Episode Transcript
[00:00:00] Speaker A: So here's what nobody wants to hear. The restaurant industry, the one you've been operating in for the last two decades, is dying. What's replacing it? Something completely different. In fact, I think over the Next, let's say, 24 months, we're gonna see a fundamental reshaping of what hospitality means, how restaurants operate, and ultimately, who wins. The operators clinging to the old playbook are going to get crazy, crushed. And the ones who see what's coming and adapt will dominate. I've been studying the data. I talk to operators every single day. I've been watching the early movers, talking to people at events, trade shows, conferences, and what I'm seeing is extraordinary. So in that vein, here are eight bold predictions about what's coming in our industry in 2026, 2027 and beyond. Don't go anywhere.
There's an old saying that goes something like this. You'll only find three kinds of people in the world. Those who see, those who will, and those who can see when shown. This is Restaurant Strategy, a podcast with answers for anyone who's looking.
Hey everyone, thanks for tuning in. My name is Chip Close. This is the Restaurant Strategy podcast. We put out two episodes every single week. Operations on Mondays, marketing on Thursdays. As you know, I wrote a book called the Restaurant Marketing Mindset. I run a membership site called Restaurant Foundations. I give talks all over the world and I run a group coaching program. It's called the P3 mastermind, where I work with independent restaurant owners and operators, people who are looking to grow but struggle with profitability. If that sounds like you, if you are stuck in single digit profits and you're ready for 15, 20% or more than, set up a call. Restaurant Strategy Podcast.
There is no pressure. We bring on about 10 to 15 new members every single month. It's an incredible community. If not you, it will be someone else. But my question is, why not you? If you are ready to make a consistent, predictable 20% to the bottom line and you figure out what your top line is and you do the math in your head and you figure out what 20% would mean in your bank account, meaning in your personal checking account this year. That's the power of the work we do. RestaurantStrategyPodcast.com Schedule grab time on the calendar. You'll chat with me or someone from my team, we'll ask you some questions, you'll ask us some questions and let's see if you're a good fit again. Restaurantstrategypodcast.com schedule and yes, that link is in the show notes.
Avi, you love to go out to eat. So as a guest, what's your biggest pet peeve when you're trying to choose a place to eat?
[00:02:50] Speaker B: Yeah, as the father of two children, I can't leave the house for less than $30 an hour. My wife has celiac. So when we're going to make a dining decision, I live and die by that menu. I'm in there researching what's available, what can my wife eat, what can we share, what do I get to eat off of her plate?
And so that menu is just a crucial part of all decision making for me as a consumer. It's why at Marquee, we focus so much on our menus, our menu integration, so that as operators, your menu that lives in your point of sale, that you want customers to see is available and up to date everywhere.
[00:03:23] Speaker A: To learn more about Marquee, go to marque.com, m A R Q I-I.com to learn more about this and all of the incredible features they have.
Okay, so in today's episode, I want to talk about the future. And I've been thinking really deeply about this. And again, we're at the beginning of the year. So let's look ahead to this year and beyond. And I want to make eight bold predictions or I want to share eight bold predictions of what I think is. Is coming for us. Because I think you either embrace this, you're either part of it, or you will get crushed by this. I feel like I talked about this, like, five, six years ago. We were talking about sort of the. The wave of technology, that you either ride the wave or you get crushed by the wave. And I think that was only the tip of the iceberg. I think what is coming now with AI and all of that, I think is. Is bigger than I think anyone realizes it. It was explained to me, it said it's the biggest shift that's happened to humanity since the. Since the advent of electricity. And I really do, do think that. And I think it's times 10. You're either part of it or you are not a part of it. And so this isn't a whole conversation about AI it's just the tip of the ice ridge, just the first, the place we're gonna start, because I think what's coming is gonna be really huge. So here we go. Eight predictions for what is coming in the next, let's say two years plus prediction number one, technology will amplify humanity. It will not replace it.
So for years, we've been obsessing with using technology to eliminate human interaction, right? So self ordering kiosks and automated phone systems and QR code menus. And I think the pendulum is swinging back hard because so much of that automation is happening all over the market that I think people come to restaurants for something different. So I believe in 2026, the winning restaurants will use technology to free up their staff to do what the humans do well best, create genuine connections. So, yes, AI might handle reservations, might optimize schedules, might help manage inventory, all in the background.
