The Food Liability Insurance Program (FLIP) has released its third annual 2026 Food & Beverage Industry Trends Report, combining operator insights, consumer dining data, and proprietary insurance claims information from 2025. The report indicates that 81.7% of food and beverage operators feel confident about their 2026 business outlook, with more than 60% having grown in 2025 and 42.3% expecting average ticket sizes to increase this year.
Daryle Stafford, CEO of Veracity Insurance, FLIP's parent company, noted that optimism exists alongside significant financial pressure. Rising food costs and tighter margins are forcing business owners to adopt more disciplined approaches to growth planning and operational protection. According to the report, 63.3% of operators cited food costs as their largest expense increase, with 72.1% expecting further rises in 2026. In 2025, 54.6% reported that rising food and ingredient costs negatively impacted profitability.
Consumer demand appears resilient despite growing price sensitivity. Only 16% of consumers plan to dine out less in 2026, while spending per meal continues to climb. More than 97% of consumers are willing to spend $10 or more per meal, up from 94% the previous year. This suggests continued market opportunity for operators who can manage cost pressures effectively.
FLIP's insurance data reveals a notable 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 claim payout 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 includes detailed findings by business type, consumer dining behavior, insurance claims activity, and economic outlooks across the industry. The complete 2026 Food & Beverage Industry Trends Report is available for review online.
This data has significant implications for industry stakeholders. Operators must balance growth ambitions with careful financial management as input costs rise. The shift toward higher-severity claims suggests that traditional risk assessment models may need updating, with greater emphasis on catastrophic event preparedness. Insurance providers may need to adjust underwriting approaches to account for the changing claims landscape. For consumers, the report indicates that dining prices may continue to increase as operators pass along some cost pressures, though demand appears strong enough to sustain the industry's growth trajectory.
