The most important meal (for margins)

It’s another wild week in the hospitality world—from shifting consumer habits to ghost kitchen traffic jams to policy crackdowns rattling workers in D.C.—there’s never a dull moment where restaurants are concerned. Meanwhile, brands big and small are experimenting: Taco Bell launched a Y2K throwback, female entrepreneurs are steering $2.3B in growth and restaurants are doubling down on breakfast options. 

But first, NYC’s fancy restaurants have a theft problem.

Locking in. D.C. restaurant workers are terrified to come to work due to ongoing ICE raids.

Throwback alert. Taco Bell is launching another Decades menu, this time inspired by Y2K.

Jam session. Ghost kitchen delivery traffic is upsetting L.A. residents… a lot.  

Bossing up. Female entrepreneurs are helping to turn around struggling restaurant brands, leading to $2.3B in growth.  

Walking on eggshells. A widespread egg recall sickens people in 14 states.

Restaurant owners should take a little help from their friends

Numbers in a slump? Everything from rising costs, policy uncertainty and consumer caution is hurting restaurants everywhere. But some operators are staying afloat by tapping into winning strategies from other sectors, like fine-dining meal bundles, to-go-only menus, VIP loyalty programs, digital ordering with personalized messaging and social-media friendly atmospheres that boost engagement and drive traffic. 

Why it matters: These adaptable tactics offer strategic options to engage your customers, even in downturns. By repackaging concepts like meal deals, loyalty initiatives and digital outreach, operators across segments can deepen loyalty, increase off-peak sales and maintain relevance in a volatile, competitive landscape. (Nation’s Restaurant News)

Vegan-only restaurants are struggling

Despite plant-based trends, many vegan restaurants—including Unity Diner, The Vurger Co., and Eleven Madison Park—are shutting down or reintroducing meat. Rising costs, inflation, shrinking margins and skepticism over processed plant foods have made standalone vegan venues less viable. Broader restaurant chains that offer vegan options more affordably are drawing customers away.

Why it matters: If you’re thinking of launching a business, note that catering exclusively to niche audiences like vegans can be financially risky. Success now lies in inclusive, flexible menus that resonate widely. Offering well-crafted vegan options within a broader omnivore framework may be more sustainable and profitable than operating an exclusively plant-based concept. (The Guardian)

Why leaning into breakfast is good business

In a post-pandemic landscape, many restaurants dropped breakfast or shifted to upscale brunch—yet 9-5 workers miss simple morning venues. For busy professionals, a relaxed place for breakfast meetings, free of alcohol and time constraints, holds unique appeal. Reviving the old-school "power breakfast" could help fill in the gap.

Why it matters: Reinstating a straightforward breakfast service offers a strategic edge: it attracts daytime business traffic, fosters a comfortable social environment and differentiates from brunch-heavy competitors. For your business, investing in a reliable breakfast experience could unlock consistent daytime foot traffic and cater to professionals seeking morning meeting spaces. (Food & Wine)

75%

The number of restaurant orders estimated to be delivery or takeout on average. [NRA]

Anthony Bourdain had big love for this tiny Japanese restaurant 

Why baked goods shine even as snacking declines

Wonder refreshes brand and expands restaurant selection

McDonald’s is bringing back its Extra Value Menu

Fall-friendly desserts from 16 chains

Thanks for reading today's edition! You can reach the newsletter team at editor@theprep.co. We enjoy hearing from you.

Interested in advertising? Email us at newslettersales@mvfglobal.com

Was this email forwarded to you? Sign up here to get this newsletter once a week.

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