A closer look at the impact of tariffs on the foodservice industry. Another operator will offer drone delivery. Two emerging concepts plan for a growth spurt. Plus, a closer look at stagflation.

How tough is it out there for restaurant operators? One chain plans to send cash back to its franchisees.

Subway will send the equivalent of 10% of a franchisee’s average weekly sales for the first half of the year to operators in its system, per a Restaurant Business report.

Technomic estimates Subway’s unit volumes averaged $490,000 per location, which would suggest an average weekly sales of about $9,420. And 10% of that would be $942 per restaurant, the story added.

The chain positioned this as a “one-time reinvestment” into its franchisees’ businesses.

Restaurant News

• Now that widespread tariffs have kicked in, what impact will they have on the foodservice industry? Sean Kennedy of the National Restaurant Association provides a 90-second update in this video. While everyone knows about the impact on food and beverages, Kennedy also says to be on the lookout for tariffs impacting paper goods and furniture, too. There’s no doubt the tariff talk continues to impact restaurant design-build projects. In fact, 44% of restaurant development + design readers say the constantly shifting nature of the tariff talk has been difficult or complicated to navigate in their work. Specifically, 33% said the most meaningful impact tariffs had on their projects was raising prices.
• Multiconcept operator GoTo Foods is the latest company to offer drone delivery. It’s doing so in the Texas markets of Frisco, Ft Worth and Plano as part of a partnership with DoorDash, per a company release. Participating brands include Auntie Anne’s, Jamba, McAlister’s Deli and Schlotzsky’s. GoTo Foods feels the initiative gives its brands expanded reach into high-growth suburban areas with delivery times measured in minutes.
• Texas Roadhouse’s sibling concepts are ready to hit the road. The company plans to hit the accelerator next year with its plans to grow its Bubba’s 33 sports bar concept and fast-casual chain Jaggers. Bubba’s has 53 units open at the moment and could experience “double-digit” openings next year, per multiple published reports, including this one from FSR Magazine. In the coming year, Jaggers could add eight units, some of which will be franchised.
• What does it take to run a $14 million food and retail business? Hop City Beer & Wine shared a few trade secrets with Eater. Not surprisingly, there’s a lot of training and communication involved. From training managers at multiple locations to quarterly breakouts on guest service, the Atlanta-based brewery and restaurant focuses a lot of time and attention on its people.
• Bloomin’ Brands plans to expand its “turnaround test” program for Outback Steakhouse, per a Nation’s Restaurant News story. One key aspect of the plan is a smaller menu that aims to streamline kitchen processes and deliver a more consistent dining experience.
• A grant from the U.S. Department of Labor will help support a National Restaurant Association Education Foundation training initiative. The $4 million grant will “reach more than 400 justice-involved adults across six states with training, credentialing, and job placement in the restaurant and hospitality industry,” per a NRAEF release. The organization’s Hospitality Opportunities for People (Re)Entering Society (HOPES) program is active in nine communities: Los Angeles; Dover, Georgetown and Wilmington, Del.; Boston and Worcester, Mass.; Cleveland; Pittsburgh, Pa. and Nashville. With a specific focus on adults aged 18 or older, the program will “support their transition from justice-involvement to meaningful employment through tailored industry training, credentialing, job placement and mentorship, and career pathway opportunities.”
• Facility Concepts Inc. has fully integrated its six brands into one. The manufacturer of commercial furniture and millwork has spent the past 20 years acquiring such brands as Table Logix, SurfaceTech, Classico Seating, ProLam Products, Tabb Logistics and IWI-International Woodworking, Inc. These brands will all now go to market under the Facility Concepts name, per a company release.
• Flexibility is the name of the game today when it comes to foodservice design. Of course, doing that is often easier said than done. A Ricca Design project for a California supermarket provides a good example of how to create a test kitchen that allows the operator to bring in staff from its various locations for training and to test equipment, menu items and more, as the FCSI Consultant reports.
• Kudos to Burkett Restaurant Equipment & Supplies for raising $37,555 in support of the National Multiple Sclerosis Society. The Ohio-based dealer’s Mike Burkett Memorial Golf Outing honors the legacy of the company’s founder, Mike Burkett, who passed away in 2021 after a 34-year battle with multiple sclerosis. Since becoming a memorial fundraiser in 2021, the outing has generated more than $137,000 for the NMSS’ mission to cure MS and empower those living with the disease to live their best lives.

Economic News

• Is the U.S. economy heading into a period of stagflation? It’s starting to look that way, per a CNBC story. Stagflation means there’s lower economic growth paired with steeper price increases. Inflation continues to trend upward (more on that in a minute), while job creation in the U.S. continues to trend downward. The CNBC piece delves deeper into what stagflation is, when it has happened in the U.S. before and why economists are concerned.
• Inflation increased 2.7% for the 12 months ending in July 2025, per data from the U.S. Bureau of Labor Statistics. The Consumer Price Index increased 0.2% for July, which is 0.1% less than June. July’s performance was better than what some economists had projected, added a CNCB story. It continued to cost more to dine out as the food-away-from home index increased 0.3% for the month while the food-at-home index (grocery prices) declined 0.1% for the month.
• Is the mood on main street getting a little better? The latest NFIB Small Business Optimism Index seems to point in that direction. The index posted a 1.7-point increase in July for a reading of 100.3. This is greater than its 52-year average of 98. That said, small business owners do seem a little wary about the future, with the Uncertainty Index increasing by eight points from June resulting in a July reading of 97. Labor remains the top problem for small business owners.
• Confidence among business leaders improved in the third quarter, but their outlook remains cautious. Data from The Conference Board’s “Measure of CEO Confidence” came in at 49 for the third quarter of 2025, which is 15 points greater than the previous period. Any reading of less than 50 means there were more negative than positive responses submitted. “All three components of the measure improved from deep pessimism to near neutral,” added a spokesperson from The Conference Board.
• Looking ahead to 2026, U. employers expect the raises they grant employees will be in line with what they are receiving this year, per a Fortune Magazine story citing a Payscale study. Business leaders participating in the story expect workers' base pay to go up 3.5% next year, which is 0.1% less than in 2025.