March 2026
Mike’s Take: From the Road
What I’m hearing from restaurant operators—and why it matters
By Mike Popella, Vice President, Business Development, DMA
One of the most valuable parts of my role at DMA is getting out on the road and spending time directly with restaurant operators, leadership teams, and brands evaluating their next phase of growth. These conversations are honest, practical, and remarkably consistent across regions.
In this new recurring feature, ‘Mike’s Take’, I’ll share what I’m hearing firsthand — what operators are asking, what they’re questioning, and what ultimately drives their decisions. Here’s a snapshot of a few conversations that have stood out recently.
Mike’s Take: “Why DMA?”
Recently, a prospective partner asked me a question that stopped me in my tracks:
“Why wouldn’t everyone want to be part of DMA?”
My answer was simple: What’s not to want?
DMA offers a distribution solution that brings together the best of both worlds — the local strength and flexibility of regional, independent distributors with the scale, consistency, and oversight of a national network.
What operators appreciate most is the access. You’re not removed from your distribution partners — you’re connected to them — while still having the DMA team actively involved to ensure your brand standards, expectations, and performance requirements are being met. That balance is something many operators tell me they’re missing elsewhere.
Mike’s Take: Can DMA Compete at Scale?
Another question I hear often is how DMA stacks up against the largest broadline distributors — especially when it comes to capacity and performance.
The reality is, DMA is intentional about how we grow.
We’re selective about the brands and chains we partner with. If we’re in discussions, it’s because we see growth ahead and we believe our network is the right fit to support that expansion.
From a performance standpoint, the numbers speak for themselves. Across the KPIs operators care most about, DMA is performing above industry standards:
99.62% fill rate
90%+ on-time performance
Accuracy and compliance standards that exceed typical benchmarks
That level of execution is the result of alignment between DMA, our distributor partners, and our customers. All working toward the same goals.
My Bottom Line
What I continue to hear, from current partners and new conversations alike, is that operators want flexibility without sacrificing accountability, and strong relationships without giving up scale.
That’s exactly what DMA was built to deliver.
I’ll be sharing more from the road in future editions as these conversations continue.
A March of Momentum
As March comes to a close, momentum across foodservice remains measured but active. Operators are continuing to fine‑tune footprints, distributors are accelerating technology investments to protect service levels, and suppliers are navigating shifting cost pressures while pushing for targeted growth.
Here’s a look at the stories shaping foodservice right now — and what they could mean for all of us.
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Industry News
Technomic’s Market of the Month - Colorado Springs
Colorado Springs Market Spotlight: Steady Growth with Affluent Potential
Colorado Springs is emerging as a high-potential foodservice market, combining steady growth with a strong, affluent consumer base. According to Technomic’s Ignite Company market-level insights, the market includes 2,300+ locations and is projected to reach nearly $2.5B in 2025 sales, with continued momentum driven by 5.1% annual growth and a 6.3% forecast for 2026.
While it ranks as the 68th-largest U.S. market by sales, Colorado Springs offers a balanced mix of scale and sustainability — making it an attractive option for brands looking to expand in a stable, less saturated environment.
Affluence & Lifestyle Shaping Demand
Colorado Springs’ demographics point to strong spending power and evolving preferences, particularly among younger, higher-income consumers.
Key demographic insights:
Population: 768K (0.3% of the U.S.)
Over-indexing households earning $100K–$149K
Over-indexing ages 25–34
Over-indexing White population
These dynamics create opportunities for brands that deliver quality, convenience, and experience-driven dining.
If you’d like to take a deeper dive into the data, trends, and operator implications, email Cassie Norris, cassie.norris@dmadelivers.com, for more information.
[Source: Technomic Ignite Company Industry Market Size Data]
Building Stronger Restaurant Teams in Today’s Labor Market
As labor challenges persist across the industry, operators are rethinking how they train, engage, and retain employees. A recent Food Institute piece outlines five key strategies restaurants are using to build stronger, more resilient teams in today’s environment.
Start with clear outcomes: Define the guest experience first, then align team behaviors and training to support it.
Simplify training programs: Focus on a few high-impact behaviors rather than overwhelming teams with too many standards.
Make training continuous: Reinforce key initiatives regularly instead of treating training as a one-time rollout.
Prioritize engagement over compliance: Interactive, memorable training (“edutainment”) improves retention and execution.
Leverage internal voices: Highlight top-performing team members to build credibility and drive adoption.
The takeaway: In a tight labor market, success is less about adding complexity and more about creating clear, scalable systems that teams can consistently execute.
