February 2026
Register Now: DMA’s Party at the Post Office!
We’re excited to announce that DMA’s Party at the Post Office is returning this year! Mark your calendars for Friday, May 15th, when we’ll take over the rooftop of Chicago’s iconic Old Post Office for an evening of connection, conversation, and celebration.
Kicking off National Restaurant Show weekend, this event brings together operators, distributor members, supplier partners, and DMA leadership in one of Chicago’s most memorable settings. Guests will have the chance to catch up with colleagues from across the country, network with industry peers, and enjoy a relaxed atmosphere.
Don’t miss this opportunity to reconnect with your chain community and celebrate all that makes our industry thrive. Register Now and reserve your badge today!
Hello from DMA
As February unfolds, one thing is clear: the foodservice industry is moving with momentum. Operators are navigating evolving consumer trends, distributors are optimizing supply chains, and leadership teams across major brands are making strategic moves that set the stage for the year ahead.
Here’s a look at the stories shaping foodservice right now — and what they could mean for all of us.
Industry News
Lakeland Market Spotlight: Positioned for High‑Velocity Growth
Lakeland is quickly becoming one of Florida’s standout foodservice markets. Backed by Technomic’s Ignite Company market‑level insights, the latest data shows a market with 1,600+ locations, nearly $2B in 2025 sales, and some of the strongest projected growth rates in the country through 2026 and beyond. Lakeland ranks among the top 10 fastest‑growing U.S. markets, making it a strategic area for brands focused on expansion.
From a dense mix of limited‑service and full‑service concepts to a competitive but scalable operating environment, Lakeland offers meaningful opportunity for growth-minded operators who can align with its fast‑changing consumer base.
Demographics Driving Demand
Lakeland’s demographic profile continues to fuel its foodservice momentum. The market blends household stability, growing diversity, and strong family presence — creating demand across value, convenience, and culturally relevant concepts.
Key demographic insights:
Population: 818K (0.3% of the U.S.)
Over‑indexing households earning $50K–$74K
Over‑indexing Hispanic/Latino population
Strong representation of mixed/other ethnicities
These dynamics create opportunities for brands that tailor offerings to a broad, diverse customer base — whether through family‑focused value, menu variety, or culturally driven innovation.
If you’d like to take a deeper dive into Lakeland’s data, trends, and operator implications, email Cassie Norris - cassie.norris@dmadelivers.com
[Source: Technomic Ignite Company industry market size data]
Operators Shift from Defense to Offense in 2026
The January TCE Pulse Report highlights key trends shaping restaurant strategy in 2026, showing how operators are moving from defensive cost control toward targeted growth initiatives. Key takeaways include:
Diverging consumer segments: Affluent guests and constrained spenders are creating different traffic and spending patterns across Quick Service, Fast Casual, and Casual Dining.
Strategic focus on value and messaging: Operators are adjusting loyalty programs, promotions, and menu positioning to match economic realities of their core customers.
Operational discipline as a differentiator: Brands executing efficiently on labor, inventory, and service quality are seeing measurable performance advantages.
Supplier partnerships matter: Transparent, consistent relationships with distributors and suppliers are increasingly a competitive edge in a volatile cost environment.
The report underscores that data-driven strategies aligned with customer economics are central to winning in 2026.
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Industry News (Continued)
Restaurant Industry Shows Disciplined Growth in Early 2026
Industry commentary from late-January conferences and earnings discussions points to steady but measured growth across restaurant segments. Traffic remains strongest among higher-income consumers, while value-oriented platforms continue to drive frequency in quick-service and fast-casual.
Operators are focusing on margin discipline rather than aggressive pricing. Menu simplification, bundled offers, and targeted promotions are outperforming broad price increases. Commodity volatility has eased in select categories, but labor and insurance costs remain elevated.
For distributors and suppliers, this environment reinforces the importance of:
Contract pricing stability
Operational efficiency
Cross-category promotional collaboration
Data-backed category recommendations
Growth is present — but it is strategic, selective, and ROI-driven.
[National Restaurant Association] [Restaurant Business]
National Chains Continue Strategic Footprint Optimization
Several major brands announced estate optimization efforts during the reporting window. The Wendy's Company confirmed plans to close up to 350 underperforming U.S. units in the first half of 2026 as part of its broader profitability initiative.
Meanwhile, Red Lobster leadership indicated additional footprint reductions may follow its restructuring efforts, as the brand refocuses on its strongest-performing markets.
These actions reflect portfolio discipline rather than industry contraction. Operators are reallocating capital toward remodels, technology upgrades, and high-performing geographies. For distributors, it highlights the importance of diversified account bases and flexible logistics planning as regional footprints evolve.
Alternative Proteins Expand National Foodservice Distribution
Bayou Best Foods announced expanded U.S. foodservice distribution of its plant-based shrimp through major broadliners including Sysco Corporation, US Foods Holding Corp., and Performance Food Group.
While plant-based growth moderated in recent years, placement within national distributor catalogs suggests the category is stabilizing — and becoming more strategically positioned rather than speculative. Operators are selectively testing plant-forward menu items, particularly in coastal and urban markets, where demand for sustainable seafood alternatives continues.
