Wade strikes IFMA Gold. The resilience of fast-casual operators and a look at the challenging operating environment. Channel Manufacturing expands its reach. These stories and more This Week in Foodservice.

There’s been much speculation about how inflation and the other macroeconomic challenges the U.S. faces have impacted consumers and operators but some research from Datassential finally helps create a clearer picture.

A total of 44% of consumers plan to eat out just as often in the coming months, compared to 32% who plan to cutback in this area, Datassential reported in a May 16 webcast. Only 18% of consumers plan to dine out more in the coming months. When asked where they have cut back recently, 46% of consumers say it was on restaurant meals/dining out, 35% said grocery shopping and 23% said alcoholic beverages.

Turning to operators, 74% said rising food costs represents their top concern, per Datassential. A distant second on that list is labor costs at 56%. The 18-percentage point gap between these two issues clearly illustrates the growing impact inflation continues to have on operations and, what’s more, it does not show any signs of slowing down soon.

Menu prices are expected to increase 3.6% in the next six months and grocery store prices will grow 2.4% over the same period, Datassential said while citing estimates from the USDA.

Overall, it remains a challenging environment for consumers and operators alike.

Foodservice News

• Chip Wade is the recipient of the 2026 Gold Plate Award, presented by IFMA The Food Away From Home Association. Wade, who is CEO of Union Square Hospitality Group, was selected among the nine Silver Plate Award winners of the 2026 class.
• The fast casual segment remains one of the more resilient parts of the foodservice industry, per the April 2026 Placer.ai Dining Index. The Index shows visits to fast-casual restaurants grew by 1.9% year over year for the month, while they declined 1.8% at quick-service restaurants and 1.6% at full service restaurants. The study found that mid-length visits, those lasting 10 to 30 minutes, increased year over year across all three segments. Visits of less than 10 minutes declined for QSR and fast casual restaurants but increased slightly at full service restaurants. Visits of 30 minutes or longer were also down slightly at all three segments. “Consumers are engaging more selectively with dining, and the segments and brands that offer a compelling experience are pulling ahead,” the report adds.
• Corner Bakery is quietly writing an impressive turnaround story. The chain has seen its average unit volume for franchised locations grow to $2.2 million from $1.6 million in 2023, per a Restaurant Dive story. A cornerstone of this revival: an enhanced emphasis on food quality, speed of service and hospitality. The chain says it has balanced its emphasis on hospitality with modern technologies such as ordering kiosks. The blending of staff with technology helps enhance hospitality.
• After an eight-year hiatus, Dunkin will return to Canada. A Canadian company, Foodtastic, bought the rights to the chain and plans to do things differently this time around. To help drive its business in Canada, Dunkin plans to cater to a younger crowd and by offering healthier food options, per a BNN Bloomberg story.
• Reducing the workload on its servers has led to a better guest experience at Outback Steakhouse. That’s right. The chain altered its service model so there is now a four-table-per-service ratio during peak hours, per this FSR magazine story. Such an approach allows the servers to better own the guest relationship, which leads to better experiences for all involved.
• A Pizza Hut franchisee is not having a good experience with AI. In fact, the company says Pizza Hut’s Dragontail AI system cost $100 million in delivery sales and damaged operations, per a Restaurant Dive story. Franchisee Chaac Pizza Northeast, which operates 111 locations, used third-party platform DoorDash with its delivery orders. The integration of kitchen display and third-party management systems into a single software interface shifted power from store managers to delivery drives, which has led to an increase in delivery times and in Rack Times, the story notes.
• Can the shape of a coffee cup really impact the taste? The answer, surprisingly, is yes per a blog post from design firm Core77. Turns out the shape of the cup impacts the way the coffee interacts with your senses. A narrow cup, for example, tends to hold aroma near the rim, making flavor notes more focused and defined. A wide cup allows aroma to disperse more easily, creating a softer experience.
• Channel Manufacturing is expanding its presence in the Western portion of the U.S. The New York-based company opened a 17,000 square foot manufacturing facility in Phoenix to serve customers along the West coast, as well as those in the Southwest and Midwestern markets. Channel Manufacturing, which makes shelving, racks, dough boxes and other items for the foodservice industry, already has facilities in New York and Florida.
• RATIONAL has launched a dedicated video content platform for foodservice professionals. Known as RATIONAL TV offers operator education, product training, and commercial kitchen content, per a company release announcing the endeavor.

Economic News

• Inflation in the U.S. remains a sticky and persistent problem. The latest example comes courtesy of the Producer Price Index, which increased 1.4% in April, the U.S. Bureau of Labor Statistics reported. This is double the increase from March and the largest increase since 1.7% in March of 2022. Economists polled by Reuters had projected a 0.5% increase for the month, per this Yahoo! Finance story. On an unadjusted basis, the index for final demand rose 6.0% for the 12 months ended in April, the largest 12-month increase since moving up 6.4% in December 2022.
• U.S. retail and foodservice sales increased 0.5% in April compared to the previous month, per data from the U.S. Census Bureau. This was in line with economists projections, Reuters notes. Sales at foodservice and drinking places increased 2.7% from April of 2025.
• Not surprisingly, rising gas prices continue to impact consumer finances. In fact, 69% of Americans say they are now cutting back on experiences like eating out and travel, per Ipsos Consumer Tracker.