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Industry News (Continued)
Execution, Not Expansion, Defines Early‑Spring Strategy
Industry analysis entering mid‑March shows largely flat restaurant sales trends, with price continuing to contribute more to revenue than traffic. According to Wray Executive Search industry commentary, labor, insurance, and operating costs are still rising faster than topline growth — creating a margin‑challenged setup for many operators.
As a result, brands are prioritizing:
Footprint optimization over unit growth
Operational consistency over menu complexity
ROI‑driven initiatives instead of headline expansion
For distributors and suppliers, these conditions elevate the value of reliability, diversified account exposure, and service flexibility as operator footprints continue to evolve.
Pricing Pressure and Value Strategies Shape Early‑Spring Operator Decisions
As operators move through late Q1, updated industry reporting highlights how brands are balancing price pressure with value positioning. According to Grocery Dive, analysis of the USDA’s February food price outlook shows grocery inflation continuing to cool faster than restaurant pricing — reinforcing the competitive tension operators face as consumers weigh eating out versus eating at home.
While the article focuses on food prices broadly, the implications for foodservice remain clear. Operators are navigating an environment where:
Restaurant prices are expected to rise faster than grocery prices through 2026
Consumers remain highly value‑driven and selective in visit frequency
Menu strategy, portioning, and value messaging are increasingly central to traffic defense
For distributors and suppliers, this dynamic reinforces the importance of supporting operators with products, pack sizes, and pricing structures that align with value‑focused menu strategies — particularly as brands work to protect margin without sacrificing guest perception.
Store News
Black Box Intelligence warns restaurant closures could accelerate in 2026
New data from Black Box Intelligence indicates that as many as 15% of U.S. restaurants could face closure risk in 2026, with full‑service concepts most exposed. The analysis highlights continued pressure from elevated operating costs, uneven traffic recovery, and margin compression, reinforcing why many brands are prioritizing footprint optimization and execution over expansion. Full Story
Cracker Barrel sees gradual improvement despite ongoing traffic challenges
Cracker Barrel reported modest operational improvements in Q2, though guest traffic remains under pressure. The brand continues to focus on menu adjustments and experience updates to drive recovery. Full Story
JRI Hospitality acquired 43 Freddy’s Frozen Custard restaurants
JRI Hospitality, the largest Freddy’s franchisee, completed the acquisition of 43 locations, further consolidating ownership within the system. The move reflects continued franchise‑level portfolio redistribution across restaurant brands, as operators with scale seek efficiency, consistency, and operational leverage. Full Story
PepsiCo to shutter California Frito‑Lay distribution warehouse
PepsiCo announced it will close a Frito‑Lay warehouse in California, shifting operations to other nearby facilities as part of a broader effort to better align production and distribution with demand. The closure will result in layoffs and reflects continued network rationalization across food and beverage manufacturers navigating changing consumption patterns. Full Story
P.F. Chang’s reports early progress in turnaround strategy
P.F. Chang’s CEO shared that the brand is seeing early wins from its turnaround plan, including improved guest experience initiatives, menu simplification, and operational focus. The strategy is centered on driving traffic and stabilizing performance across its restaurant base. Full Story
Store News (Continued)
Sonic sells 78 company‑owned restaurants to franchisee KBP Foods
Sonic Drive‑In sold 78 company‑owned restaurants to KBP Foods, further accelerating its transition toward a franchise‑led operating model. The transaction underscores ongoing portfolio realignment across QSR brands as companies emphasize asset‑light strategies and franchisee‑driven growth. Full Story
SPB Hospitality sells Logan’s Roadhouse to SSCP Management
SPB Hospitality has sold Logan’s Roadhouse to SSCP Management, marking another portfolio shift within casual dining as operators continue to reposition brands for long‑term growth. SSCP, an experienced multi‑brand restaurant operator, said the acquisition will allow Logan’s Roadhouse to operate with a more focused ownership structure while continuing to invest in performance, operations, and unit‑level execution across the system. Full Story
TGI Fridays accelerates international growth with Kenya hotel deal
TGI Fridays announced a new agreement to expand in Kenya through a hotel partnership, reinforcing its strategy to grow internationally through asset-light models and global franchise relationships. Full Story
Wingstop expands share repurchase program amid strong performance
Wingstop authorized an additional $300 million share repurchase program, signaling confidence in its financial position and long-term growth strategy as it continues aggressive domestic and international expansion. Full Story
Executives on the Move
Leadership changes across major brands continue to reflect where the industry is investing for the future:
Bel Group appointed former Impossible Foods CEO Peter McGuinness to lead North America, overseeing brands including Babybel and Laughing Cow. Full Story
