Study: rising costs force U.S. Restaurants to raise menu prices and delay critical equipment upgrades. September 15, 2026 | 6 min to read DALLAS, TX - Rising costs and supply chain disruptions are forcing U.S. hospitality operators to reshape everything from what they charge diners to the equipment they invest in, according to a new study from SilverChef USA, which provides flexible equipment financing to restaurants and foodservice businesses. Over two-thirds (68%) of U.S. operators raised menu prices in the past 12 months, and nearly one in three (30%) plan to raise them again. As operating costs continue to rise, about one in four (27%) said they can't afford to upgrade their equipment, even as their most critical appliances are often the most failure-prone. The findings come from SilverChef's 2026 Hospitality Operator Report, developed in partnership with Leger. The report surveyed 600 American foodservice and hospitality operators to determine the top financial strains impacting their businesses today and their outlook for the year ahead. Profitability improves Despite persistent cost increases. U.S. operators have spent the past year navigating one cost increase after another due to ongoing economic disruptions. However, many say their profitability has improved, and U.S. operators were more likely to see better margins than their Canadian peers. Over the past 12 months: * The typical U.S. operator saw a median cost increase of 7.5%, consistent across every type of establishment. * Operators saw the steepest cost increases in food and beverage supplies (66%), labor and wages (35%), and utilities (35%). * U.S. operators were more likely to report improved margins than their Canadian peers, at 64% in the U.S. versus 42% in Canada. * Despite ongoing cost pressures, 87% of U.S. operators are optimistic about the year ahead, rising to 96% among catering companies. * Meanwhile, 17% of operators in fine dining restaurants and hotels with foodservice are pessimistic. Looking ahead, American operators identify rising food and beverage costs (57%), economic uncertainty or recession risk (39%), declining consumer spending (31%), and tariffs or supply chain disruptions (30%) as their top business threats over the next year. The most critical kitchen equipment is often the most failure-prone. For U.S. operators, the equipment that breaks down most often is also the equipment they can least afford to lose. Due to ongoing financial strain, however, many operators can't afford to upgrade equipment. Cooking equipment such as ovens, ranges, and fryers is the biggest bottleneck for American operators, cited by 20%, followed by point-of-sale and technology hardware (15%) and refrigeration (13%). Among catering operators, cooking equipment is an even greater bottleneck, at 28%. Operators name cooking equipment (63%), refrigeration (59%), and food preparation equipment (32%) as the most critical to their daily operations. As a result, the categories they can't afford to lose are also among the most failure-prone. Due to the high costs, about one in four (27%) U.S. operators who want to upgrade their kitchen equipment say they can't afford it. That figure rises to 42% among operators in hotels with foodservice. One in three (33%) U.S. operators delayed a planned equipment upgrade in the past 12 months because of cost, rising to 43% among catering operators. The upgrades operators want most are smart refrigeration with monitoring and alerts (45%), integrated POS and kitchen-display systems (44%), and energy-efficient cooking equipment (40%). The majority (86%) of U.S. operators say the ability to change or upgrade equipment at any time without paying the full price upfront would help their operations run more smoothly. "When I owned my own restaurant, I financed a fryer on a credit card and money I borrowed from my parents because it was the only way I could afford it, and it wasn't even the right size for what I needed," said Jon Jacobs, President of U.S. Operations at SilverChef. "Rent-Try-Buy helps operators with flexible financing for equipment, so they don't have to settle for undersized equipment just because it's what they can scrape together today. They should be able to get what the business actually needs, and grow into it from there." Opening a hospitality business in the U.S. Comes with surprise costs. Many operators face the toughest financial surprises before they even open their doors. For U.S. operators specifically, the biggest blind spots are in the paperwork required to open their business and the equipment they'll need to operate. The median cost to open a hospitality business in the U.S. is $325,000. The most expensive type of establishment to open is fine dining, at $537,500, while the least expensive are cafés or bakeries and catering companies, both at $100,000. About one in four (25%) U.S. operators say their startup costs came in over budget by 10% or more, while nearly nine in 10 (89%) faced at least one surprise cost. Licensing and permits (36%) narrowly outrank commercial kitchen equipment (35%) as the