luxe Cravings Box or à la carte for $5.49. Full Story
First Watch recently reached 600 units and expects to
open nearly 60 restaurants by the end of 2025, making it one of a handful
of casual-dining chains to report positive unit growth this year. One key
driver of the breakfast chain’s growth is finding second-generation real estate
as other brands divest real estate, reported Restaurant Dive. Full
Story
7 Brew Coffee celebrated the opening of its 500th stand with
a race-themed takeover in Toms River, N.J. In 2024, the drive-thru beverage
brand was recognized as the fastest-growing U.S. restaurant chain, achieving
more than 4,000% growth since 2019, reported QSR. Full
Story
Pepper Lunch, an experiential Japanese
fast-casual concept with 540+ locations across 17 countries, announced the
debut of its dessert menu at U.S. locations. The first two offerings include a Flourless
Chocolate Torte and Yuzu Cheesecake, reported QSR. Full
Story |
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Store News (Continued):
Potbelly is adding wraps to its core menu beginning Oct.
13. The chain will offer two new signature wraps, Chicken Bacon Ranch and
Southwest Avo Chicken, and allow guests to turn any sandwich into a wrap,
reported Restaurant Dive. Full
Story
Sun Holdings has acquired Bar Louie for an undisclosed
sum through affiliate company Louie Restaurants. The 39-unit chain filed
for Ch. 11 bankruptcy for the second time in March, reported Restaurant Dive.
Full
Story
Wendy’s launched Project Fresh, a multi-phase
strategic plan to revitalize the brand, reallocate capital, stimulate growth,
and accelerate profitability. “With Project Fresh, we're taking decisive steps
together as One Wendy's to strengthen our foundation, enhance restaurant
performance, and modernize how our customers experience the brand,” said CFO
and interim CEO Ken Cook. Full Story
Domino’s Pizza unveiled its first brand refresh in 13
years, led by a new jingle entitled “Dommmino’s” sung by music star
Shaboozey. The chain also updated its pizza boxes with a “simple approach that
is designed to be vibrant and instantly recognizable,” the company said in a
press release, reported QSR. Full Story
QSR seafood chain Long John Silver’s recently
rebranded with a focus on chicken,
unveiling a new logo featuring a chicken and a new chicken wrap. The rollout
follows a pilot program at the brand’s new flagship location in Louisville, Ky. Full Story |
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Executives on the Move:
Snooze Eatery has hired Josh Kern as CEO, two weeks
after Kern left his post as CEO of SPB Hospitality. Kern replaces David Birzon,
who had been Snooze’s CEO for 13 years and will join the breakfast-and-lunch
chain’s board of directors, reported Restaurant Business. Full
Story
Meanwhile, SPB Hospitality, a portfolio company of Fortress
Investment Group, has appointed G.J. Hart as chairman and CEO, effective
immediately. Hart previously served as CEO at Red Robin and succeeds Josh Kern,
who is resigning to take a different executive role in the restaurant industry,
reported Restaurant Dive. Full
Story
Panera Bread has appointed former ABM Industries CFO Earl
Ellis as its new CFO, effective immediately. “Panera's strong foundation,
iconic reputation, and passionate teams create an extraordinary platform for
growth,” said Ellis. Full Story
CAVA COO Jennifer Somers has departed the company.
Jonathan Braatvedt, SVP of operations, will assume the role in an interim
capacity while the chain searches for a permanent successor, reported NRN.
Full
Story
Bubbakoo’s Burritos has appointed Alex Jano as VP of
marketing, Austin LeFevre as CFO, and Luke Mandola, Jr. as VP of franchise
sales and development. The leadership expansion unites top talent from
across the restaurant and retail industries, positioning Bubbakoo’s for
accelerated growth nationwide, reported QSR. Full
Story
Jersey Mike's Subs announced it has appointed Betsy
Mercado as its first chief people officer, effective immediately. In this
role, Mercado will lead Jersey Mike's comprehensive people strategies that
support growth and strengthen its people-first culture. Full
Story
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Restaurants Leverage ‘Personal Touches’ to Level Up the Delivery Experience
Delivery has the potential to attract consumers and keep them coming back, but it can also push them away – and put your restaurant’s reputation on the line – if things go awry.
And when orders are completed through third-party networks, restaurant operators have limited control over factors like delays, traffic, and handling.
What they can control, however, is the experience inside the bag – and “personal touches,” such as extra sauce packets or coupons customers can apply to future orders, can go a long way in this regard.
According to a new secret-shopper study from Intouch Insight, only about 23% of orders analyzed during the period included a personal touch, but overall consumer satisfaction increased by four points when they did.
Strategies like sealing packaging and honoring special requests can help restaurants get ahead of other potential issues that may be beyond their control.
Jordan Johnson, director of off-premise at Firebirds Wood Fire Grill, has adopted a philosophy of “hospitality beyond the four walls” to ensure that every experience is “elevated and warm, no matter how [guests] choose to enjoy Firebirds.”
The team formalized their off-premise standards during the COVID pandemic, which included sealing to-go bags and utilizing curbside technology to reduce wait times.
“We even ensure our staff is trained on the way we package our items, separating them by temperature so those fire-grilled favorites arrive at home just as they would from the kitchen,” Johnson told FI.
Firebirds also uses personalization levers that travel well, from online-exclusive family meals to loyalty perks through its Inner Circle, as well as “surprise and delight moments” like handwritten thank-you notes or a small dessert.
Piada Italian Street Food is also refining their delivery approach.
“Our top priority is ensuring every order arrives complete, accurate, and with everything needed for a great experience,” said Stephanie Bauer, director of marketing.
To reduce common misses, Piada introduced deli kits that ensure “silverware and napkins are never forgotten.”
The restaurant is also exploring the idea of testing packaging innovations that aim to keep food “as hot and fresh as possible,” with a special focus on its signature Sticks so they arrive “just as crispy and satisfying as they are in-restaurant.”
In addition, Piada often steers guests to first-party channels via LTO promotions such as “offering free delivery on orders over $15 placed through our digital channels,” giving staff more control over the delivery journey and an open line of communication with the customer.
For independent operators, the mindset is equally deliberate.
“Someone may want a sauce or condiment or certain tea we normally don’t carry,” Southern Grounds owner-operator Nick Presti said, noting that the company is “going to get it and keep it stocked for the next visit” in response.
And catering to such preferences can be an effective way to turn a one-time order into a long-term relationship. Food Institute Focus
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September Same-Store Sales Up 1.1% Same-store sales for the restaurant industry increased 1.1% in September year-over-year despite a 1.5% decline in comparable traffic for the period, according to Black Box Intelligence. That said, despite a few months of optimism for the industry, the weakening economy began to impact foodservice sales.
"In September, year-over-year same-store sales and traffic worsened for the second straight month, underscoring that the economy—and restaurant performance—are losing steam in the back half of the year."
Blackbox noted the five months of optimism and growth was cut short in August when sales slowed to 2.3%, with September representing the second month of declining sales. Full Story
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