U.S. Restaurants Overcome Financial Strain: TouchBistro’s 2026 American State of Restaurants Report Reveals Double-Digit Profit Margins and Tech-Driven Resilience

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NEW YORK--(BUSINESS WIRE)--Jan 27, 2026--

Today, all-in-one restaurant management system TouchBistro releases its 2026 American State of Restaurants Report. Drawing on insights from more than 600 U.S. restaurant owners, CEOs, general managers and area managers, the annual report shows an industry adapting at unprecedented speed by embracing smarter technology adoption and deploying creative operational strategies. For the first time since 2022, profit margins climbed back into double-digit territory, diner traffic maintained its upward momentum and debt levels fell significantly. All clear indicators that the industry’s financial strain is finally starting to lift.

Key findings include:

• Two-thirds (66 per cent) of independent operators are carrying debt (down from 78 per cent in 2024)
• Almost all (96 per cent) are spending more on labor costs this year compared to 2024
• 68 per cent have raised menu prices in the past year (up from 47 per cent in 2024)
• Over four-in-five (81 per cent) have seen an increase in takeout/delivery sales compared to 2024
• 85 per cent feel positive about the use of AI in restaurants

"TouchBistro’s 2026 American State of Restaurants Report clearly demonstrates the incredible resilience of independent operators. By taking a more targeted approach to operations and technology, restaurants are successfully shedding debt and bringing profit margins into the double digits,” said Samir Zabaneh, Chairman and CEO of TouchBistro. “From leveraging AI for efficiency and optimizing labor without massive cuts, to doubling down on digital-first guest experiences, strategic technology adoption is the key to sustainable success in today’s restaurant industry."

Economic Environment and Effects of Tariffs
2025 was defined by a turbulent U.S. economic landscape, where tariffs shifted on a dime, labor costs hit record highs, and consumers weighed every menu item more carefully than ever.

Over four-in-five (82 per cent) U.S. independent operators shared that tariff and trade policies directly contributed to their restaurant’s inventory challenges this past year, disrupting supply chains and forcing prices upward across nearly every ingredient category. Miami (91 per cent) and Austin (90 per cent) felt the heaviest effects. Los Angeles (64 per cent) saw somewhat less disruption, though even that lower figure represents nearly two-thirds of operators affected.

Rising food and inventory costs are hitting operators hard, with 54 per cent citing food costs and inflation as their biggest inventory challenge, up from 39 per cent in 2024. In response, over two-thirds (68 per cent) have raised menu prices over the past year. However, price hikes are not the only tool in play. To manage costs, operators are prioritizing waste reduction (42 per cent), supplier diversification (39 per cent), and technology or AI to identify inefficiencies (29 per cent).

Additionally, off-premise channels remain a growth driver for operators. Over four-in-five (81 per cent) report takeout and delivery growth, where sales jumped an average of 33 per cent. This matches 2024 levels, signaling that this revenue stream has stabilized into sustainable growth rather than a pandemic spike.

Despite the economic challenges, the amount of operators who are carrying debt has dropped from 78 per cent to two-thirds (66 per cent). The key difference from previous years is that operators are either borrowing less or paying it back faster, and the loans taken are more deliberate. Forty per cent of operators still took out new loans or financing in the past year, but as strategic financing to manage inventory costs and seasonal fluctuations.

Labor Cost Trends
The economic challenges are compounded by rising labor costs. An overwhelming 96 per cent of operators are spending more than last year due to rising wage expectations and competitive talent pressures.

However, when tackling the increased costs, only 19 per cent of operators chose to reduce headcount. Instead, most are investing in existing staff through productivity improvements (35 per cent), cross-training (34 per cent) and retention efforts (30 per cent).

To streamline costs and maximize staff, technology is playing a central role:

• Over a quarter (28 per cent) use POS systems for scheduling, and another 28 per cent deploy labor-saving tools
• The most popular solutions include order-ahead platforms (36 per cent), QR codes for menus and payments (36 per cent and 34 per cent respectively) and AI-powered voice ordering (29 per cent)
• The implementation of self-serve kiosks and labor management solutions (both at 28 per cent) highlight a focus on efficiency without replacing human interaction

A bright spot: 12 per cent of operators report no staffing challenges, up 6 per cent from 2024, showing some operators have found the secret to retention and recruitment.

Greater Use of Technology
In finding tactical solutions for economic challenges and labor costs, technology investment is surging. Almost three-fourths (74 per cent) of operators plan to spend more in the next six months. Top priorities include marketing software (30 per cent), reservation systems (28 per cent) and staff scheduling tools (26 per cent), reflecting a focus on efficiency, visibility and guest experience.

AI adoption remains strong but measured. Eighty-seven per cent of operators now use AI, primarily for menu optimization (31 per cent), reservations/booking (30 per cent), and inventory management (30 per cent). Meanwhile, automation continues to accelerate, helping operators serve faster, save time and boost revenue.

What Trends Should U.S. Restaurants Focus On This Year?
1. Labor Optimization Becomes Non-Negotiable: Effective optimization needs to make existing teams more productive.

2. Strategic Menu Engineering Becomes Essential: To maximize menu offerings, use POS and inventory insights to track both sales and costs.

3. Off-Premise Becomes an Equal Priority, Not an Afterthought: Consider takeout and delivery like a key section of your business.

4. Digital-First Discovery Becomes Tablestakes: Your Instagram, website and social profiles are critical revenue drivers.

5. Practical Technology Wins Over Flashy Features: Before adopting new tools, ensure they integrate with existing systems, are easy for your team to use, and solve a real problem.

For more insights on 2026 trends and how operators can maximize their business, the 2026 American State of Restaurants Report can be downloaded for free HERE.

To learn more about TouchBistro, go to www.touchbistro.com.

About The American State of Restaurants Report
TouchBistro partnered with research firm Maru/Matchbox again this year to survey more than 600 full service restaurant owners, presidents, and area/general managers across all 50 states, with an added focus on eight key cities: New York City, Los Angeles, Chicago, Dallas, Houston, Austin, Miami, and Tampa. Our research was conducted from October 2 to October 25, 2025. The statistically significant survey results are accurate 19 times out of 20.

About TouchBistro
TouchBistro is an all-in-one POS and restaurant management system that makes running a restaurant easier by providing essential front of house, back of house, and guest engagement solutions on one powerful platform. TouchBistro helps restaurateurs streamline and simplify their operations, increase sales, and deliver a great guest experience. For additional information, visit TouchBistro.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20260127769924/en/

Media Contact: Joyce Li |[email protected]

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: TECHNOLOGY WINE & SPIRITS TRANSPORT SOFTWARE RESTAURANT/BAR FOOD/BEVERAGE LOGISTICS/SUPPLY CHAIN MANAGEMENT RETAIL SUPPLY CHAIN MANAGEMENT

SOURCE: TouchBistro

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PUB: 01/27/2026 06:00 AM/DISC: 01/27/2026 06:00 AM

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