Brinker International promoted George Felix to Chief Marketing Officer, elevating the longtime brand leader to oversee marketing strategy across Chili’s and Maggiano’s. Full Story
General Mills named Jonathan Ness as Chief Supply Chain Officer, elevating a longtime executive to oversee global sourcing, manufacturing, and logistics. Full Story
Ferrero named Jean‑Baptiste Santoul to lead WK Kellogg following its $3.1B acquisition, tasking him with accelerating cereal growth. Full Story
First Watch Restaurant Group announced the retirement of CFO Mel Hope and outlined a leadership transition plan to ensure continuity across finance and strategy functions. Full Story
Jimmy John’s promoted its Chief Marketing Officer to President, streamlining brand leadership amid menu and marketing evolution. Full Story
Krystal promoted a Senior Operations Executive, Amanda Hyde into a Chief Operating Role, realigning leadership under parent ownership. Full Story
Portillo’s appointed Jennifer Pecoraro‑Striepling as Chief Development Officer, tasking her with leading real estate strategy, restaurant development, and long‑term growth initiatives as the brand continues national expansion. Full Story
Red Lobster expanded its executive leadership team, naming Brad Hill Chief Marketing Officer and Kristen Briede Chief Information Officer to support the brand’s next phase of operational focus. Full Story
Texas Roadhouse appointed Lisa Ingram to its Board of Directors, adding senior retail and brand leadership experience as the company continues disciplined growth. Full Story
Supply Chain News
Technology Investment Continues to Accelerate Across Foodservice Distribution
Foodservice distributors are continuing to invest in automation, forecasting, and AI‑enabled systems designed specifically for foodservice complexity. In March, Trax Technologies highlighted a $5.8 million funding round for food‑specific supply chain AI — signaling growing investor confidence in purpose‑built platforms rather than generic logistics tools.
The focus of these investments includes:
Temperature‑controlled inventory intelligence
Forecasting tied to perishability and shelf‑life windows
Automation that supports tighter service windows without added labor
For distributors, these tools are increasingly viewed as resilience infrastructure, supporting service expectations while managing labor availability and cost‑to‑serve pressures.
Rising Diesel Prices Add Pressure to Foodservice Distribution Networks
Diesel fuel prices moved higher again through early March, re‑introducing transportation cost pressure across foodservice distribution. According to the U.S. Energy Information Administration (EIA), the national average on‑highway diesel price increased week‑over‑week in mid‑March, with regional spikes more pronounced in the West Coast and Gulf Coast markets.
For foodservice distributors, fuel represents a meaningful variable cost — particularly across multi‑drop routes and lower‑density delivery networks. As fuel prices rise, distributors are increasingly focused on managing cost‑to‑serve through route optimization, delivery frequency discipline, and fuel surcharge mechanisms baked into customer agreements.
Key implications across the supply chain include:
Greater emphasis on route density and order consolidation
Continued review of fuel surcharge structures tied to EIA benchmarks
Increased coordination with operators around ordering cadence and delivery windows
For operators and suppliers, rising fuel costs reinforce the importance of forecasting accuracy and efficient ordering to support reliable, cost‑effective distribution.
Economic Pulse
Menu Price Growth Slows, but Pricing Pressure Remains
Menu inflation showed modest signs of slowing in February, rising 0.3% month‑over‑month, according to the National Restaurant Association. On a twelve‑month basis, menu prices are up 3.9%, well below the 2023 peak — but still elevated enough to influence guest behavior and operator strategy.
The data suggests operators are becoming more deliberate with pricing, balancing margin protection against traffic risk. Key tactics include:
Narrow, targeted increases rather than system‑wide price hikes
Bundled meal offers designed to protect entry‑level price points
Increased reliance on supplier collaboration to manage volatile inputs
This reinforces the importance of supplier and distributor alignment around forecasting accuracy and ingredient stability.
Regulatory Update
Senate Democrats Propose Bill Targeting Meatpacking Industry Consolidation
In late February, Senate Democrats introduced new legislation aimed at reshaping the U.S. meatpacking industry as part of broader efforts to address food price inflation. The proposal would prohibit large meat processors from owning or controlling multiple protein categories — such as beef, pork, and poultry — requiring companies to divest certain operations if enacted.
Supporters of the bill argue that consolidation within meat processing has reduced competition, limited market access for producers, and contributed to higher food prices. Major industry groups, however, have pushed back, warning that forced divestitures could disrupt supply chains, reduce efficiency, and ultimately increase volatility across protein markets.
While the proposal faces significant legislative hurdles and is unlikely to advance quickly, it reflects growing regulatory attention on food supply concentration and pricing dynamics. For operators, distributors, and suppliers, the bill serves as a reminder that protein sourcing, supplier relationships, and network diversification remain important considerations — particularly as policymakers continue to scrutinize the structure of key food categories.
