At the 2026 IFA Convention in Las Vegas, a breakout session on “Shifting Tastes: How Consumer Trends Are Redefining Franchise Success” made one thing clear: Changing demographics, tighter consumer budgets, and evolving expectations are forcing franchise brands to rethink how they compete — and those that adapt strategically, without losing their core identity, will be the ones that win the next decade.

Prior to the panel taking the stage, Technomic’s David Henkes delivered a data-driven overview around what he called “five major trends influencing foodservice through 2030”:

  1. Restaurant sales growth has been modest but will accelerate slightly.
  2. Affordability and broader confidence are weighing down the industry.
  3. Geographic and segment-specific pockets of growth present outsized opportunities.
  4. Demographics are destiny; a major shift is on the horizon.
  5. Winning in this environment means investing in your brand.

Henkes noted that restaurant sales growth has been modest and is expected to accelerate only slightly. While overall sales have remained positive, he said that growth has been driven almost entirely by higher menu prices rather than increased traffic. In fact, customer visits have declined over the past several years. Henkes’ data showed that overall foodservice growth will remain subdued through 2030.

Meanwhile, consumer confidence and affordability remain significant headwinds in the restaurant space. Persistent inflation has eroded discretionary spending, and foodservice price inflation continues to outpace wage growth and overall inflation. This has led to value becoming a dominant driver of consumer decision-making.

Still, according to Henkes, geographic and segment-specific pockets of growth present opportunities. Certain MSAs in the Mountain and Southeast regions, he said, are poised for stronger expansion. “Within the top 1,500 chains, limited-service restaurants — particularly chicken, coffee, Mexican, and Asian noodle concepts — are gaining share as consumers prioritize speed and convenience over full-service dining,” he said.

He looked at demographics, noting that U.S. population growth is slowing, and by 2030, all Baby Boomers will be 65 or older. Foodservice frequency peaks between ages 28 and 33, he noted, meaning that today’s Gen Z consumers (currently 22–27) will define peak spending years in 2030. Gen Z’s preference for portability, carryout, and even eating in the car signals fewer dine-in occasions ahead. At the same time, labor pool challenges will intensify, with fewer workers available, driving closures, reduced hours, turnover, and higher costs.

The silver lining, according to Henkes, is that winning brands are investing in identity, innovation, and cultural relevance. He noted that the beverage space has emerged as a major innovation battleground. Early investments in technology and off-premises capabilities are paying dividends. However, Henkes cautioned against abandoning brand heritage during rebrands, citing the delicate balance between modernization and authenticity.

A panel discussion followed Henkes and reinforced a number of these themes with real-world examples.

Heather Neary, CEO of Taco John’s, led off the panel discussion by sharing how the brand has recently conducted a comprehensive brand survey to address equipment issues, franchisee frustrations, and guest concerns. She said the brand has recentered on its core of quality, ‘West-Mex’ differentiation and a fun personality rooted in its heritage. Reintroducing value-driven promotions like Taco Tuesday and Taco Bravo Thursday boosted sales, while a renewed vision (“To be the communities’ first choice for tacos and burritos”) strengthened ties in its smaller Midwest markets. She pointed out that Taco John’s has also embraced data-driven decision-making, refreshed marketing with an agency familiar with its legacy, and adapted training for younger workers with short-form video content.

Natalie Hamrick, SVP customer experience at Anywhere Brands, which franchises Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, and others, discussed how the brand sees today’s real estate consumers as more experience-driven and said the company has shifted its messaging and tools to reflect that. Instead of focusing purely on geography, they’ve repositioned around lifestyle, which helps agents market not just homes, but the way people want to live.

Next up was Andrea Hohermuth, chief transformation officer at Heights Wellness Retreat, who said, “You can’t have evolution without risk.” She explained how her brand expanded beyond massages into a broader $500 billion wellness space, adding services such as cryotherapy and infrared sauna based on consumer data. She cautioned brands that while evolving, complexity can derail transformation. She stressed phased rollouts, transparent communication with franchisees, and disciplined capital planning. “The biggest risk is not evolving,” she said. “If you stay static, you become optional.”

Panelists agreed that brands must stay close to customer data, clearly articulate what makes them unique, and bring franchisees along through early and frequent communication.

The message was clear: Consumer expectations will continue to shift, and franchise systems that evolve thoughtfully — without losing sight of who they are — will be best positioned to thrive in tomorrow’s landscape.

Kerry Pipes is the director, executive editor at Franchise Update Media.

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