Food businesses are starting 2026 with something that has not always been easy to find in recent years: momentum.
Across multiple food and beverage sectors, business owners are reporting strong demand and growing confidence in the year ahead. At the same time, the operating environment still requires thoughtful decision-making as businesses navigate rising ingredient costs and evolving customer expectations.
These were some of the insights shared during a recent event hosted by Food Liabilility Insurance Program (FLIP) exploring findings from our 2026 Food & Beverage Industry Trends Report. This annual report draws from survey responses of over 1,000 food business operators, 600 U.S. consumers, and real insurance claims data from 2025.
During the discussion, Clint Bishop (Vice President of Marketing at Veracity Insurance Solutions) and Kyle Jude (FLIP Program Manager at Veracity Insurance Solutions) discussed what the numbers reveal about the opportunities and strategies shaping the year.
State of the Industry: Optimism & Growth
Bishop kicked off the discussion by noting that, because FLIP has conducted this research for the past three years, we’re not just getting a snapshot, but “we can actually track how [this data] has changed over time.”
One of the clearest messages across all sectors is that food and beverage entrepreneurs believe in the future of their businesses.
More than 81% of food business owners reported feeling confident about 2026, compared to 79% last year. Additionally, more than 60% reported growth in 2025 versus 52% experiencing growth in 2024. These numbers reflect steady demand across a wide range of food business models, from mobile vendors to manufacturers.
For many business owners, that confidence is rooted in experience. Over the past several years, they’ve learned how to adapt to changing ingredient costs and shifting consumer habits.
“The businesses that are succeeding right now are the ones that stay flexible,” Bishop explained. “Operators are learning how to adjust pricing, refine menus, and focus on what works best for their customers.”
Growth is also part of the story for many business owners, as more than half of entrepreneurs (54.8%) surveyed said they plan to expand operations in 2026. This includes adding events, increasing marketing efforts, launching new products, and growing into new markets.
Key Takeaway
The food and beverage industry is poised for resilient, experience-driven growth in 2026. The businesses leading the charge are the ones that have learned to adapt and plan for expansion.
Consumer Behavior Trends: Strong Support for Food Businesses
Overall, consumers are still dining out and seeking new experiences heading into 2026.
According to FLIP’s consumer research, 63.7% of Americans said they dine out at least once a week. Nearly a third of them (28%) reported dining out more often in 2025 than they did the previous year.
While customers are paying closer attention to prices than they did several years ago, they are still willing to spend on enjoyable dining experiences. 56.3% reported spending between $15–$30 per meal, and 20.3% said they typically spend over $30.
For food business owners, this means value and customer experience matter more than ever.
As Bishop put it, “Price sensitivity does not mean people are not spending. It means they want to feel good about the choices they are making.”
Many food businesses are responding to these expectations by creating seasonal menus, bundling items to increase ticket size, and creating social media-worthy dishes.
Bishop said the concern for consumers is less about how much they’re spending, and more about what bang they’re getting for their buck. “If there’s a way that [you] can deliver value in terms of portion size or a non-food part of the dining experience, I would highly encourage that,” he said.
Key Takeaway
Dining-out demand remains strong, but success depends on value, not just quality eats. If customers feel good about what they’re spending money on — even if it isn’t the cheapest option — they’ll continue to spend.
Events Play a Critical Role for Many Food Businesses
Across several segments, events emerged as one of the most powerful drivers of revenue and customer attraction. Events are now the largest source of new customers for food trucks (37%), surpassing social media (27%) and location-based traffic (18%).
Alcohol-serving businesses reported a similar pattern, with more than 80% of their revenue coming from events and private parties. Additionally, farmers market vendors are also leaning into event-driven selling. 39% reported attending nine or more events throughout peak market season.
Bishop noted that events offer more than just immediate revenue. “Every event is an opportunity to be seen,” he advised.
For entrepreneurs looking to grow this year, treating events as both a sales channel and a valuable marketing opportunity can help build stronger, long-term customer relationships.
Key Takeaway
In 2026, events are more than a source of supplemental income. They’re a primary driver of revenue, visibility, and customer acquisition.
Insurance Claims: The Risks Underlying the Optimism
Alongside positive momentum in the industry, recent insurance claims data helps food entrepreneurs better understand the risks that come with growth.
According to Jude, claims among FLIP policyholders increased 32.7% year-over-year (YOY) in 2025. Additionally, the average claim payout reached $14,158; a shockingly high cost compared to the average monthly insurance premium of roughly $61.
Looking at the frequency and severity of claims going into 2026, it’s clear that insurance can play a huge role in keeping your business on track to meet your goals.
“Not every [business] that’s growing is updating their risk profiles, at least on an annual basis,” Jude noted. “Without updating your risk profiles to match your growth, you have a very good chance of being underinsured.”
The most common claims filed during 2025 included:
- Accidents causing damage (23.1%)
- Vehicle or trailer incidents (16.4%)
- Weather-related losses (14.2%)
- Fires (9.7%)
- Equipment damage or food spoilage (9%)
- Theft (7.5%)
Many of these claims occur during peak operating periods, with roughly 72% occurring during the bustling summer months.
“People assume their general liability policy will cover them for everything, but unfortunately, that’s not true. There is no one-size-fits-all,” Jude warned.
He strongly advised all food and beverage entrepreneurs to assess their risks heading into 2026 to determine if they need to expand or update their coverage.
Because of the use of AI in cyberattacks, like data breaches, Jude noted that most businesses have a hard time keeping up their security defenses. As a result, he considers “cyber liability insurance, behind general liability insurance, the most important coverage you can get.”
Key Takeaway
Optimism and growth in the food and beverage industry are strong, but without the proper coverage in place, one incident can derail everything. The lesson is not to slow down growth, but to make sure it’s supported by the right insurance.
Looking Ahead at 2026
As the year unfolds, the overall picture for food and beverage businesses remains largely encouraging. Demand continues to support business owners across multiple segments, and entrepreneurs are finding new ways to connect with customers via events and unique offerings.
Success in 2026 will likely come from balancing this growth mindset with disciplined decision-making.
Entrepreneurs need to manage food costs, focus on high-performing events, build a loyal customer base, and make sure their insurance coverage keeps up as business expands.
As Jude noted during the discussion, the numbers make the importance of preparation clear.
“When you compare a $14,000 average claim to a $61 monthly premium, it really puts risk into perspective,” said Jude.
For food business operators across the country, the early months of 2026 suggest the industry’s momentum is continuing. With steady demand and resilient entrepreneurs behind it, this year is shaping up to offer meaningful opportunities for those who stay adaptable, focus on long-term growth, and evaluate their risk profiles honestly.
Hungry for more data and insights? Watch the recording and download your copy of the 2026 Food & Beverage Industry Trends Report today!
Alex Hastings
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.
Seattle-based copywriter and (WA) licensed insurance agent Alex Hastings leverages her experience as a lover of fast-casual food, baked goods, and iced oat milk lattes. She holds a B.A. in Creative Writing from Western Washington University. Before working at Veracity, she was a retail copywriter at Zulily and an English language teacher in South Korea. Alex is fully trained on FLIP insurance coverages and writes content that connects food and beverage business owners with the policies they need.