Hey Hot Potatoes,

Welcome to the first edition of the Hot Potato Newsletter of 2026! Hope you had a good break - it was proper nice to have a few days off over Christmas to re-energise, spend time with family, have a few drinks and reflect on 2025. For all its challenges, it was a great year, but I think 2026 is shaping up to be even bigger and better. I've put some thoughts down about what the year ahead might look like and the trends that could shape the sector. So without further ado, let's get into it!

In today’s email: My predictions for 2026

Read Time: Approx 3-4 mins

My predictions for 2026.

Looking to the year ahead, I think we will see some existing trends and new trends continue to play out - here are my predictions for 2026.

Key Points:

Continued Convergence of wellness and hospitality:

I think this area will continue to see incredibly strong growth, with the wellness and hospitality spaces becoming increasingly intertwined. We saw loads of examples last year of wellness-focused concepts in London and the UK - ARC, Rebase, Elevate Wellness, Gus Wellness and many padel concepts. Saunas and smoothies really do go hand in hand! It wouldn't surprise me if this was taken up a notch, as there's so much opportunity to explore, including sleep-led concepts, which I think could be one to watch.

Further growth of food hall and market led concepts:

I believe we'll continue to see the growth of food hall and market-style concepts this year. 2025 was a great year for this space with Boxhall, Corner Corner, Market Place Leicester Square, and Tower Bridge Collective all coming onto the scene. Super exciting plans ahead for new venues, including the 17,500 sq ft Alfred Works in Digbeth, Birmingham. There's strong demand from new operators looking for smaller sites with strong footfall, making these ideal places to launch concepts and for experienced operators to grow.

International franchised brands will continue to grow and come to the UK:

Last year was big for franchised brands coming to the UK and existing ones seeing strong growth - Junk Burger, Chick-fil-A and Tiger Milk , to name a few. The UK has been an attractive market for international brands due to the sector's strength and infrastructure, making it an ideal testing ground. News of Raising Caines arrival this year is big news and as I write this, US sandwich giant Jersey Mikes has agreed a 400-site deal to launch in the UK from 2026. I expect more to come - watch this space…

Grab and Go / QSR to have a strong year:

When economic times become challenging, we often see the 'Lipstick Effect' in action, a term coined by Leonard Lauder of Estée Lauder after observing lipstick sales rise during economic downturns. If I were to predict which sectors might weather the coming turbulence, I'd be watching coffee, bakeries, sandwich shops, QSR brands and dessert concepts closely.

According to Barclays, almost half (47%) of consumers say they continue spending on small luxury purchases that bring them joy, even when making cutbacks elsewhere. Sweet treats and baked goods top the list as the most popular pick-me-ups. One to watch!

Organic and founder-led content will continue to be a differentiator:

If there's one marketing tool that will become increasingly important this year, it's organic, founder-led content. Customers love the people behind the brands and buy into their stories and dreams. George Artemi at Roll Boys is a great example. He amassed over 100k followers last year by showing the highs and lows of running a hospitality brand. As brands scale, people want to see the founders and build trust through that content.

Protein-Led Concepts + Menu Options :

In the last year, 'protein' has been thrown around like a buzzword, especially in supermarkets. Consumers are looking for ways to increase their protein intake and packaging and food concepts are pushing the message hard. I think we'll see this trend spill into hospitality, with new concepts emerging built around protein and existing menus adding healthier, protein-focused options. I've already seen a couple of high-protein ice cream brands launch and expect this trend to keep growing.

Community and Loyalty focus integral to growth:

It's harder than ever to keep customers coming back and ensure loyalty. More options than ever and tighter customer spending make retention increasingly challenging. To counter that, I believe driving a strong loyalty offering and community-inspired events and clubs will be integral for growth in 2026. Platforms like Leat and Embrago can get you up and running in no time. Ultimately, hospitality businesses should be a pillar of the community and a place where people feel they belong.

Casual Dining will find it challenging:

I feel like 2026 will be a tough year for casual dining. Brands that aren't offering either great value or great quality - those sort of sitting in the middle ground will find it challenging. Customers still want to treat themselves and go out but are being more selective about where they spend their money. While I don't think casual dining chains will collapse in its entirety, operators who've either become complacent or whose concepts haven't moved with the times will get found out.

So there you have it - my predictions for what's shaping up in hospitality this year. Whether it's protein-packed menus, founder-led content, or wellness concepts taking over, 2026 is going to be interesting to watch. As always, I'd love to hear your thoughts on what trends you're seeing or what you think I've missed.

As we embark on the new year, I’ll be gradually implementing some new changes to the newsletter that I think will take it up a notch! It goes without saying I really value your feedback, so if there is anything you would like to read or learn more about let me know.

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Bon appétit,

Max Shipman, Founder, Hot Potato

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