Eighty-seven percent of restaurant operators are at least somewhat optimistic about the next 12 months, even as 66% report significant increases in food and beverage costs, according to a survey by equipment financier SilverChef USA and research firm Leger.

The survey, conducted online June 22–July 6 among foodservice and hospitality operators — 24% of them fast-casual operators — also found that 64% of U.S. respondents said profit margins improved over the past year, though 45% described the improvement as slight. Meanwhile, 35% cited increases in both labor and utilities, and 68% said they raised menu prices during the past 12 months.

"The optimism caught my attention," Jon Jacobs, SilverChef's president of U.S. operations, told FastCasual. "The confidence is supported, in part, by recent performance, with 64% reporting that their profit margins improved over the past year."

Why can't operators act on their optimism?

The survey's more complicated finding sits in the gap between what operators want to spend and what they can. Four out of five U.S. respondents want to upgrade or replace equipment, and more than half are actively planning or budgeting for it. But 27% said they would like to upgrade but cannot afford it, and 42% said planned equipment upgrades were canceled due to cost.

Jacobs called that disconnect one of the study's most notable findings.

"Cash flow is the practical constraint we see most often," he said. "Equipment purchases have to compete with food, payroll, utilities, rent and other operating expenses."

The financing angle matters commercially: 86% of participants said changing or improving equipment without a high upfront cost would let their kitchens operate more smoothly. Jacobs said operators generally want to minimize large upfront payments in favor of predictable weekly or monthly costs, and that rentals or lease-to-own arrangements can keep cash available for operations — the model SilverChef itself sells.

Which equipment hurts most when it fails?

Cooking equipment ranks as the biggest operational bottleneck, cited by 20% of participants. Point-of-sale and tech hardware followed at 15%, with refrigeration at 13%.

The median U.S. operator spends $22,500 a year on equipment maintenance and repair, the survey found. Jacobs argued aging equipment carries hidden operating costs through repeated service calls, higher energy use and downtime.

"If a fryer or refrigerator fails during a busy shift, an operator could be forced to cut menu items, slow service or deal with food spoilage," he said. "A repair may solve today's problem, but repeated service calls, higher energy use and unplanned downtime can keep adding costs."

Adaptability also drives replacement decisions. "The menu may change, volume could grow, or a unit might turn out to be the wrong fit for the space," Jacobs said.

Where do startup budgets go wrong?

Nearly nine in 10 U.S. operators — 89% — were surprised by at least one startup cost. The culprits:

• Licensing and permits: 36%
• Commercial kitchen equipment more expensive than anticipated: 35%
• Food and beverage inventory costing more than expected: 31%

The result: 46% of respondents exceeded their original startup estimate, while 49% came in on or under budget. Jacobs said some new operators focus so heavily on launching that they lack cash in the months after opening, and that a common mistake is building the equipment budget around purchase price alone.

"The equipment has to fit the site, be installed and work with the available power, gas, plumbing and ventilation," he said — expenses that often land at the same time as permits and opening inventory.

What pressures differ by market?

Food and beverage costs remain the top perceived threat across all U.S. markets studied, but secondary concerns diverge. Tariffs and supply-chain disruptions ranked higher in New York and Chicago, while declining consumer spending weighed more heavily in California, Texas and Atlanta.

"Those differences matter when an operator decides whether to repair, replace or finance equipment because local cost pressures affect how much cash the business can commit," Jacobs said.

The data points to a sector recalibrating under cost pressure: owner-operators rethinking pricing strategies, triaging which equipment upgrades can wait, and working to preserve cash on hand.