In this Weekly Wrap, we’re looking at the hemp-THC ban’s effects on bars and restaurants, why beverages will be bigger in 2026, shoppers looking for a bargain this holiday season, and more.
THC Ban
The Headline: “Federal hemp-THC ban signed into law as part of spending bill’”
The Source: Restaurant Business Online
What You Need to Know:
President Donald Trump late Wednesday signed a spending bill that had previously received approval from both chambers of Congress, ending the 43-day government shutdown, and, in the process giving a federal stamp of approval to a ban on hemp-THC products that have recently emerged as a major growth channel in convenience stores, grocery stores and restaurants.
The provision banning hemp-derived THC drinks, gummies and other items was slipped into the federal funding bill just before the Senate voted on it Sunday.
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The ban closes what some viewed as a “loophole” in the 2018 farm bill that allowed for the nationwide sale of products containing 0.3% hemp-THC by weight.
In the years since, the segment has grown into an estimated $28.3 billion industry, with hundreds of suppliers producing seltzers, sodas, shots, spirit analogues, gummies and more containing low doses of THC. Not to be confused with items sold in dispensaries in states where marijuana legal, these products can be sold in c-stores, grocery stores, restaurants, bars and via direct-to-consumer channels in dozens of states that allow them. Most contain anywhere from 2 milligrams to 10 milligrams of intoxicating THC per serving.
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As alcohol use has declined, more consumers have made the shift to THC. Last year, daily and near-daily marijuana users surpassed regular alcohol drinkers, according to a Carnegie Mellon University analysis of more than 40 years of national survey data.
Our Take:
I can’t say I’m surprised. The push into THC has been going on for a while and plenty of businesses have poured serious money into the cannabinoid-infused drink space. Up until now that category has existed with almost no regulation, especially compared to the tightly controlled recreational and medicinal marijuana markets.
What does surprise me is how long it took for this kind of oversight to land. Over the past few years, daily weed use has actually outpaced daily alcohol consumption. Understandably that has made some operators nervous as they watch their alcohol sales dip. A few I have talked to think this new law will help the industry. I am not so sure.
Do I think regulation here makes sense? Yes. This category should be held to the same standards as alcohol and marijuana. But will this have any major effect on restaurants and bars? Absolutely not. The people who love weed will keep smoking it, eating it, or drinking it. For the bars that leaned into THC-infused NA seltzers during Dry January, it might be time to step that back.
Drinks Outlook 2026
The Headline: “Why beverages will be even bigger in 2026”
The Source: Nation’s Restaurant News
What You Need to Know:
The beverage category has been on a steep uptick for the past several years, fueled by the success of Dutch Bros’ public market performance, votes of confidence from the likes of Blackstone and Flynn Group for 7 Brew, Swig’s meteoric growth, and so forth.
To protect themselves from these growing market share threats, there has also been a clear shift in focus toward beverages from legacy chains, including McDonald’s, Taco Bell, and Wendy’s. Even casual-dining concepts are picking up the innovation pace on the beverage side of the menu, knowing that exciting new offerings are massive opportunity to attract consumers, especially younger ones.
That said, we can expect the narrative around beverages to be even bigger in 2026. Consider McDonald’s, for example, which is doing a bunch of work around its beverage platform that was initially informed by its now defunct-CosMc’s concept.
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Wendy’s and Taco Bell also plan to expand their beverage footprints in 2026. During his company’s recent earnings call, Wendy’s interim CEO Ken Cook said the cold brew, cold foam, and sparkling energy drink launches in Q3 have performed in line with expectations despite no media support.
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In western markets like California and Nevada, these QSR giants will have to contend with increased competition from 500-unit El Pollo Loco. CEO Liz Williams said the chain is looking to capture additional sales occasions with a “comprehensive beverages platform in 2026.” =
“We believe beverages represent a significant opportunity for El Pollo Loco as an add-on to increase check average and also to fulfill multiple daypart needs for our customers and drive relevance,” she said. “I'm excited about our beverages. They’re a great check protector.”
Our Take:
We keep seeing articles about the beverage space, and that is not going to slow down anytime soon. Fine dining, casual dining, fast casual, and QSR — everyone is going to push beverages. It is the one high point in the industry right now with the most upside.
Alcoholic and non-alcoholic drinks are both seeing more investment, more innovation, and more sales. Independent operators need to pay attention, especially in casual dining, fast casual, and QSR. Beverages have been a neglected part of those businesses for years, and now that the big chains are pouring money and marketing into them, independents need to keep up or risk getting left behind.
