The restaurant industry is rethinking some of its most deeply ingrained practices—from how we pay and retain employees to how we build relationships with guests. This week, we’re looking at new approaches to compensation, smarter ways to turn diners into regulars and what operators can do to build stronger teams. Plus, the latest restaurant trends and a few surprising shifts—from year-round outdoor dining to wineries finding new ways to keep people coming back.

But first, Food and Wine’s restaurant of the year has a very unique labor model (i.e., dishwashers make $70K a year, etc).

Trend alert. Ranch dressing is having a renaissance on restaurant menus. 

Power serve. Pickleball courts are a fast-growing destination for both sports and dining.

Al fresco forever. NYC’s mayor signs bill making year-round sidewalk cafes legal.

Rising star. Food delivery has become increasingly lucrative for movie theaters.

Shelling out. Popular homegrown NYC taco chain gets private equity infusion.

When margins are tight, a new POS shouldn't pile on a monthly software bill too. Toast's Starter Kit starts at $0 a month, giving you an all-in-one restaurant system with no monthly software fee. Here's what you get:

A modern setup that keeps your fixed costs down.

What do your employees actually value? Rather than relying solely on higher wages, operators are increasingly focusing on workplace culture, career development, scheduling, communication and meaningful benefits to attract and keep workers in an increasingly competitive labor market.

Why it matters: Retention starts well before an employee considers leaving. Creating predictable schedules, clearer paths for advancement and a workplace where people feel valued can reduce the constant costs and disruption of rehiring. The goal is to build a team that wants to stay—not continually solve the same staffing problem. (Restaurant Dive)

As some U.S. restaurants move away from tipping, they’re raising menu prices and using the additional revenue to pay employees higher, more consistent wages. Restaurants including San Francisco’s La Cigale and Boston’s Nightshade Noodle Bar are experimenting with no-tip models, arguing that transparent pricing and stronger base pay create a fairer system.

Why it matters: Eliminating tipping can mean higher menu prices but also a different approach to compensation, retention and guest expectations. The model may help narrow pay disparities between front- and back-of-house workers, while giving employees more predictable income. The challenge is convincing diners to accept higher prices upfront. (BBC)

Restaurants often mistake reservation data for a complete customer database, overlooking the other diners at each table. Identifying more of the people who actually experience a restaurant can create opportunities for meaningful follow-up, repeat visits and stronger relationships—without turning hospitality into an intrusive data-collection exercise. Interact with all the guests at the table, not just the person making the reservation.

Why it matters: Restaurant owners already spend heavily to attract new customers, but previous diners may be a more valuable audience—especially when tables are empty. Finding simple, voluntary ways to stay connected with the people who have actually dined can make marketing more targeted, encourage repeat visits and reduce reliance on constantly finding new guests. (Modern Restaurant Management)

The number of jobs created by restaurants in August, leading all sectors. (Nation’s Restaurant News)

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The Prep is written by Kelly Dobkin and edited by Bianca Prieto.