expense most likely to blindside a new operator, with food and beverage inventory (31%) close behind. Despite the challenges, more than half (59%) of U.S. operators turned a profit within their first year, compared with 37% of their Canadian counterparts. SilverChef's research points to a sector that is actively recalibrating as cost pressures mount - rethinking pricing strategies, weighing which equipment upgrades can wait, and looking for financing that can move at the same pace as the business. Flexible financing remains one of the clearest ways for operators to protect their cash flow while still investing in the equipment their businesses depend on. About SilverChef USA. SilverChef USA is part of SilverChef Group, an Australian-founded hospitality equipment financier established in 1986 by equipment dealer Allan English. SilverChef's Rent-Try-Buy(R) model is a flexible, 12-month rental agreement that allows hospitality operators to access the equipment they need with the flexibility to change, upgrade, or own it at any time, while keeping cash flow healthy with low weekly payments that may be up to 100% tax deductible. With nearly 100,000 customers globally, 2,600+ equipment dealer partners, and more than 389 employees, SilverChef Group operates across Australia, New Zealand, the U.S., and Canada. SilverChef USA was accepted as a Foodservice Equipment Distributors Association (FEDA) Dealer Partner member in December 2025. Methodology. This survey was conducted by Leger, the largest Canadian-owned market research and analytics company, on behalf of SilverChef Group. The study surveyed 600 American foodservice and hospitality operators and owners and 250 Canadian foodservice and hospitality operators and owners from June 22 to July 6, 2026, using Leger's online LEO panel, which has more than 400,000 members across North America. As a non-probability sample, no margin of error can be associated with these results. For comparative purposes, a probability sample of n=600 would carry a margin of error of +/- 4.0%, 19 times out of 20, while a probability sample of n=250 would carry a margin of error of +/- 6.2%, 19 times out of 20. Respondents were asked a series of questions about operating costs, equipment financing, and economic outlook. Figures based on subgroup samples of fewer than 100 respondents are directional only.

Study: as operating costs climb, nearly half of Canadian restaurants plan for more menu price hikes, trade-offs on critical equipment upgrades. Business Wire Published Sep 15, 2026 EconoLease's 2026 Hospitality Operator Report found that restaurants' most critical equipment breaks down the most, and many operators say they can't afford to upgrade or replace it VANCOUVER, British Columbia - Canadian restaurants are facing mounting cost pressures, reshaping everything from menu prices to equipment investments, according to new research from EconoLease, a leading Canadian provider of equipment financing solutions for the hospitality industry. The majority (80%) of Canadian operators have raised menu prices in the past 12 months, while nearly half (49%) plan to raise them again over the next year. Ongoing financial strain is forcing hard trade-offs, with about half (46%) of operators delaying a planned equipment upgrade in the past year because they can't afford it, even though it's critical to their business. Top Stories Interested in more newsletters? Browse here. This is according to EconoLease's 2026 Hospitality Operator Report, developed in partnership with Leger. The report surveyed 250 Canadian foodservice and hospitality operators to determine the top financial strains impacting their businesses today and their outlook for the year ahead. Rising costs are putting more pressure on profits The past year has been marked by continued economic disruption, increasing operating costs for restaurants already working with thin budgets. Compared to their U.S. peers, fewer Canadian operators saw profitability improve. Over the past 12 months: * The typical Canadian operator reports a median overall cost increase of 7.5%, but three types of establishments - cafés or bakeries, fast-casual, and full-service or casual dining restaurants - each report a higher median increase of 15.5% . * Operators saw the steepest cost increases in food and beverage supply (64%), labour and wages (55%), and rent and occupancy (32%). * Fewer Canadian operators saw improvement in their margins compared to their U.S. peers (42% in Canada vs. 64% in the U.S.). * Despite the pressure, 83% of Canadian operators feel optimistic about the year ahead, though the results are mixed across the different establishment types. * Fine dining operators (89% and full-service or casual dining operators (88% are most optimistic, while 27% of franchise operators are pessimistic, roughly double the national pessimism rate of 14%. Over the next 12 months, Canadian operators' top business threats are rising food and beverage costs (55%), economic uncertainty or recession risk (41%), labour shortages or rising wages (37%), declining consumer