Cutting costs without cutting corners

If 2025 taught restaurants anything, it’s this: Work smarter, not harder.

This week, we explore how equipment data and IoT monitoring are unlocking real cost savings, why 2026 will demand smarter, centralized tech systems to manage labor and operations, and how top independents are proving that culture and people power remain competitive differentiators. From automation to authenticity, these stories reveal the evolving toolkit operators need to protect margins, motivate teams and stay ahead in a rapidly shifting industry.

But first, here are the U.S. restaurants that defined dining this year.

Power plays. The 10 biggest tech moves and deals in the restaurant industry in 2025.

That’s a wrap. People are driving for hours to try this bacon-wrapped hot dog in California.

Top brass. Check out Eater’s award-winning restaurants of 2025.

Not so easy. Restaurants in NOLA prepare for immigration sweep.

In the bag. A $4.6M build-out is underway for Uchiko’s first Maryland restaurant.

To improve your restaurant’s financial performance, monitor your equipment data

Restaurants that are using connected-equipment data—from HVAC units to fryers—are dramatically cutting costs and boosting efficiency. For example, one 1,000-location brand saved $20 million in energy bills and cut electricity usage by 21% after monitoring and fixing faulty compressors and heat-load issues.

Why it matters: For restaurant owners, this demonstrates a powerful margin-boosting tool: leveraging Internet of Things (IoT) and equipment data to control hidden costs. By proactively monitoring kitchen and HVAC gear, operators can reduce energy waste, avoid unexpected breakdowns and reinvest savings into labor, food quality or expansion. (Modern Restaurant Management)

What’s next for restaurant tech in 2026, according to the experts

What do restaurant-tech experts expect in 2026? Widespread automation, smarter labor and demand forecasting and tech-driven guest experiences. Emphasis is on tools that streamline operations, unify POS, ordering, inventory and delivery systems—giving operators clearer visibility into costs, performance and customer behavior.

Why it matters: For restaurant operators, this signals a turning point: tech is becoming critical, not optional. Investing in integrated, future-ready systems can boost efficiency, reduce waste and improve consistency. Early adoption may offer a competitive edge, helping restaurants scale, manage labor pressures and stay agile as customer expectations shift rapidly. (QSR Magazine)

How the top independent U.S. restaurants are using people power to succeed

America’s top 100 independent restaurants are leaning into “people power.” Rather than relying solely on menu or price tactics, these high-performing independents invest deeply in staff culture, community engagement and memorable events—turning their teams and patrons into advocates, not just customers.

Why it matters: For restaurant owners, the lesson is clear: operational excellence and customer loyalty often start with internal culture. Prioritizing your staff and building genuine relationships with community and guests can drive retention, reduce turnover costs and create a virtuous cycle of quality, word-of-mouth and repeat business—a competitive advantage in a crowded market. (Restaurant Business)

94%

The percentage of diners who say they’re likely to share their meal when dining out. (Resy)

A legendary Palm Springs restaurant is for sale, recipes included

Danny Meyer celebrates 40 years of NYC’s Union Square Cafe

How 2026 will impact restaurant winners and losers

The dining experience that’s common in Europe but not the U.S.

Why seniors make great restaurant employees

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The Prep is written by Kelly Dobkin and edited by Lesley McKenzie.