People gotta eat – but they are increasingly choosing to not eat at some of the US’s longtime leading restaurant chains.

Fast casual restaurant chain casualties halfway through 2026 include mall parking-lot fixtures such as Smokey Bones, Bahama Breeze and On the Border.

Applebee’s remains operational nationally, but major franchise groups have filed for bankruptcy in 2026, including an operator controlling more than 50 restaurants across Florida, Georgia and Alabama entering Chapter 11.

These long-familiar restaurant brands have announced sizeable nationwide closures:

• Carl’s Jr.
• Denny’s
• TGI Fridays
• Noodles & Co.
• Wendy’s
• Pizza Hut
• Five Guys
• Arby’s
• Starbucks

Rising prices for food coupled with high gas prices have consumers looking for meal solutions outside of traditional restaurant offerings. Among the economic and consumer trends driving restaurant closures in 2026 are:

• higher labor costs
• food price inflation
• reduced consumer spending
• consumer debt
• oversaturation of casual dining
• declining dine-in traffic
• competition from delivery
• rising rent and real estate costs.

Foodservice market research firm Technomic’s 2026 Consumer Trends Report finds 32% of consumers try new flavors to treat themselves, a five percentage point decline from 2023. Close to half (43%) of consumers said not wanting to pay for something they weren't sure they were going to like was a leading deterrent to trying new flavors.

Key findings from Technomic’s 2026 Consumer Trends Report include:

• Less than half (48%) of consumers said that sandwiches from most restaurants are a good value due to menu price increases and declining portion sizes. Nearly two-thirds (64%) of consumers said sandwich portion sizes have decreased at restaurants.
• Consumers define good value as receiving a fair portion of high-quality ingredients for a reasonable price. When it comes to ingredient quality, meat/protein is deemed most important, defining the sandwich’s value.
• 46% of overall consumers usually skip at least one meal a day or replace it with snacks. Chipotle, for one, has noticed, offering its High Protein Menu featuring a High Protein Cup. The cup is a 4-ounce serving of meat (Adobo Chicken or Steak) designed as a convenient snack option, offering 32 grams of protein and priced around $3.99.

Meat and poultry product innovation for foodservice

Spam hot dogs for foodservice anyone? Spam brand’s reimagining of the classic hot dog combines two iconic American food items at a time when consumer interest in the crucial role meat plays in their diets is surging. Datassential reports that meat menu penetration is rising again, as consumer and operator interest in plant-based meat alternatives have seen growth slow.

Makers of meat and poultry solutions for foodservice are listening to consumers and operators seeking to add value in their protein menu options.

“Even with skyrocketing prices, diners still want meat on the menu,” said Barb Stuckey,  chief new product strategy officer for Mattson, “So, the first challenge is finding a great supplier who is reliable. The second is to have a great chef who knows how to optimize meat and poultry as menu drivers, but not as drivers of price. This means putting entrees together that lean on craveable sauces, salsa and other condiments to offset smaller portions.”

Value-added proteins for foodservice -- pre-marinated, sous vide, heat-and-serve, pre-seasoned – can help operators optimize their staffing as well as elevate the customer dining experience, Stuckey said.

“Value-added proteins are a godsend when labor is lacking,” she said. “Sous vide delivers amazing precision, and marinades can tenderize and flavor bland foods like chicken breasts. But they're still in need of other high-value friends on the plate: value-added sides, sauce and toppings.”

US consumers’ taste buds are increasingly worldly as well, with the trend toward globally inspired flavor profiles influencing protein product development for foodservice as Millennial and Gen Z consumer preferences increasingly shape demand.

“More people -- especially young people -- are open to trying new proteins, as long as they come with a ‘new-to-me’ experience,” Stuckey said, citing consumers’ increasing comfort level with lamb as one example.

“Ground lamb is doing well,” she said. “It's cheaper than beef and can offer much more depth of flavor. Plus, meatballs and shawarma are already beloved foods, and lamb versions can make the restaurant feel more authentic.”

Technomic’s market research suggests family-style restaurants should promote complex dishes that are difficult and time-intensive to make at home. Improved value perception via menu design that highlights quality, portions and value-driven combinations can help restaurants address consumer price-sensitivity in traditional casual-dining settings.