In a recent episode of Fast Casual Nation, host Cherryh Cansler sat down with Brian Choi, Managing Partner and CEO of The Food Institute, to discuss the challenges and opportunities facing the restaurant industry in 2026. With consumer sentiment at near 50-year lows and economic anxiety running high, Choi brought his Wall Street background and food industry expertise to help operators chart a course through turbulent times.
The conversation revealed a stark reality: the consumer economy is splitting. McDonald’s CEO Chris Kempczinski noted double-digit sales declines among lower-income customers, while premium brands continue to thrive. Even fast casual giants like Chipotle are feeling the pinch, with CEO Scott Boatwright acknowledging that 40% of their Gen Z customer base is pulling back on spending. Yet Choi remains optimistic, emphasizing that food and beverage is “one of the most resilient industries out there” and pointing to success stories like Cava and Shake Shack as proof that the right strategy still wins.
So what’s the winning formula? Choi advocates for going back to basics: streamlining menus, reducing operational complexity, and focusing relentlessly on consistency. He pointed to Chick-fil-A as the gold standard, noting how their unwavering commitment to quality and service creates loyalty even in tough times. Innovation doesn’t require reinventing the wheel—sometimes it’s as simple as a new sauce or a nostalgic menu throwback, like Taco Bell’s viral 90s campaign. The key is creating excitement without breaking the bank.
Social media has become the great equalizer for challenger brands. Choi recalled how his late friend Solomon Choi built 16 Handles into a fro-yo powerhouse by engaging customers directly on Facebook, even letting them vote on new flavors. This authentic connection costs nothing but creates invaluable brand loyalty. In today’s landscape, a single viral TikTok video can drive more traffic than a million-dollar ad campaign, making digital engagement essential for survival.
Looking ahead to menu trends, Choi predicts continued growth in global flavors, particularly West African cuisine, which is capturing Gen Z’s imagination. Fermented ingredients, unique heat profiles, and protein-forward options will dominate menus. With beef prices soaring to $28 per pound, expect pork and chicken to take center stage. Some operators are already blending ground beef with ground pork to maintain familiar flavors while managing costs—a pragmatic approach that resonates with budget-conscious diners.
The rise of GLP-1 drugs like Ozempic is reshaping eating behaviors, creating demand for smaller portions and higher-protein options. Choi anticipates more restaurants will follow Smoothie King’s lead in offering GLP-1-friendly menus. Plant-based dining will shift away from highly processed alternatives toward veggie-forward dishes with clean ingredients. Despite economic headwinds, the message is clear: restaurants that stay nimble, connect authentically with customers, and focus on delivering consistent value will not only survive 2026 but find new opportunities to thrive.