For distributors, this reflects balanced portfolio strategy: maintaining exposure to growth categories while managing SKU performance closely. For suppliers, it signals that product quality, price parity, and operational ease (prep time, yield, consistency) remain essential to long-term adoption.
Store News
Bahama Breeze to permanently close all 28 locations by Apr 5, 2026
Darden Restaurants confirmed that its Bahama Breeze concept will shutter all locations, with half being fully closed and the rest converted to other Darden brands over the next 12–18 months. Employees are being offered shifts at other units or severance packages. Full Story
Chipotle accelerating expansion with aggressive 2026 growth plan. Chipotle announced plans to open 350 new restaurants in 2026 — nearly one per day — with most locations featuring Chipotlanes to meet growing digital/e-commerce demand. Expansion includes continued builds in Florida and other high-growth states. Full Story
Denny’s ushers in strategic menu and operational changes.
Following its acquisition and CEO transition, Denny’s has rolled out four major restaurant changes this year, including a new value menu lineup (“Slammin’ Meal Deals”), beverage innovations, and fan -favorite dessert returns designed to increase traffic and enhance guest experience. Full Story
Omaha Steaks ends foodservice fulfillment for restaurants.
Omaha Steaks announced it will exit restaurant foodservice fulfillment to prioritize retail, ecommerce, and subscription growth. Around 100 restaurant partners will need new supply arrangements, especially in the Omaha market — a disruption for operators reliant on that meat provider. Full Story
Store News (Continued)
Red Lobster continues turnover and reevaluation.
While traffic and sentiment have improved since emerging from bankruptcy, Red Lobster’s CEO says the company may shrink the estate further to bolster profitability and refocus on its strongest markets, all while continuing to explore selective growth via franchising and new retail spin-offs for popular items. Full Story
Savvy Sliders expands into Texas with multiple new locations
The fast-growing gourmet burger/sliders brand confirmed plans for multiple Texas restaurants, including a new Pasadena (Houston area) branch co-located with Fat Boy’s Pizza, part of ~60 restaurants currently in development nationwide. Full Story
Wendy’s announces up to 350 U.S. closures as part of turnaround effort
Wendy’s revealed it will close up to 350 underperforming locations in H1 2026 under its “Project Fresh” strategy aimed at strengthening profitability and revamping operations. Full Story
Executives on the Move
Leadership changes across major brands continue to reflect where the industry is investing for the future:
CEC Entertainment the parent of Chuck E. Cheese and Peter Piper Pizza appointed Nathan Hunstable as Chief Information Officer, highlighting a broader trend in elevating operational tech talent at legacy food-and-family entertainment brands. Full Story
Dine Brands Global (Applebee’s, IHOP, Fuzzy’s) appointed Enrique “Rick” Silva (former Checkers & Rally’s CEO) and Amanda Clark (former Papa John’s COO International) as independent board members, expanding board size and strategic expertise. Full Story
Freddy’s Frozen Custard named Todd Paladini as its first Chief Information Officer — an expansion of its leadership team to support technology strategy and scalable growth across franchise and corporate units. Full Story
Little Caesars promotes internal development leader Sally Rampersad into a new role as Director of Non-Traditional and Development Services. Full Story
The National Restaurant Association named Mike Axiotis of Lehigh Valley Restaurant Brands as Board Chair and Carrie Leishman of the Delaware Restaurant Association as Foundation Chair, with key officers from PepsiCo Foodservice and Ecolab — notable leaders influencing policy and workforce development. Full Story
Portillo’s announced Brett Patterson (former Outback Steakhouse, Ruby Tuesday, Olive Garden exec) as its incoming CEO effective Feb 23, a key leadership change aimed at stabilizing and scaling the Chicago-based chain. Full Story
The Women’s Foodservice Forum revealed its 2026 leadership slate — bringing together executives from operator, supplier, and distributor companies to sharpen talent pipelines and shape strategic industry priorities. Full Story
Supply Chain News
Technology Investment Continues Across Distribution Networks
Major foodservice distributors are accelerating investments in warehouse automation, AI-enabled demand forecasting, route optimization software, and enhanced digital ordering platforms.
These investments aim to lower cost-to-serve while improving accuracy and fill rates — critical as operators demand tighter inventory control and more predictable deliveries.
For suppliers, this evolution means improved data transparency — but also heightened performance expectations tied to OTIF metrics and forecasting accuracy.
Uneven Pork Production Forecasted
As trade patterns continue to shift, affected by policy changes in major countries, the industry is expected to experience uneven production growth. Several factors will impact supply, including biosecurity, disease pressures, relatively high construction costs and trade restrictions
Economic Pulse
Consumer Spending and Inflation Trends Shape Early 2026 Foodservice Outlook
Steady demand among higher-spending diners and moderate operator optimism continue into early 2026, with analysts emphasizing cautious growth rather than acceleration. Tailwinds such as lower fuel costs and consumer tax adjustments may provide incremental support — but overall demand remains tempered by inflationary pressures and competitive pricing in the food-away-from-home segment.
