Restaurant operators have never lacked resilience. Over the past few years, they’ve navigated supply chain disruptions, inflation, staffing shortages, shifting consumer expectations—and they’ve kept serving customers anyway. Now, as economic and labor pressures continue to reshape the industry, restaurant franchise leaders are increasingly turning to technology, especially AI and automation, to fuel their next phase of growth.
That’s a key takeaway from TD Bank’s recent survey of 253 restaurant and franchise professionals conducted at the 2025 Restaurant Finance & Development Conference. When asked what factors will have the most significant impact on their businesses over the next 12 months, respondents pointed squarely to AI and automation—signaling that these tools are no longer experimental or optional. They’re becoming operational necessities.
AI Is No Longer Just a Back-of-House Tool
What’s notable about the survey results is where operators believe AI can make the biggest difference. Labor efficiency, training, and scheduling were cited by 40% as the top opportunities for improvement—hardly surprising in an industry where hiring and retention remain stubborn challenges.
But AI’s role is expanding. More than a third of respondents (34%) pointed to consumer data analysis and market trend prediction, while 28% highlighted customer experience and personalization. That shift suggests AI is moving from behind the scenes into a more central role in shaping strategy and customer engagement.
Labor Shortages Continue to Shape Decision-Making
Persistent workforce challenges are driving the urgency around AI adoption. More than half of survey respondents (54%) say a shrinking labor pool is the industry’s biggest obstacle to attracting and retaining talent through 2026.
At the same time, operators are contending with broader economic and policy pressures. Participants cite recent tariffs (26%), immigration reform (25%), and shifting interest rates (10%) as key factors influencing the industry. These overlapping challenges are forcing restaurant leaders to look for tools that help them operate more efficiently and plan more confidently.
Mark Wasilefsky, Head of TD Bank’s Restaurant Franchise Finance Group, says, “As restaurant operators navigate rising costs and workforce constraints, AI is emerging as a potentially material lever for long-term growth and sustainability. From labor management to customer engagement, strategic integration of AI can streamline operations, enhance service, and strengthen margins.”
Optimism Remains High Heading Into 2026
Despite ongoing pressures, restaurant franchise professionals are not backing away from growth. In fact, optimism remains strong. According to the survey, 82% of respondents expect industry growth to remain stable or improve in 2026, and 60% of restaurant operators are confident their businesses will see positive traffic over the next 12 months.
That optimism reflects a belief that demand is still there—if operators can meet customers where they are and deliver value in the ways that matter most.
Convenience and Value Drive Growth Strategies
To capture that growth, restaurants are investing in areas that resonate with today’s consumers. Mobile ordering and value menus tied as the top growth drivers for 2026, each cited by 53% of respondents. The message is clear: Customers want convenience, speed, and affordability—and they want it consistently.
Specific food segments also stand out as having strong growth potential. Fast-casual global concepts, including Mediterranean and Asian-fusion, lead the list at 26%, followed by coffee and specialty beverages (24%) and chicken (18%). These categories combine familiarity with flexibility, making them well-suited to innovation and repeat visits.
AI as a Practical Growth Lever—Not a Silver Bullet
What stands out most in TD Bank’s findings is the pragmatic way restaurant leaders are thinking about AI. This isn’t about chasing the latest trend or replacing people with machines. It’s about using technology to solve real problems: tight labor markets, inconsistent training, unpredictable demand, and rising costs.
“The past few years have underscored just how resourceful and future-focused restaurant leaders truly are,” says Wasilefsky. “Those who embrace innovation and work with financial partners are reshaping the competitive landscape.”
The Road Ahead: Smarter Systems, Stronger Foundations
AI won’t eliminate every challenge facing the restaurant industry, but when applied thoughtfully, it can help operators reclaim time, reduce friction, and focus on what matters most: Serving customers well and building sustainable businesses.
As the industry looks toward 2026, one thing is clear. The next chapter of restaurant growth won’t be driven by guesswork—it will be powered by smarter systems, better data, and leaders willing to adapt in an industry that has always thrived on reinvention.
Rieva Lesonsky is the founder of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy: Curated Lifestyle for Unsplash+
