The quick service, fast casual and restaurant sector is facing increased competition from convenience stores and headwinds from a slowing economy, so many players plan to focus on increasing traffic by offering value and adding menu items to boost traffic and transaction totals, all while building their brand profile with new consumer segments.
“Restaurant brands that can authentically connect with consumers, adapt quickly, and create experiences worth sharing will be the ones that thrive in 2026 ,” said Lenna Yamamichi, vice president of brand creative at IHOP.
Facing rising prices and a weakening economy, cash-conscious consumers will be watching their orders carefully. Indeed, a recent survey found that by mid-2025, diners are looking for deals at a rate not seen in 50 years, since the mid-1970’s recession.
“Looking ahead to 2026, we know consumers are continuing to feel the effects of inflation and are more mindful about how they spend, especially when it comes to dining out or choosing to eat at home,” said Greg Hamilton, chief marketing officer of Little Caesars. “For those who do visit quick-service restaurants, they’re looking for deals that make sense for their wallets – and in many cases value menus and meal deals are helping keep pricing affordable.”
“The people who really double down on making an effort and making an impact are going to be the ones that will win,” added Andy Rebhun, chief marketing officer of Cava.
Besides the pressure on consumer wallets, the restaurants are up against a stronger competition from convenience stores working to shake off their “smokes and a Coke” image to become reliable meal sources. Food is now almost 28% of sales and 39% of margins at c-stores, in spite of slowing totals. The recent purchase of sandwich chain Potbelly by the C-store operator RaceTrac and 7-Eleven’s announcement of an expansion that will add 1,100 stores in the U.S. this decade is only adding to the pressure on fast food chains.
The restaurant sector will need to adapt fast in 2026, concluded Bank of America report: “While the appetite for dining out remains healthy, restaurant consumers are more selective than ever, and competition is fiercer,” the analysts wrote. “Standing out in a crowded marketplace demands delivering a differentiated value proposition as well as having the flexibility to consistently and continually adapt.”
Chain restaurants are responding with innovation, including leveraging artificial intelligence to the customer experience with better, faster and more personalized experiences. For example, Yamamichi noted IHOP has partnered with Google Cloud to add AI to online ordering, making it easier for guests to find their favorite items and discover new ones to match their taste.
“AI is going to be more of a factor” in 2026, said Cava’s Rebhum, but added that “there’s going to have to be a balance between what you do with AI and how you continue to remain authentic to your brand.” He noted Cava’s CEO Brett Schulman has said publicly that for the company AI will enhance the human experience but not replace it.
With the tough economy in mind, consumers will be shopping more selectively before placing an order.
“Traditionally, consumers have prioritized menu selection, pricing, and recommendations from friends and family when choosing where to eat. In today’s economic climate, consumers are more focused than ever on ensuring they get their money’s worth – and in food delivery, that means a heightened emphasis on social media and peer reviews, to achieve an added layer of purchasing confidence before placing an order,” said Vishwa Chandra, vice president of enterprise partnerships at DoorDash.
Serving up culture
To thrive in 2026, restaurants will need to balance offering value and an experience consumers can enjoy, say insiders. Many are breaking out of their traditional media plans to embrace social media more intently in 2026, to target both the Gen Z demographic and connect with cultural moments.
“In 2026, QSR marketing will be defined by brands that belong in culture, not just advertise in it. At Taco Bell, our purpose is to feed curiosity for the unconventional, and that means never being afraid to take bold swings,” says Taylor Montgomery, global chief brand officer of Taco Bell. “The brands that win will co-create with their fans, handing over the reins and letting them shape where the brand goes next. For us, that means staying one-of-one: relentlessly inventive, culturally fluent, and purposefully driven to turn every moment – from menu innovation to fan collaboration – into something unexpected and unforgettable.”
Restaurants will also need to pay attention to social media channels and reviews, which carry a lot of weight, especially with younger demographics, Chandra said. He cited a recent DoorDash study that found that 67% of Gen Z trust reviews from social media influencers, 46% reference food photos, and 27% consider a restaurant’s social media presence when evaluating a new dining option.
“Looking ahead to 2026, it will be critical for restaurants to maintain an active, authentic, and positive social media presence, not only to build trust with existing consumers, but increasingly as a prerequisite for attracting new ones,” Chandra said.
Yamamichi noted IHOP is pivoting to a social-first mindset, prioritizing platforms such TikTok and Instagram to engage audiences in real time using active social listening to engage with cultural moments, and create targeted content for niche audiences.
Building cultural relevance will be crucial in 2026, Yamamichi said. “Consumers gravitate toward brands that seamlessly fit into their lives and engage with relevant cultural moments,” so brands have to show up in ways that are memorable and shareable, she said.
Yamamichi highlighted IHOP’s effort on National Pancake Day 2025 as an example, when the chain set out to break the Guinness World Records title for Most Pancakes Served in a Day. “This wasn’t just a stunt – it was a way to make IHOP part of the national conversation,” she said, noting the company plans to go bigger in 2026.
Based on a recent Restaurant Insight Monitor study, Little Caesars has the highest Gen Z and millennial user base in the pizza category. Hamilton attributed this in part due to the brand tapping into areas consumers are passionate about – like gaming and football. “As we head into 2026, brands will continue to meet fans where they are, especially Gen Z and Millennial audiences,” he added.
“As we look ahead to 2026, guests continue to expect value, relevance, and personalization. These aren’t optional – they’re table stakes,” said Ellie Doty, chief brand officer of Denny’s.
Value today is about more than price, said Denny’s Doty. Guests are also increasingly seeking an emotional connection with brands, she said. Denny’s leans into diner culture and its positioning as “America’s Diner” to tell stories about customers’ lives, and will continue to do that, she said.
Targeted engagement will be a strong trend in 2026, noted Yamamichi. Brands will need to understand niche audiences and tailor efforts.
“Marketing must be platform-native, visually compelling, and tailored to drive engagement,” she said. “The days of blanket advertising are behind us.”