So that your team can be creative, so that your team can be out front making guests feel seen, heard, valued. They are going to do, your people are going to do the creative work, the, the, the engaging work. So we're going to use the computers, the systems, the AI to do all the other things. Mark my words, the restaurants that use technology to amplify the human touch will absolutely destroy the ones who are trying to replace it.
Again, the restaurants that use technology to amplify that human touch, that connection, that engagement, they will absolutely destroy the ones who are using AI and technology to replace the humans.
Now, prediction number two. Data integration will become the ultimate competitive advantage. Right now, most restaurants are sitting on gold mines of disconnected information. You get the POS data way over here, customer feedback way over there, inventory metrics somewhere else, operational data in another system, and none of it talks to each other.
The breakthrough is coming when restaurants can create a unified view of every location, every guest, every transaction.
Imagine knowing a guest had a bad experience before they even left the parking lot. Imagine predicting which menu items will fail before you even launch them. The death of data silos will separate the winners from the losers. And bigger organizations are already doing this. And I think it's finally filtering down to the little guys. The restaurants that connect their data streams will make faster, smarter decisions than their competitors can easily even comprehend.
Now, prediction number three. The me, me, me economy will demand hyper personalization. So what do I mean by that? The generic experiences I think are dying. One size fits all. Marketing is basically worthless. Mass menus are losing relevance. What happens is, I think we're entering what industry experts are calling the me, me, me economy. Look it up. Where every guest expects an experience tailored specifically to them, right? Their dietary preferences, their past orders, their occasion, their budget. In fact, 74% of consumers expect more personalization in 2025. Not want, they expect. And now they've been groomed because when they sign on to Amazon, when they sign into Netflix, when they sign into ChatGPT, these platforms all know the consumer. Really? Really.
And the same is going to happen when they walk into our restaurants. Because there is no difference between walking into Olive Garden, walking into a steakhouse, walking into the little pita shop. Again, 74% of consumers expect more personalization in 2025, 2026 and beyond. They don't want it. They expect it. So the restaurants. Right. Restaurants will use AI to recommend dishes based on previous orders, send personalized comeback offers to lapsed customers. Personalized offers. They'll create dynamic menus that adapt to individual preference.
Interaction will feel custom built.
So if you're still sending the same E blast to your entire list, you're going to quickly become obsolete.
Prediction number four Experience will trump everything else.
Customers are seeking experience far beyond the plate. Without memorable dining moments, guests will just choose takeout or catering or fast food.
Now think about it. Why would anyone leave their house, pay premium prices, which is what we charge, and spend their evening at your restaurant if they can get fed cheaper and faster at home? The answer is they won't. Not unless you're offering something that they can't get anywhere else.
Mark my words. In 2026, the restaurants that survive will be the ones offering eventful, unforgettable experiences. Right? So daytime DJs set up in coffee shops, open grab communal dining, theatrical presentations, Instagram worthy moments. Spaces that live throughout the entire day, not just dinner. Service.
The meal, remember is the pretense for the event. Never forget that we are going to go out on a date, so let's have dinner on our date. People could do lots of other things and I think it's amazing that we as humans celebrate our anniversaries, our birthdays, go on dates at restaurants. That's not normal. That's incredible.
Don't forget it.
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All of those links will be in the show notes.
Okay. Prediction number five the high low format will dominate. What do I mean by that? The Traditional split between fine dining, casual and fast food I think is becoming quickly irrelevant. What's replacing it? Hilo. Simple, familiar food paired with premium context. So interior design, presentation, ritual, product quality.
And if you look at what's already working right, Korean fried chicken with champagne and caviar. Rotisserie chicken elevated with technique and marinades. Comfort food made extraordinary through context and details, certainly over the last 10 years. There are plenty of examples, and I think we're just starting to see it ramp up. This isn't about being expensive or cheap. It's about creating perceived value through experience, not through complexity. Let me say that again. It's not about expensive or cheap. It's about creating perceived value through the experience, not through complexity, but through the experience itself. And in a world where consumers are budget conscious but still crave quality, high, low wins. Right? Simple at its core, premium in execution.
This is the way forward.
