Gas prices exceeding $4 per gallon and ongoing tensions with Iran may lead to a surge in staycations this summer, impacting consumer spending patterns. As families opt for local vacations, the food and beverage sector could see shifts in dining habits, with a recent report indicating that 31% of diners are visiting restaurant chains less frequently due to rising costs. This trend could influence M&A activity, which is already seeing fewer but larger transactions focused on disruptive brands.
In 2026, dealmakers are expected to capitalize on this environment, particularly as sustainable packaging solutions gain traction amid increasing scrutiny over microplastics. Companies like Jersey Mike’s are preparing for significant IPOs, testing investor appetite for fast-casual growth amidst a more selective market.
For market professionals, the key takeaway is to monitor how consumer behavior shifts in response to economic pressures, as this will likely shape investment strategies and sector performance in the food and beverage landscape.
Source: foodinstitute.com