🔒Friday Food Insider: Rising costs, workforce pressures seen weighing on US restaurant industry in 2026

The restaurant industry is poised for a year of measured growth, though a cooling labor market, cost pressures and cautious household spending will remain challenges. Operators remain cautiously optimistic despite uneven traffic and rising expenses. More than nine in 10 restaurants cited food, labor and other operating costs as major challenges, and 42% said they were not profitable last year, according to the National Restaurant Association's 2026 State of the Restaurant Industry report. Even so, restaurants remain woven into American culture, with the majority of people continuing to prioritize dining out, takeout and delivery, even when budgets tighten. While demand for dining out remains strong, millennials and Gen Z consumers are driving growth in takeout and delivery.

The restaurant outlook for 2026

Total restaurant and foodservice sales are projected to reach $1.55 trillion, with more than 100,000 jobs added this year. Employment is forecast to climb to 15.8 million positions. The industry workforce will continue to grow, though many have found it challenging to find experienced managers and chefs. Many restaurant owners will be turning to technology to streamline operations, reduce expenses and allow staff to focus more on consumer experience. Operators will focus on investments in innovative solutions such as digital ordering and payments, and loyalty programs.

Recent closures

In the last year, dozens of restaurant closures across Maine illustrated the challenges facing operators nationwide. Rising costs, labor shortages and cautious consumer spending are contributing to several businesses closing their doors or changing their business model. Here is a list of some of the more recent closures:

• Sweetgrass Winery & Distillery in Union closed on Jan. 15, 2026
• Blue Lobster Urban Winery in Portland closed on Jan. 31, 2026
• Quanto Basta in Portland closed on Jan. 5, 2026
• Mast Landing in South Portland closed in December 2025.
• Leda in Portland closed in October 2025.
• Low Stakes in Portland closed in October 2025.
• Bar Futo in Portland closed in November 2025.
• Susan's Fish N Chips in Portland closed in October 2025.
• Black Bear Brewing Co. in Orono closed in September 2025.

Reader feedback

What new restaurants in other parts of the state should be on our radar? The Mainebiz Food Insider wants to hear from you. Contact Alexis Wells at awells@mainebiz.biz.