Food and Beverage Operators Maintain Confidence Despite Rising Costs and Increased Insurance Claims

The Food Liability Insurance Program (FLIP) has released its 2026 Food & Beverage Industry Trends Report, revealing a complex landscape where operator confidence persists alongside mounting financial pressures and evolving risk patterns. The report combines insights from mobile food service operators, U.S. consumer dining habits, and proprietary insurance claims data from 2025 to provide a comprehensive view of the industry’s current state and future outlook.

Despite ongoing challenges with food and labor costs, 81.7% of operators expressed confidence about their 2026 business outlook. More than 60% of businesses reported growth in 2025, and 42.3% expect their average ticket size to increase in the coming year. ‘Food and beverage operators are entering 2026 with confidence, but that optimism comes alongside real financial pressure,’ said Daryle Stafford, CEO of Veracity Insurance, FLIP’s parent company. ‘Rising food costs and tighter margins are forcing business owners to be more disciplined in how they plan for growth and protect their operations.’

Cost pressures remain widespread, with 63.3% of operators citing food costs as their largest expense increase, and 72.1% expecting food costs to rise further in 2026. In 2025, 54.6% reported that rising food and ingredient costs negatively impacted their profitability. Consumer demand shows resilience despite these price increases, with just 16% of consumers planning to dine out less in 2026. Spending per meal continues to rise, with more than 97% of consumers willing to spend $10+ per meal, up from 94% last year.

The insurance data reveals a significant shift in risk patterns, with claims increasing 32.7% year over year in 2025. A small number of high-cost incidents, particularly fires and major accident-related losses, drove a disproportionate share of total incurred dollars. The most common claim types were accidents causing damage (23.1%), auto or trailer incidents (16.4%), weather-related claims (14.2%), and fire-related claims (9.7%). The average payout of all claims was $14,158, with 72% of claims occurring during summer months. Caterers, food trucks and trailers, and farmers market vendors experienced the highest claim activity.

‘As claims become less frequent but more expensive, operators face a different risk profile than in prior years,’ Stafford added. ‘High-severity events can quickly turn into major financial losses, underscoring the need for proactive risk management and adequate insurance coverage.’ The full report, which includes detailed findings by business type, consumer dining behavior, insurance claims activity, and economic outlooks, is available online at https://www.flipinsurance.com/2026-report.

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