What Restaurants Do with Items Guests Leave
The Headline: “What Restaurants Really Do With the Stuff You Leave Behind”
The Source: Food & WIne
What You Need to Know:
If a customer leaves a credit card, that immediately gets turned over to the manager. It will sit in the desk waiting until someone inquires about it and after 30 days, someone might find the fortitude to cut it up and throw it away. I had a customer leave a credit card once. I knew they lived in the neighborhood, so trying to be helpful, I called the credit card company and asked if they could call the customer and ask them to come back to the restaurant. “Thank you for alerting us to this situation. We will cancel the card for their protection,” they said.
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Phones that are left behind don't remain lost for very long. Most of us are so accustomed to having them connected to our palms that we realize we’re phoneless two minutes after we step out of the restaurant. People always come back for their cell phones.
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If you ever leave something in a restaurant, give the restaurant a call. Chances are your scarf is in a box where it is likely to remain in perpetuity because no one who works in a restaurant has any interest in ever taking all of that stuff to a donation center. Your scarf is there along with five pairs of reading glasses, a few credit cards, and a lonely stuffed animal that some kid once desperately loved.
Our Take:
This article pisses me off. Yes, these things happen, credit cards get left all the time and most places give them to the manager and that manager will wait for someone to call then cut them up.
It gets even stickier in some hotels (not all). I once worked in a hotel where if something was left behind it was turned in, the guest was called and emailed, follow ups happened every few days, if there was no response within a month the person who found the item was allowed to take it home. Someone once found a Cartier watch and no one claimed it. Now this was years ago, but I’m going to assume that some places still do this.
Let’s not focus on what I don’t like about this article, because the article itself is not untruthful, let’s focus on what you as an operator can do to be more thoughtful when these things happen.
It’s real simple: take the extra step. If someone leaves something, try and figure out who left it or at the very least what table they were at. If they had a reservation, there is almost always an email and phone number. Call them and let them know. How amazing would it be to get a phone call from the restaurant to let you know that you left your scarf there (and probably didn’t realize)? If someone left a credit card with no reservation… guess what, there’s generally a name on the card. One time someone left a card and all I had was their name, I did a quick Instagram search and found them, DM’d them from the restaurant account. They ended up coming back a week later with a partial buyout.
One other thing: don’t just throw anything left behind in a random box, put some sort of label on it, like “January 27, table 27, walk-in.” This way you know when and where it was found.
Little gestures go a long way. Yes, I realize this takes up a little bit of precious time, but it is something that sets you apart and lets the guests know you are thinking about them after they leave your four walls.
Bargain Chains Luring Luxury Buyers
The Headline: “Fewer burritos, more bargains: Consumers flash holiday warning signs”
The Source: CNBC
What You Need to Know:
High-income consumers are trading down, Gen Z is spending less, and low-income shoppers are still struggling, according to many consumer companies that shared their latest quarterly results in recent weeks.
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According to credit card data from equity research firm and bank Truist, sales have softened in recent weeks across many of the retailers that it watches. Sales trends slowed at Walmart, Home Depot and Lowe’s in October after they saw solid sales in August and September, according to Truist.
Wall Street has noticed slower spending, too. Michael Baker, a retail analyst for D.A. Davidson, said he now expects weaker holiday spending than he did before as consumers face a challenging mix of higher tariffs, slower job growth and pressure on lower-income households.
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Dine Brands, which owns Applebee’s and IHOP, is seeing a similar trend. With a 2 for $25 promotion at Applebee’s and a $6 value menu at IHOP, the casual-dining chains are pulling customers away from higher-priced options.
“We’re seeing a greater increase of higher-income guests joining us this year,” Dine CEO John Peyton told CNBC, adding that the jump in traffic from that cohort is offsetting the decline in visits from low-income diners.
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Gen Z and millennials are not spending the way they used to as they contend with a slowing job market, rising unemployment and the resumption of student loan collection, which the federal government restarted in May.
The generational trend is particularly bad news for fast-casual restaurants, which skew toward younger diners. Fast-casual favorites such as Chipotle Mexican Grill, Cava and Sweetgreen reported that consumers ages 25 to 35 aren’t visiting as frequently anymore. All three chains cut their full-year forecast following disappointing third-quarter results.
At Chipotle, the 25- to 35-year-old cohort typically accounts for about a quarter of sales. However, those diners haven’t been visiting the burrito chain’s restaurants as frequently, instead opting to cook at home, according to CEO Scott Boatwright.
Our Take:
Most of this information is nothing new. Gen Z is spending less and eating at home more, and lower income shoppers are cutting back overall spending. Yeah, we know.
The interesting part is that higher income earners are trading down brands. That is a big signal for both retail and restaurants. It shows that value is at the forefront of everyone’s mind.
Gen Z is looking for value but also story, vibe, and experience. Operators should be finding ways to draw this group in while also upping the quality to value ratio for higher earners who still want something nice, just at a better price.