U.S. Food Price Outlook Signals Moderating Inflation for 2026
The latest Food Price Outlook offers a timely snapshot of how food prices may evolve through this year, which matters deeply for operators balancing menu costs, pricing strategies, and margin pressures.
According to the ERS forecast, overall food prices are expected to rise more slowly than historical averages in 2026, with the CPI‑based outlook showing general food inflation moderating compared with recent years. Food‑at‑home (grocery) price growth — which usually mirrors retail cost pressures — is expected to expand at a lower rate, while food‑away‑from‑home (restaurant and foodservice purchases) prices are forecast to rise more in line with cost pressures within the dining sector.
In practical terms, this outlook suggests that many of the elevated food cost trends operators and distributors have contended with in recent years may begin to ease — a welcome signal, especially given persistent wage, freight, and commodity cost pressures. But the forecast also reflects uncertainty: weather events, trade shifts, and broader macroeconomic influences (such as interest rate and fuel cost dynamics) continue to pose upside risk to food price inflation.
For foodservice operators and distributors, these projections reinforce two key strategic priorities for 2026:
Menu and contract planning aligned with projected price trends: Cost forecasts can help teams lock in favorable supplier contracts and anticipate category‐specific volatility.
Margin management through productivity and pricing agility: With food‑away‑from‑home prices still rising, albeit at a slower pace, thoughtful pricing strategies and cost control remain essential.
Taken together, the USDA’s updated outlook provides a valuable benchmark for foodservice planning as operators and supply chain partners allocate resources, manage inflation expectations, and adapt to shifting cost structures.
Economics 2026: Stats to Know
December 2025 U.S. unemployment rate: 4.4% (U.S. Bureau of Labor Statistics, January 2026)
December 2025 U.S. labor force participation rate: 62.4% (U.S. Bureau of Labor Statistics, January 2026)
December 2025 U.S. inflation rate: 2.7% (U.S. Bureau of Labor Statistics, January 2026)
December 2025 U.S. food & beverage inflation rate: 3.1% (U.S. Bureau of Labor Statistics, January 2026)
Average national gas price: $3.23/gallon (U.S. Energy Information Administration, January 2026)
Average effective tariff rate of 16.8, the highest since 1935 (The Budget Lab at Yale, November 2025)
Total American (non-housing) debt reached $5.09 trillion in Q3 2025 (Federal Reserve, January 2026)
Advance November retail foodservice & sales estimate: $735.9 billion (up 3.3% from the previous year) (U.S. Census Bureau, January 2026)
Average sales price of houses sold in U.S. (Q2) 2025: $498,000 (down 4.6% year-over-year) (U.S. Census Bureau, January 2026)
[Source: Datassential Big Picture Factors]
Regulatory
Michigan Considers Expanded Allergen Disclosure Law
Michigan lawmakers are reviewing House Bill 5402, which would require restaurants and foodservice establishments to provide written disclosure of the nine major federally recognized allergens for unpackaged foods. If enacted, allergen information would need to be clearly available at the point of ordering — including printed menus, menu boards, or digital formats such as QR codes. The proposal aims to increase transparency and reduce the risk of accidental allergen exposure for guests.
What this could mean for operators and suppliers:
Menu updates: Allergen disclosures may need to be added to printed and digital menus.
Stronger documentation: Operators will need accurate, up-to-date ingredient data from suppliers and distributors.
Training & processes: Staff education and clear internal protocols would become critical to maintain compliance.
Multi-state impact potential: While specific to Michigan, this reflects a broader national push toward clearer allergen transparency in foodservice.
While the bill remains under review, it signals growing regulatory attention on allergen communication standards across the industry.
Maryland Strengthens Allergen Disclosure Requirements for Restaurants
Maryland has enacted updates to its allergen disclosure requirements that expand how foodservice operators communicate major food allergens to guests. Under the revised state rules, restaurants and foodservice establishments must provide clear allergen information for unpackaged foods — including listing ingredients and major allergens at the point of sale. This goes beyond federally mandated labeling for packaged goods and aligns with efforts in other states to enhance safety for consumers with food allergies.
Unlike some voluntary industry practices, Maryland’s regulations now require operators to ensure allergen information is readily accessible at the point of ordering, whether through printed menus, menu boards, or digital formats such as QR codes. The law emphasizes transparency for the top allergens recognized by the U.S. Food and Drug Administration, such as milk, eggs, peanuts, tree nuts, wheat, soy, fish, shellfish, and sesame.
What operators need to know:
Menu disclosures: Allergen information must be displayed for unpackaged foods — written communication is now a compliance requirement,
Supplier data integration: Operators will need reliable ingredient and allergen information from distributors and suppliers to maintain accuracy.
Training importance: Staff must understand and be able to articulate allergen information to guests and ensure consistent communication across all service channels.
Record retention: Documentation of ingredient lists and allergen sources may be subject to inspection or inquiry.
As regulatory attention continues to grow around allergen safety in foodservice, operators across other states may increasingly see similar expectations take shape — underscoring the value of proactive allergen management systems and clear customer communication.
