What the 2026 Restaurant M&A Landscape Means for Hospitality Operators

The forces reshaping restaurant M&A are relevant well beyond the restaurant sector. For hospitality and destination-driven business owners, the same dynamics apply: investors are more selective, expectations are higher, and the operators who come out ahead will be the ones who have done the foundational work. Here is what stood out to us.

Know Why Guests Choose You

Advisors from Jefferies and J.P. Morgan were direct: brand differentiation now requires knowing specifically what guests value about your business, not just broadly. That clarity is what maintains pricing power, protects traffic, and ultimately drives valuation. If the answer is fuzzy, that is the work to do first.

Experience Is the Strategy, Not Just a Differentiator

Consumer expectations have converged across categories. Guests are more selective, and what they are paying for needs to feel worth it. The panel noted that value is increasingly defined by the quality of service and consistency of experience, not price. Operators who invest in delivering genuine hospitality are building a durable advantage and a more compelling story for buyers.

The M&A Bar Is Higher

Growth projections alone no longer move capital. Buyers today want demonstrated performance, operational discipline, and a clear exit pathway. They expect to see consistency they can project forward, not just a story they have to take on faith. Exit strategy has also moved from an afterthought to one of the first questions in diligence.

Leadership Gets Evaluated Too

Panelists cited weak leadership as a consistent thread in recent hospitality bankruptcies. The inverse is equally true: businesses that command premium valuations tend to have leaders who can clearly articulate what makes the business work and translate that into action across employees, guests, and investors.

At Birch Creek Advisors, we work with hospitality and destination-driven business owners, thinking through growth, exit, and what comes next. If you want to talk through where your business stands heading into 2026, we are happy to have that conversation.