Toast annually surveys hundreds of operators working in retail, and this year’s results show the industry is cautious and resilient — operators remain positive but are tightening control amid an uncertain landscape. The last year has seen persistent hikes in inflation and macroeconomic volatility, but America's convenience stores, bottle shops, and grocery stores (CBGs) remained largely confident.
Our data shows that operators still expect to grow, but they’re looking to shore up their foundation by protecting margins, simplifying operations, and employing more efficient tech1. This was a blind survey of operators and decision-makers with fewer than 16 locations in the United States and included both Toast and non-Toast customers. Respondents were not informed that Toast was conducting the study.
Key takeaways from the 2026 Voice of the Retail Industry Survey:
Among the 340 operators surveyed:
Operators are feeling positive: 94% rated their business health good or excellent
Expansion is on the table: 66% say they're likely to open a new location in the next year
31% say they’re looking to simplify their operations in their top three business goals, up 12 points year-over-year2
Inflation remains a concern, but inventory management (up 6 points year-over-year) is the biggest pain point
It’s an AI world: Nine in ten operators are experimenting with AI
How healthy is the retail industry in 2026?
Among 340 operators surveyed:
94% of operators rate their business health "good" or "excellent" (equal to 2025)
83% are optimistic about keeping their doors open over the next year (versus 78% in 2025)
Nearly 3 in 4 reported increases in both revenue and profit over the past year
88% of retailers believe AI will help them be more efficient at work
Retail operators, in general, are still feeling positive. Sentiment held steady from 2025 — 94% of operators rated their business health "good" or "excellent" — but there's been a subtle shift beneath the optimism.Operators seem to be feeling more cautious, with more describing their business health as "good" rather than "excellent." Toast’s separate Voice of the Restaurant Industry survey found, meanwhile, that 91% of restaurant operators rated their business as “good” or “excellent.”
How likely are retail operators to expand to a new location?
Among 340 operators surveyed:
66% of retail operators polled say they're likely to open a new location, up 3 points year-over-year
62% of convenience store operators say they’re likely to open a new location, up 4 points year-over-year
70% of bottle shop operators say they're likely to open a new location, up 5 points year-over-year
69% of grocery operators say they’re likely to open a new location, up 4 points year-over-year
What are retail operators focused on this year?
Among 340 operators surveyed:
Improve profitability: the #1 goal for operators, with 32% of operators ranking it as their top 3 goals, down 5 points year-over-year.
Simplify operations: 31%, up 12 points year-over-year
Improve employee productivity: 27%, up 1 point year-over-year
Start using new tech: 25%, up 2 points year-over-year
Increase same-store revenue: 24%, down 3 points year-over-year
Increase customer demand: 24%, down 1 point year-over-year
Increase customer checkout throughput: 21%, up 5 points year-over-year
Improve employee retention: 20%, down 2 points year-over-year
"Simplify operations" is the clearest year-over-year shift, rising across every segment (+17 pts bottle shops, +11 convenience, +8 grocery)
Expansion remains a goal for retailers, but the 2026 data shows they're also focused on making their operations more efficient. In other words, they want to make things run smoothly before adding more to their plate. “Simplify operations” as a goal jumped significantly among all operators, up 12 percentage points overall. Profitability (32%), “improve employee productivity” (27%), and “start using new tech” (25%) were the other top goals of retailers. The message is clear: Retailers are looking to run more efficiently.
What's making it hardest to run a retail business right now?
Among 340 operators surveyed:
Inventory management: the hardest aspect of running a retail business, with 21% of operators ranking it in their top 3, up 6 points year-over-year.
Managing third-party delivery: 16%, up 5 points year-over-year
Inflation: 16%, up 1 point year-over-year
Employee scheduling: 15%, up 3 points year-over-year
Marketing: 15%, down 4 points year-over-year
Increase line speed: 15% — most important for grocery stores (17%, up 7 points year-over-year) and bottle shops (23%, up 3 points year-over-year) compared to convenience stores (8%, down 6 points year-over-year)
Sourcing and hiring employees: 14%, no change year-over-year
About 6 in 10 find it hard to stand out from competitors — toughest for bottle shops (69%), then convenience (59%) and grocery (52%)
Every American who shops for groceries knows inflation is a significant issue. Those cost pressures have made their way to retailers. Retail operators listed inflation among their top concerns, along with inventory management and deliveries. Roughly the same percentage of operators chose inflation as a top-three pain point in 2026 as 2025— indicating the industry has been dealing with that particular pressure for some time.
What are retail operators doing to generate demand?
Among 340 operators surveyed:
Social media marketing (35%) is the top tool being used for demand generation
Online advertising: 34%
Improving speed of service: 34%
Loyalty or rewards programs: 31%
Advertising: 30%
Amid a tightening economic landscape, retailers, naturally, are looking to stand out. Notably, operators noted they were looking to meet their customers where they are: on their phones. CBGs described looking to improve their online advertising and social media presence to draw in customers. Fast service, as ever, is a top focus, too.
