Rising costs and supply chain disruptions are forcing U.S. hospitality operators to reshape everything, from what they charge diners to the equipment they invest in, according to a new study from SilverChef USA, which provides flexible equipment financing for the hospitality industry.

Over two-thirds (68%) of U.S. operators raised menu prices in the past 12 months, and nearly one in three (30%) plan to raise them again. As operating costs continue to rise, about one in four (27%) said they can’t afford to upgrade their equipment, even as their most critical appliances are often the most failure-prone.

This is according to SilverChef’s 2026 Hospitality Operator Report, developed in partnership with Leger. The report surveyed 600 American foodservice and hospitality operators to determine the top financial strains impacting their businesses today, and their outlook for the year ahead.

Profitability improves despite persistent cost increases

U.S. operators have spent the past year navigating one cost increase after another due to ongoing economic disruptions. However, many say their profitability has improved, and U.S. operators were more likely to see better margins than their Canadian peers.

Over the past 12 months:

  • The typical U.S. operator saw a median cost increase of 7.5%, consistent across every type of establishment.

  • Operators saw the steepest cost increases in food and beverage supply (66%), labor and wages (35%), and utilities (35%).

  • U.S. operators were more likely to see improved margins compared to their Canadian peers (64% in the U.S. vs. 42% in Canada).

  • Despite ongoing cost pressures, 87% of U.S. operators are optimistic about the year ahead, rising to 96%† for catering companies.

    • Meanwhile, 17%† of operators in fine dining restaurants and hotels with foodservice say they’re pessimistic.

Looking ahead, American operators point to rising food and beverage costs (57%), economic uncertainty or recession risk (39%), declining consumer spending (31%), and tariffs or supply chain disruptions (30%) as their top business threats over the next 12 months.

The most critical kitchen equipment is often the most failure-prone, yet operators can’t afford to upgrade

For U.S. operators, the equipment that breaks down most often is also the equipment they can least afford to lose. Due to ongoing financial strain, however, many operators can’t afford to upgrade equipment.

  • Cooking equipment such as ovens, ranges and fryers is the biggest bottleneck for American operators, cited by 20% of respondents, followed by point-of-sale and technology hardware (15%) and refrigeration (13%).

    • Catering operators are the most bottlenecked by cooking equipment, at 28%†.

  • Operators name cooking equipment (63%), refrigeration (59%), and food preparation equipment (32%) as the most critical to their daily operations, so the categories they can’t afford to lose are also among the most failure-prone.

  • The typical U.S. operator spends a median of $22,500 USD a year on equipment maintenance and repair.

  • Due to the high costs, about one in four (27%) U.S. operators said they want to upgrade their equipment but can’t afford it, rising to 42%† of operators in hotels with foodservice.

  • One in three (33%) U.S. operators delayed a planned equipment upgrade in the past 12 months due to costs, rising to 43%† of catering operators.

  • The upgrades that operators want the most are smart refrigeration with monitoring and alerts (45%), integrated POS and kitchen-display systems (44%), and energy-efficient cooking equipment (40%).

  • The majority (86%) of U.S. operators say the ability to change or upgrade equipment at any time, without paying full price upfront, would help their operations run more smoothly.

“When I owned my own restaurant, I financed a fryer on a credit card and money I borrowed from my parents because it was the only way I could afford it, and it wasn’t even the right size for what I needed,” said Jon Jacobs, President of SilverChef USA. “Rent-Try-Buy helps operators with flexible financing for equipment, so they don’t have to settle for undersized equipment just because it’s what they can scrape together today. They should be able to get what the business actually needs, and grow into it from there.”

Opening a hospitality business in the U.S. comes with surprise costs

Many operators face the toughest financial surprises before they even open their doors. For U.S. operators specifically, the biggest blind spots are in the paperwork required to open their business and the equipment they’ll need to operate.

  • The median cost to open a hospitality business in the U.S. is $325,000 USD.

    • The most expensive type of establishment to open is fine dining ($537,500 USD†), and the least expensive are cafés or bakeries and catering companies (both $100,000 USD†).

  • About one in four (25%) U.S. operators say their startup costs came in over budget by 10% or more. Nearly nine in 10 (89%) faced at least one surprise cost.

  • Licensing and permits (36%) narrowly outrank commercial kitchen equipment (35%) as the expense most likely to blindside a new operator, with food and beverage inventory (31%) close behind.

  • Over half (59%) of U.S. operators turned a profit within their first year, compared to 37% of their Canadian counterparts.

SilverChef’s research points to a sector that’s actively recalibrating as cost pressures mount — rethinking pricing strategies, weighing which equipment upgrades can wait, and looking for financing that can move at the same pace as the business. Flexible financing remains one of the clearest ways for operators to protect their cash flow while still investing in the equipment their business depends on.

About SilverChef USA

SilverChef USA is part of SilverChef Group, an Australian-founded hospitality equipment financier established in 1986 by equipment dealer Allan English. SilverChef’s Rent-Try-Buy® model is a flexible, 12-month rental agreement that allows hospitality operators to access the equipment they need with the flexibility to change, upgrade, or own at any time, while keeping cash flow healthy with low weekly payments that may be up to 100% tax deductible. With nearly 100,000 customers globally, 2,600+ equipment dealer partners, and more than 389 employees, SilverChef Group operates across Australia, New Zealand, the U.S., and Canada. SilverChef USA was accepted as a Foodservice Equipment Distributors Association (FEDA) Dealer Partner member in December 2025.

Methodology

This survey was conducted by Leger, the largest Canadian-owned market research and analytics company, on behalf of SilverChef Group. The study surveyed 600 American foodservice and hospitality operators and owners and 250 Canadian foodservice and hospitality operators and owners from June 22 to July 6, 2026 using Leger’s online LEO panel, which has more than 400,000 members across North America. As a non-probability sample, no margin of error can be associated with these results. For comparative purposes, a probability sample of n=600 would carry a margin of error of +/- 4.0 percent, 19 times out of 20, and a probability sample of n=250 would carry a margin of error of +/- 6.2 percent, 19 times out of 20. Respondents were asked a series of questions about operating costs, equipment financing, and economic outlook. † Figures based on subgroup samples of fewer than 100 respondents are directional only.

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