What does it take to build a thriving restaurant? Sometimes it means looking beyond the immediate challenges—whether that’s rising costs, evolving technology or keeping your team engaged—and thinking about the bigger picture. This week, look at how you can build a stronger operation by investing in your people, understanding your costs and approaching new technology strategically, without losing sight of what makes hospitality human.

But first, while Mexican food in the U.S. is booming, it’s more complicated for the immigrants behind the cuisine.

Everything bagel latte, anyone? Mashup dishes are everywhere right now.

The next chapter. Is it worth it to do a restaurant cookbook anymore?

Cracking up. A sweeping egg recall is affecting food businesses in the South and Southwest.

One for the books. Resy has launched reservations booking within ChatGPT.

Al fresco era. A new bill passes to allow outdoor dining in NYC year-round.

You can’t make your employees “care” through rules or accountability alone. Discretionary effort emerges when employees feel seen, respected, coached and valued. Managers shape that experience through everyday interactions, particularly recognizing good work, modeling hospitality and creating an environment where employees want to contribute beyond their basic responsibilities.

Why it matters: The guest experience often reflects the employee experience. For operators, that means improving hospitality isn’t only about service standards—it starts with management. Consistent recognition, respectful coaching and genuine attention can encourage employees to take initiative, help colleagues and create memorable guest experiences. The payoff is a stronger culture without another elaborate program. (Nation’s Restaurant News)

Restaurants may have little chance of directly receiving refunds from tariffs struck down by the Supreme Court because most operators didn’t pay tariffs directly; distributors and suppliers did. The refund process requires proof that tariffs were paid, making reimbursement difficult for restaurants unless suppliers, manufacturers or other supply-chain partners share recovered funds.

Why it matters: Operators shouldn’t count on tariff refunds to offset higher costs, but they should monitor suppliers and distributors for potential reimbursements. Any recovered funds could help offset ongoing food and labor inflation. The broader lesson: restaurants need greater visibility into supply-chain costs and should understand how tariffs affect what they pay. (Modern Restaurant Management)

Restaurant leaders should move beyond viewing AI as simply a tool for automating tasks or cutting labor. Instead, operators should consider how AI can reshape decision-making, employee roles and the guest experience. The right conversation centers on strategy, responsible implementation and determining where technology can genuinely create value.

Why it matters: The AI question shouldn’t be “What can we automate?” but “Where can AI make the business better?” That means identifying operational pain points, improving efficiency without sacrificing hospitality and involving employees in implementation. Restaurants that approach AI strategically may gain an advantage without allowing technology to undermine the human experience. (QSR Magazine)

in the U.S. restaurant and lodging sector in June—the lowest level since August 2020. (National Restaurant Association)

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