What’s on school foodservice operators’ minds? Which restaurant chains are considered smart growing brands? How will the U.S. economy fare in 2026? Answers to these questions and more, This Week in Foodservice.

The financial and operational challenges that school foodservice operators face remain diverse and dynamic, according to a study from the School Nutrition Association.

In SNA’s SY 2025-26 School Nutrition Trends Report, 99% of participating school foodservice operators report needing more funding, with 79% expressing an “extreme need” for increased funds to achieve their goals. But it’s more than money they need. Specifically, 94% say they need more staff and 95% need equipment.

Nearly all respondents reported their programs are challenged by the cost of food (98%), labor (95%) and equipment (95%). Compared to last year’s survey, the percentage of respondents citing “significant” challenges with food, labor and equipment costs has all increased.

Foodservice News

• Beverage concepts remain a good bet for franchisees. For proof, look no further than Franchise Times’ “Fast & Serious” study, which ranks the smartest growing brands. Restaurant chains account for roughly half of the list, including five beverage-related concepts. Restaurants in the top five include 7 Brew (no. 1), Dave’s Hot Chicken (no. 2) and HTeaO (no. 5).
• Although under new ownership, Potbelly’s goals remain the same. The fast-casual sandwich chain plans to grow to more than 2,000 units over time, per a C-Store Dive report. The chain has 450 units at the moment and anticipates breaking the 500-unit barrier this year. Then the chain will add another 100 units in 2027. RaceTrac doesn’t plan to put a Potbelly shop in every one of its c-store locations. But, if there is an overlap between Potbelly and RaceTrac customers, then the sandwich concept could be considered for a co-development location.
• Chick-fil-A’s latest menu innovation efforts feature the trendy combination of beverages and nostalgia. Drawing inspiration from soda fountain favorites from yesteryear, the chain now offers floats, which include fizzy beverages layered with ice cream, and frosted sodas, which are hand-spun with ice cream and a fountain beverage.
• M Crowd Restaurant Group has acquired bankrupt chain Razzoo’s Cajun Cafe, per a FSR Magazine report. As part of the deal, nine Razzoo’s locations were closed, leaving the concept with 11 units, including 10 in Texas. M Crowd’s other full-service operations include Mi Cocina, Monkey Bar, The Mercury, Sushi at The Mercury and Vaqueros.
• Sprinkles Cupcakes closed up shop on December 31, 2025, per multiple published reports, including this one from the Today Show. The bakery was known for selling decadent treats from vending machines around the company. Candace Nelson founded Sprinkles in 2005 and sold it to a private equity firm in 2012.
• Wonder completed its previously announced acquisition of Sweetgreen’s Spyce robotics division, per a Restaurant Business story. Sweetgreen received $100 million in cash and $86.4 million in stock. Those departing Sweetgreen for Wonder include Spyce co-founders Michael Farid, Kale Rogers, Brady Knight and Luke Schlueter, who started the company in Cambridge, Massachusetts, in 2015. This deal was originally announced in November.
• Yadav Enterprises’ acquisition of Del Taco is complete, per a company release. Del Taco will remain headquartered in Lake Forest, Calif. In addition to being a large Jack in the Box, Denny’s and TGI Friday’s franchisee, Yadav Enterprises is also the franchisor for Taco Cabana and Nick the Greek.
• Restaurant industry performance improved for the second consecutive month in November. The National Restaurant Association’s Restaurant Performance Index came in at 100.0 for the month, a 0.2% increase from October. This also marked the second consecutive monthly gain as the study reached its highest level since June. November’s RPI increase was driven by an uptick in the outlook for sales: 41% of operators expect their sales will be higher in 6 months. At the same time, sales and traffic levels remained dampened in November, which illustrates the continuation of challenging business conditions for restaurants.

Economic News

• What’s in store for the U.S. economy in 2026? The Conference Board expects “real GDP growth to weaken amid a fragile balance of resilient labor markets and softening consumer demand due to tariff-induced inflation.” Its latest projections call for GDP to grow 0.8% in the first quarter of 2026, followed by real growth rates of 1.5%, 1.4% and 1.4% for the remaining three quarters.
• How are tariffs impacting the U.S. economy? The results may surprise you. An analysis from Axios says the tariff rate is roughly half what the White House suggests and chalks that up to four reasons. Shipment lags represent the first reason. Imports are not subject to higher taxes while in transit. Second, exemptions result in lower tariff rates for key goods, like semiconductors and other electronic items carved out by the Trump administration. Third, compliance with the U.S.-Mexico-Canada trade agreement has surged, meaning goods imported from those two countries largely do not face the high tariffs imposed by the administration. Finally, enforcement and evasion can result in a lower actual rate.
• It seems the 2025 holiday season lived up to expectations. Visa said holiday spending grew 4.2% compared to last year, per a Retail Dive story. And Mastercard said U.S. consumers increased their spending 3.9% between Nov. 1 and Dec. 21. These results were in line with projections.