Operations

Survey: Restaurant operators are optimistic, but equipment costs squeeze cash flow

A survey reveals that a percentage of restaurant owner/operators are optimistic, even in the face of rising costs and concerns over replacing equipment.

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September 30, 2026 by Amy Sorter — Writer and Editor, Connect Media

Summarize with

Jon Jacobs, Courtesy of SilverChef

Restaurant owners and operators said they're feeling good about the year ahead, even as rising food costs, economic uncertainty and equipment expenses are putting the squeeze on their businesses.

A survey conducted by SilverChef USA and research firm Leger found that 87% of participants were at least somewhat optimistic about the next 12 months. At the same time, 66% reported significant increases in food and beverage costs, while 35% cited increases in both labor and utilities. Additionally, 64% of U.S. respondents said their profit margins improved over the past year, although 45% described the improvement as slight. At the same time, 68% said they had increased menu prices during the past 12 months.

The survey, which was conducted online June 22-July 6, surveyed food service and hospitality operators, 24% of whom were fast-casual operators.

"The optimism caught my attention," Jon Jacobs, SilverChef's president of U.S. operations, told FastCasual. "The confidence is supported, in part, by recent performance, with 64% reporting that their profit margins improved over the past year."

Cash can be an issue

The more complicated story is what operators are doing with their optimism (and in some cases, the extra revenue).

Four out of five U.S. respondents said they want to upgrade or replace equipment, with more than half actively planning or budgeting for it. Another 27% said they'd like to upgrade but can't afford it; 42% said planned equipment upgrades were canceled due to cost.

Jacobs said that the disconnect between demand and ability to spend was one of the study's more notable findings.

"Cash flow is the practical constraint we see most often," he said. "Equipment purchases have to compete with food, payroll, utilities, rent and other operating expenses."

Additionally, 86% of participants said that changing or improving equipment without a high upfront cost would allow their kitchens to operate more smoothly.

Jacobs said operators generally want to minimize large upfront payments to help ensure predictable weekly or monthly costs. Rentals or lease-to-own arrangements can help keep cash available for operations.

The importance of equipment

Cooking equipment was considered the most important for daily operations, with 20% of participants citing it as their largest operational bottleneck. Point-of-sale and tech hardware followed at 15%, with refrigeration coming in at 13%.

Jacobs said older equipment can become increasingly expensive to operate due to repeated service calls, increased energy use and downtime.

"If a fryer or refrigerator fails during a busy shift, an operator could be forced to cut menu items, slow service or deal with food spoilage," he said.

The survey found that the median U.S. operator spends $22,500 annually on equipment maintenance and repair.

"A repair may solve today's problem, but repeated service calls, higher energy use and unplanned downtime can keep adding costs," Jacobs said.

The ability to adapt equipment is also essential, given a restaurant operator's shifting needs. "The menu may change, volume could grow, or a unit might turn out to be the wrong fit for the space," Jacobs said.

Rethinking the opening budget

The survey found that 89% of U.S. operators were surprised by at least one startup cost, with licensing and permits topping the list at 36%. Thirty-five percent of respondents said commercial kitchen equipment was more expensive than anticipated, while 31% said food and beverage inventory generated higher-than-expected costs.

As a result, while 49% of respondents said costs came in on or under budget, 46% said their startup costs exceeded their original estimate. Jacobs said that some new operators are so focused on launching their restaurants that they don't have enough cash in the months that follow.

Furthermore, "a common mistake is building the equipment budget around the purchase price alone," Jacobs said.

"The equipment has to fit the site, be installed and work with the available power, gas, plumbing and ventilation."

Expenses also include permits and payment for opening inventory, which can arrive at the same time as the equipment, he said.

Operators and the future

The survey also found that food and beverage costs remained the top perceived threat across the U.S. markets studied, while the mix of other concerns varied by market. Tariffs and supply-chain disruptions were more prominent in New York and Chicago, while declining consumer spending ranked more prominently in California, Texas and Atlanta.

"Those differences matter when an operator decides whether to repair, replace or finance equipment because local cost pressures affect how much cash the business can commit," Jacobs said.

As such, the research indicates a sector recalibrating in the face of cost pressures, as owner-operators rethink pricing strategies, determine which equipment upgrades can wait, and figure out how to keep plenty of cash on hand.

About Amy Sorter

Amy W. Sorter is an award-winning journalist, copywriter and content producer. Sorter has generated quality articles, blogs and thought leadership pieces for multiple industries during her many decades as a writer. Her byline has appeared in local and national publications including the American Business Journal, Connect CRE, Bankrate, CURE Magazine and the Dallas Morning News.

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