From navigating new consumer trends and a challenging labor market to leveraging the right technology and keeping up with complex tax law and regulation changes, operators who stay proactive will be best positioned to thrive. That was among the lessons from this year’s Restaurant Finance Monitor’s Restaurant Finance & Development Conference (RFDC), which is one of the industry’s premier events.
Forvis Mazars is a continued proud sponsor of the conference, and this year’s keynote speakers included Craig Culver, Culver’s co-founder and chair; Katie Fogertey, Shake Shack chief financial officer; Dr. Nela Richardson, ADP chief economist; Leighton Hull, Hull Advisory founder; and John Daly, PGA professional. This article will highlight four key conference takeaways that restaurateurs can use to help their businesses prepare for 2026.
Trends
Consumer spending habits are changing. Costs continue to rise, and the K-shaped economy has redrawn the lines for consumers and their spending power.
- Value wars are back. Restaurants are bringing back tiered pricing strategies to win back cost-conscious consumers.
- Refocused menus. Restaurants are optimizing their menus in an attempt to regain competitive advantage.
- New convenience competitors. Grocers and wholesalers have begun to actively compete for prepared food dollars.
Turnover
Navigating the labor market continues to be a challenge across the restaurant industry. There is concern about getting high performers to make the shift into management roles. Getting creative with pay and letting employees earn additional compensation can lead to reduced turnover and greater store-by-store results.
- Commission-based pay scales can reward front-of-house staff for upselling and turning tables quickly.
- Store-level bonuses based on meeting metrics and scorecard results can allow staff to take pride in their store while improving standards.
- Employee stock ownership plan (ESOP) and phantom equity strategies continue to engage workers.
A key factor in these nontraditional approaches is getting your workforce’s input when developing or implementing a new pay strategy.
Technology
Hospitality and customer experience are still the key factors in repeat visits. However, restaurants are utilizing their tech stack to create a hidden competitive advantage that can lead to growth.
- Robots have been taking orders for years and are now starting to make deliveries.
- Enhancing your customer relationship management (CRM) process through tech tools can provide additional insight into your customer base while enhancing the customer experience.
- Maximizing a restaurant’s current tech stack may be more beneficial than subscribing to the best and brightest.
Taxes
The One Big Beautiful Bill Act (OBBBA) created a lot of buzz and some confusion. No tax on tips or overtime was a selling point of the new tax law; however, the reality is not so cut and dry.
- No tax on tips does leave some tax on tips as payroll taxes are owed on the earnings and there is a $25,000 per return cap on deduction. In addition, there are phaseouts for higher-income earners.
- No tax on overtime is subject to similar limitations as no tax on tips. For example, the deduction is limited to the amount paid in excess of the regular hourly rate and not the entire time-and-a-half rate.
- 100% bonus depreciation is back, allowing tax return deductions to more closely align with cash outlays for assets placed in service after January 19, 2025.
- The calculation for Section 163(j) interest limitations has been adjusted to use earnings before interest and taxes (EBIT) instead of earnings before interest, taxes, depreciation, and amortization (EBITDA) when determining the yearly limitation. This should help private equity-backed and more highly leveraged restaurants maximize their tax deductions.
Conclusion
As we head into 2026, these insights from the RFDC underscore one clear truth: adaptability is everything. The Hospitality Team at Forvis Mazars remains committed to helping restaurateurs turn their challenges into opportunities. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.