EXECUTIVE CONNECTION

In This Month's Issue:

• Developing Bench Strength Before You Need It
• What Restaurant Leaders Are Watching Closely in 2026: Insights from an Executive Pulse Survey
• Restaurant Executive Movements
• Restaurant Financials
• The Restaurant Franchise Landscape in 2026: A Compelling Growth Platform for Private Equity and Strategic M&A
• The Effects of Winter Blasts End, Eventually
• New Opportunities
• National Restaurant Association Industry Job Growth Report
• Restaurant Industry Summary Report

Developing Bench Strength Before You Need It

By Kevin Stockslager, Managing Partner, Wray Executive Search

At the executive level, bench strength is rarely discussed until it becomes painfully relevant.

A VP of Operations resigns three months before peak season. A CFO leaves midway through a refinancing. A Chief People Officer burns out just as the brand crosses 100 units. In each case, the organization scrambles—not because the leader was irreplaceable, but because there was no credible internal successor and no prepared external alternative.



In the restaurant industry, where execution risk is high and leadership transitions ripple quickly to the field, executive bench strength is not a “nice-to-have.” It is a governance issue, a growth enabler, and increasingly, a valuation driver.

What Restaurant Leaders Are Watching Closely in 2026

Insights from an Executive Pulse Survey

Even with all the data available in the restaurant industry, some of the most valuable insight still comes from direct conversations with leaders who are making decisions in real time.

To better understand how restaurant executives are thinking about 2026, we asked a small group of senior leaders a series of open-ended questions about challenges, strategies, leadership priorities, and the role of AI in their organizations.

While the response group was intentionally limited, the themes were strikingly consistent and telling.



Here’s what restaurant leaders say is shaping the year ahead.

Restaurant Executive Movements - February 2026

Dine Brands Appoints Two Directors with Significant Industry Experience to Board

Starbird Appoints Greg Levin as Chief Executive Officer to Lead National Expansion

CEC Entertainment Names Scott Drake President and CEO

National Restaurant Association and National Restaurant Association Educational Foundation Name 2026 Boards

Women’s Foodservice Forum Appoints Leading Foodservice Industry Executive Kelli Valade President & CEO

Shake Shack Appoints Jim Taylor as Chief Commercial Officer

4×4 Capital Acquires Bob Evans Restaurants, LLC from Golden Gate Capital to Enhance Growth

RAVE Restaurant Group, Inc. Reports Second Quarter 2026 Results

Chipotle Announces Fourth Quarter and Full Year 2025 Results

Darden Restaurants Completes Exploration of Strategic Alternatives for Bahama Breeze

Brinker International Reports Second Quarter of Fiscal 2026 Results and Updates Fiscal 2026 Guidance

FAT Brands Inc. Files Voluntary Chapter 11 Petitions to Bolster Capital Structure

By Ray Kelley, Managing Partner, Wray Executive Search

As private equity firms and strategic acquirers look ahead to 2026, the restaurant franchise sector continues to stand out as one of the most compelling platforms for scalable growth, capital efficiency, and disciplined value creation. After several years of operational volatility, cost inflation, and capital market recalibration, the franchise model is reasserting its structural advantages, particularly for investors seeking predictable cash flows, expansion optionality, and professionalized governance.

While challenges remain, the overall outlook for restaurant franchising in 2026 is decisively positive. For well-capitalized sponsors and experienced M&A operators, the coming cycle presents a window to consolidate, optimize, and scale high-quality franchise systems with greater clarity than at any point since the pre-pandemic era.

By John Gordon, Pacific Management Consulting

While we were lucky in December, the usual winter blast had the expected result. Sales fell off the cliff in the second half of January and into February, with the first week of February an ice/snow disaster. On a nationwide basis, sales were down about 8% for the 2 week period, with traffic down even more. The blast was about a week late, with the third week of January typically gets hit. This decline was steeper than the long term normalized weather models at minus 3-4% with ice snow conditions.

At the ICR Conference in January and the Q4 earnings calls to date February 6, every brand presented some mix of guest, revenue, expense, CAPEX and liquidity initiatives. We saw some very quality items and will remain “cautiously optimistic." Time will tell of course. A small group of brands continue to do well, but then one sees clumps at around zero, minus 2-3% and then a block of publics such as YUM components, KFC US (moderately down) and Pizza Hut US (solidly down) at minus 5 to minus 10% same store sales.

CEO - West Coast

VP Technology - Los Angeles

Check out the latest Industry Job Growth from National Restaurant Association

Restaurants added 150k jobs in 2025

Restaurants continued to add jobs at a healthy pace in December, even as the overall labor market continued to cool. 

Eating and drinking places added a net 27,200 jobs in December on a seasonally-adjusted basis, according to preliminary data from the Bureau of Labor Statistics (BLS). That was up from a gain of 6,800 jobs in November and represented the 6th consecutive monthly increase in restaurant employment. 

Restaurant Industry Summary Report - January 2026

By Compass Restaurant Consulting & Research

This report provides regular updates on the key economic indicators. These data points are valuable for providing relevant insights into economic trends and operator, as well as consumer expectations.