Mark Wasilefsky, Head of Restaurant and Franchise Finance at TD Bank, warns that disciplined operational management is no longer optional. With elevated labor costs and shifting consumer habits, maintaining a strong value perception is becoming increasingly difficult after several rounds of menu price increases.
The Value Equation and Restaurant Menu Engineering
Guests may be dining out less frequently, but they are still willing to spend more if they believe they are receiving good value. However, value is about more than price alone. “Flexibility, customization and portion choice are becoming just as important in shaping guests’ perceptions,” Wasilefsky explained. Operators relying solely on raising prices are already seeing traffic decline while struggling to maintain a strong value perception.
Operators should avoid falling into a value menu “death spiral,” where excessive discounting ultimately weakens the brand’s perceived value and long-term positioning. Instead of increasing prices across the entire menu, operators should focus pricing adjustments on higher-margin items such as bundles, bowls, and add-ons while leaving other menu options unchanged to avoid shocking customers. Taco Bell has demonstrated this approach particularly well by allowing ingredients to be swapped without requiring significant staff retraining. Offering multiple portion sizes—small, medium, and large—protects average check sizes while reducing food waste.
On the purchasing side, larger brands may be able to hedge key commodities due to their buying power, while all operators should remain flexible when sourcing seasonal and perishable ingredients to manage produce pricing. Waste should be treated as a profit-and-loss line item, with the same level of attention as any other major operating expense. The balance between dine-in, digital ordering, and third-party delivery continues to evolve. Operators that depend too heavily on a single business model remain more exposed to changing market conditions.
Adapting to GLP-1 Dining Habits
Demand for protein-rich menu options continues to grow, particularly among Millennials, Gen Z, and diners using GLP-1 medications. These medications suppress appetite but do not diminish the desire for a memorable dining experience. “Dining out remains an experience, and the growing use of GLP-1 medications does not diminish consumers’ desire for that experience,” Wasilefsky noted. “Instead, it creates a new challenge for operators: meeting changing eating habits while still delivering a memorable visit.”
To capture this market, operators should emphasize flavorful, high-protein, nutrient-dense offerings while expanding smaller portion options, including half portions, protein sides, and add-ons. Where menus allow, guests should be able to easily customize portion sizes without friction. The importance of customer experience continues to grow, as evidenced by McDonald’s recent hiring of a former Raising Cane’s executive and the long-standing reputation of Chick-fil-A for exceptional customer service. For quick-service and fast-casual restaurants, the experience should be as seamless and convenient as possible by keeping mobile apps and digital ordering platforms current, using customer data to personalize offers, and strengthening guests’ connection to the brand.
Managing Cyclospora Risk and Produce Pricing
The recent spike in Cyclospora infection cases is a stark reminder that fresh produce presents a unique food safety challenge because it is often served raw, unlike proteins which typically benefit from being cooked. To reduce risk, larger franchise systems should avoid relying on a single distributor for high-risk ingredients like leafy greens and herbs. Supplier diversity is valuable not only for mitigating Cyclospora risk but also for supply chain resilience, as demonstrated during recent tariff-related disruptions affecting coffee, where brands with multiple suppliers were better positioned to manage inventory.
Operators must also comply with state-mandated delivery handling requirements by rejecting shipments that do not meet temperature or quality standards and requiring documented washing and handling procedures from suppliers. Once produce arrives, teams should use separate preparation areas for vegetables and proteins, dedicated sinks, and stricter washing and holding procedures. “Restaurants should also have pre-written communication plans and product pull procedures in place for suspected contamination, as responding quickly is more important than achieving perfection—it is better to temporarily run out of an item than risk a food safety issue,” Wasilefsky suggested.
What Happens Next
As GLP-1 dining habits reshape average check sizes and produce pricing strains margins, the restaurant industry will increasingly rely on AI to improve scheduling, food preparation, and inventory management. Operators who treat waste as a strict profit-and-loss line item will outpace competitors who view it merely as an unavoidable kitchen reality. Prioritizing human capital while leveraging technology will define the next phase of restaurant management. Standard operating procedures play a critical role by reducing decision fatigue for frontline managers and providing consistency.
Employees notice when they are treated differently, so consistency is critical. Local operators should be given limited flexibility over pricing and menu decisions, as they are often able to respond more quickly than corporate teams. By regularly reviewing trends in labor costs, food costs, and traffic mix, operators can identify operational improvements and potential cost savings before they impact the bottom line. Brands that cross-train staff, offer local pricing flexibility, and maintain rigorous food safety protocols will be best positioned to navigate the remaining volatility of 2026.
— Isabella Morales, food desk, AXO News