spending (35%), and tariffs or supply chain disruptions (19%).Operators can't afford to fix the equipment they need most Every restaurant depends on working, reliable equipment to serve its communities. However, many operators can't afford to fix their most critical equipment, increasing their risk of lost profit when that equipment breaks down during service. * Cooking equipment such as ovens, ranges, and fryers is the biggest bottleneck for operators, cited by 28% of respondents, followed by refrigeration (14%). * Operators name refrigeration (60%), cooking equipment (58%), and point-of-sale and technology hardware (38%) as the most critical to their daily operations, so the categories they can't afford to lose are also among the most failure-prone. * The typical Canadian operator spends a median of $22,500 CAD a year on equipment maintenance and repair. * With the high price tag, 29% of operators said they want to upgrade their equipment but can't afford it, and 46% delayed a planned equipment upgrade in the past year due to costs. * The upgrades that operators want the most are energy-efficient cooking equipment (44%), smart refrigeration with monitoring and alerts (41%), and integrated POS and kitchen-display systems (37%). * The majority (80%) of Canadian operators say the ability to change or upgrade equipment at any time, without paying full price upfront, would help their operations run more smoothly. "I ran a café of my own before I ever worked in financing, so I understand the risks when a piece of equipment fails, or you've outgrown your current appliances, and you don't have the cash to fix it or upgrade," said Tyrone Ho, President of EconoLease. "As bills continue to pile up, operators need the flexibility to get the equipment when they actually need it and to adjust as their business changes. That's the problem Rent-Try-Buy was built to solve." Opening a hospitality business in Canada comes with surprise costs The financial pressure begins before operators ever open their doors, with many overshooting their budgets as they face surprise costs. * The median cost to open a hospitality business in Canada is $325,000 CAD, with café or bakery, fast-casual, and full-service or casual dining operators all reporting the same median startup cost. * The most expensive types of establishments to open are hotels with foodservice ($750,000 CAD and franchise operations ($750,000 CAD. Meanwhile, the least expensive is a catering company at $212,500 CAD . * Opening a café or bakery in the U.S. is cheaper than in Canada ($325,000 CAD in Canada vs. about $139,000 CAD in the U.S.). * More than one in four (26%) Canadian operators said their startup costs exceeded their original budget by 10% or more, while 88% were surprised by at least one startup cost. * Commercial kitchen equipment (41%), fit-out and renovations (37%), and rent, lease, and loan deposits (28%) were the expenses most likely to catch operators off guard. * Only 37% of Canadian operators turned a profit within their first year, compared to 59% of their U.S. peers. Despite persistent cost pressures, the findings show that Canadian operators are focused on optimizing their cash flow through smarter pricing strategies and equipment investments. As they navigate higher expenses, equipment needs, and significant startup costs, access to flexible financing options can help businesses preserve cash flow while continuing to invest in the tools they need to operate and grow. About EconoLease EconoLease is part of SilverChef Group, an Australian-founded hospitality equipment financier established in 1986 by equipment dealer Allan English. SilverChef's Rent-Try-Buy(R) model is a flexible, 12-month rental agreement that allows operators to get the hospitality equipment they need, with the flexibility to change, upgrade or own the equipment at any time. With nearly 100,000 customers globally, 2,600+ equipment dealer partners, and more than 389 employees, SilverChef Group is making business dreams a reality across Australia, New Zealand, the U.S., and Canada. For more information, visit www.econolease.com. Methodology This survey was conducted by Leger, the largest Canadian-owned market research and analytics company, on behalf of SilverChef Group. The study surveyed 600 American foodservice and hospitality operators and owners and 250 Canadian foodservice and hospitality operators and owners from June 22 to July 6, 2026 using Leger's online LEO panel, which has more than 400,000 members across North America. As a non-probability sample, no margin of error can be associated with these results. For comparative purposes, a probability sample of n=600 would carry a margin of error of +/- 4.0 per cent, 19 times out of 20, and a probability sample of n=250 would carry a margin of error of +/- 6.2 per cent, 19 times out of 20. Respondents were asked a series of questions about operating costs, equipment financing, and economic outlook. Figures based on subgroup samples of fewer than 100 respondents are directional only. 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