MOUNT LAUREL, N.J., DEC. 10, 2025 -- Amid economic and labor pressures, restaurant franchise leaders are turning to emerging technologies to fuel their next phase of growth. AI and automation are expected to have the greatest impact on the industry over the next 12 months according to TD Bank’s survey of 253 participants at the 2025 Restaurant Finance & Development Conference in Las Vegas, Nevada.
Restaurant and franchise professionals identified labor efficiency, training and scheduling (40%) as the top area where AI can deliver meaningful improvements, followed by consumer data analysis/market trend prediction (34%) and customer experience/personalization (28%) – demonstrating AI’s growing role beyond back-of-house operations.
Labor and Economic Pressures Drive Innovation
This emphasis on AI supporting labor efficiency aligns with more than half of respondents (54%) identifying a shrinking labor pool as the industry’s biggest challenge in attracting and retaining talent through 2026. Participants also cited key macroeconomic and policy factors shaping the industry, including:
- Recent tariffs (26%)
- Immigration reform (25%)
- Shifting interest rates (10%)
“As restaurant operators navigate rising costs and workforce constraints, AI is emerging as a potentially material lever for long-term growth and sustainability,” said Mark Wasilefsky, Head of TD Bank’s Restaurant Franchise Finance Group. “From labor management to customer engagement, strategic integration of AI can streamline operations, enhance service and strengthen margins.”
Industry Optimism for 2026 Points to Continued Growth
Despite these ongoing pressures, franchise professionals remain optimistic heading into the new year. Eighty-two percent of respondents expect improved or stable industry growth in 2026 and 60% of restaurant operators are confident that their business will achieve positive traffic over the next 12 months.
To capture this growth, restaurants are investing in segments that resonate most with consumers. Mobile ordering and value menus tied as the top growth drivers in 2026 (both at 53%), reflecting strong demand for convenience and affordability. Leading food categories with the most growth potential include:
- Fast-casual global concepts, such as Mediterranean and Asian-fusion (26%)
- Coffee and specialty beverages (24%)
- Chicken (18%)
“The past few years have underscored just how resourceful and future-focused restaurant leaders truly are,” said Wasilefsky. “Those who embrace innovation and work with financial partners are reshaping the competitive landscape. By strengthening core operations and pursuing growth with intention, operators can capture emerging opportunities and build lasting momentum in a rapidly evolving marketplace.”
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TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Mount Laurel, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.
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Media Contact:
Lisa Bien
TD Bank
Corporate Communications Manager II – Corporate and Public Affairs
Lisa.Bien@td.com