How do operators feel about the market?
Among 340 operators surveyed:
All retailers (Total CBG): extremely comfortable 35%, comfortable 48%, neutral 11%, concerned 6%, extremely concerned 0% with current market conditions.
Larger operators ($1M+ GMV): extremely comfortable 28%, comfortable 57%, neutral 9%, concerned 6%, extremely concerned 0% with current market conditions.
Smaller operators (<$1M GMV): extremely comfortable 43%, comfortable 40%, neutral 12%, concerned 5%, extremely concerned 0% with current market conditions.
It’s clear operators are worrying about costs, though perhaps not to the levels some might expect. In fact, when asked about market conditions, respondents who said “comfortable” or “extremely comfortable” rose six percentage points. Smaller retailers — those doing less than $1 million in Gross Merchandise Volume or GMV — were more likely to be “extremely comfortable,” while larger retailers had a greater total percentage feeling comfortable.
Diving in a little deeper, 93% of single location operations, perhaps more likely to have a lower GMV figure, report they are extremely comfortable or comfortable compared to 81% of operations that have more than one location, signaling that simpler operations are feeling better about the current climate compared to busier and more complex stores, where there is more opportunity for things to go wrong.
How are operators responding to rising costs?
Among 340 operators surveyed:
Operators said they will adjust the number of suppliers if the cost of goods rises over the next 12 months, with 33% saying they would make that change
Increase prices on products: 32%
Conduct product-level profitability analysis: 30%
Negotiate with suppliers: 29%
Start tracking key products more closely: 29%
Tightly manage inventory (or carry leaner inventory): 28%
Reduce hours of operation: 27%
Add additional service fees or charges: 24%
But since costs are rising, operators are looking to take control of their finances, primarily via managing their suppliers and, if need be, raising prices. Overall, operators seem willing to use varied strategies to combat rising costs.
Are retailers still investing in technology?
Among 340 operators surveyed:
75% of retail operators plan to increase technology spending in the next 12 months (up significantly from 64% last year)
Barcode scanners: 56% use the tech, down 3 points year-over-year
Accounting software: 55% used it, down 5 points year-over-year
Electronic shelf labels: 46%, up 11 points year-over-year
Order ready boards: 46%, up 9 points year-over-year
EBT/SNAP payments: 41%, up 6 points year-over-year
Automated invoices: 48%, up 6 points year-over-year
Self checkout: 36%, down 7 points year-over-year
Fastest-growing tools: electronic shelf labels (+11 pts) and order-ready boards (+9 pts)
With an increased focus on efficiency, CBG retailers are looking to tech to help streamline their operations. Electronic shelf labels and order-ready boards both saw significant growth in usage, which could indicate operators are looking to make price changes easier and simplify ordering. These changes track with the overall sentiment of retailers looking to tighten control over their businesses.
Still, the familiar workhorses remain the most-used tech, namely: barcode scanners (56%), and accounting software (55%). While new tech is great, it shows that it’s difficult for retailers to get by without reliable everyday tools.
How are retailers using AI?
Among 340 operators surveyed:
Actively experimenting with AI through vendors, but not on our own: 42%
Experimenting both on our own and through vendors: 28%
20% of retail operators polled are actively experimenting with AI on their own, but not through vendors.
Considering AI but haven't started: 9%
Every other conversation in 2026 seems to revolve around AI, and retailers have jumped into that dialogue. Operators indicated they were looking for ways AI could help make their businesses more efficient, but expressed a need for human oversight. Most operators (around 65% or more, typically) expressed wanting some level of human involvement in AI-generated work. Nine in ten retailers, meanwhile, said they were experimenting with AI in some form.
How do retail operators feel about AI?
Among 340 operators surveyed:
Will use AI more in the future: 90%, up 6 points year-over-year.
89% of retail operators polled feel comfortable using AI, down 1 point year-over-year.
Believe AI will help them be more efficient at work: 88%, up five points year-over-year.
Trust AI with their business needs: 88%, up 3 points year-over-year.
Say AI tools offer great value for the money: 92%, up 7 points year-over-year.
Most operators expressed a generally positive opinion of AI tools. Retailers with under $1 million in GMV, for instance, indicated they planned to expand their usage of AI tools in the future.
When asked where they expected AI to help, operators responded with decision making (42%), staff productivity (40%), marketing performance (39%), guest experience (37%), and sales & revenue (37%) as top priorities. And for nearly all issues, operators largely expressed a desire to have humans oversee AI-generated work.
What's the bottom line for retail in 2026?
In short: Retail operators are resilient, still believe in their businesses, and still plan to grow. Overall, the survey data showed they’re looking to grow more efficiently — with new tech, AI adoption, and a careful eye on costs — amid a difficult macroeconomic climate.
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