Prediction number six, value will be redefined. And no, it's not about price.
Guests want food that feels worth it, even when they're getting a deal. So the restaurants winning in 2026 won't be the cheapest. They'll be the ones delivering quality that matches the hype. Where the sandwich they receive actually looks like the sandwich in the picture. Where ingredients are properly cooked, where portion sizes feel fair.
Value isn't necessarily about just being affordable. Value is about the relationship between price, quality and experience. It is about expectations.
So many restaurants ran discount promotions in 2025 simply to drive traffic and then failed to deliver quality that justified the visit, even at a discount. So customers came once for the deal but then never returned. The winners moving forward will deliver consistent quality that exceeds those expectations, making every dollar spent feel like money well spent.
Prediction number seven, health conscious customization will become standard. Right. So with the GLP1 medications becoming more accessible, more affordable, dieting habits will continue to shift. They're already shifting and they will get more dramatic, meaning guests will want.
No, guests will expect smaller portions. They'll be okay with it. They'll want higher protein options, fiber rich choices, customizable sizes. Right. Here's the size of our portion. Well, I don't eat that much because I'm on this medication. How much for a smaller portion? And if you're not ready for it, you're gonna get left behind.
Here's the thing though. It's not just about the medication users. It's also part of a larger movement toward wellness focused dining. This has been 15, 20 years in the making, and I think it's coming to a head so restaurants will offer forgotten vegetables, fermented products, healthier, artisanal cuisine made from these seasonal ingredients. And it's not just the fancy high end farm to table places. I think you're gonna find it everywhere. Menus will showcase where ingredients come from. They'll focus on special preparation techniques and the stories behind the food.
Instagram then becomes the perfect tool to tell these food stories and boost visibility so the restaurants that make healthy, customizable dining feel indulgent rather than restrictive can capture an increasingly growing market. Let me say that again.
Restaurants that make healthy, customizable dining feel indulgent rather than restrictive will win.
Finally. Then, prediction number eight. Community connection will beat transaction optimization.
What does that mean? For decades, restaurants have focused merely on transactions, right? Butts and seeds. The amount of money generated per cover.
Get the guests in, get the guests in and out faster, maximize table turns, optimize the throughput. And I think all of that's important. But the brands that win in the next two years will use technology not just to do that, but to power community, focusing not just on transactions, but engagement. So what, what could that look like? Local partnerships with schools and businesses. Workplace catering that actually introduces your food to 35 potential customers with a single order. Events that bring neighborhoods together.
Spaces. Your space becomes a place where people gather, not just where they come to eat, but the town square.
70% of employees who first try a restaurant through workplace catering will order from it again on their own. Did you know that 70% of all employees who try a restaurant through catering at their workplace will go out and order it on their own? That's not a transaction. That's the beginning of building community.
That's the halo effect.
The restaurants that become integral parts of their communities, that help people connect, celebrate, and, yes, belong, will create loyalty that discounts and promotions can never buy.
The bottom line, right? So when we talk about these eight predictions, they all have one thing in common. They're all about putting human connection back at the center of hospitality while using technology strategically to make it more possible than it's ever been.
So the restaurants that thrive in 2026, 2027 and beyond won't be the ones with the most technology or the cheapest prices or the fastest service. It'll be the restaurants that make people feel something. The ones that create experiences worth leaving home for. The ones that use data and AI to deliver more humanity, not less.
The future of hospitality, I believe, is not about replacing the human touch. It's about taking all of those things. The busy work, the automating that so that we can amplify the human touch at scale at a level that we've never seen before.
Naturally. My question for you is, are you ready? And you might not be ready now, but if any of this resonates with you, I urge you to get yourself ready.
That's it, guys. The eight bold predictions for the next two years. I appreciate you making this show part of your week again. My name is Chip Close. I am the founder and CEO of Restaurant Strategy. I am your host. If you struggle with profitability, if you're ready to level up, make more work less, Please reach out restaurantstrategypodcast.com Schedule Set up a time on the calendar. You'll chat with me or someone from my team. We'll ask you some questions, see if you're a good fit. You'll ask us some questions to see if we are the ones that can help you. And if we feel like it's a good fit, we'll talk about next steps. Appreciate you very much, guys, and I will see you next time.
