As the national conversation around tariffs continues to evolve, entrepreneurs across industries are grappling with a difficult but essential question: In the face of economic uncertainty, should growth initiatives—such as expansion, infrastructure investment, or franchise development—be paused or pursued with greater precision? Building upon my recent article, Adapting to Shifting Economic Realities: Tariffs or Not, Business Must Go On, it’s important to explore this question through a broader and more nuanced lens, especially for those in the restaurant and franchising sectors where economic pressures manifest quickly and pervasively.

The recent implementation of sweeping tariffs by President Trump, including a baseline 10% duty on imports from all countries and higher rates for specific trading partners, marks a bold shift in trade policy. Designed to address persistent trade imbalances and incentivize domestic manufacturing, these tariffs nonetheless carry significant downstream consequences for entrepreneurs. For those leading franchise organizations, managing multi-unit operations, or launching new ventures—particularly in capital- and supply-intensive industries like foodservice, the implications are anything but abstract.

In the restaurant industry, where margins are historically thin and operational costs tightly managed, even modest increases in the cost of imported goods, be it kitchen equipment, packaging materials, or key ingredients can tip the scales. Franchisees, often operating under fixed agreements with limited flexibility in pricing or sourcing, may find these added expenses especially burdensome. From a franchisor’s perspective, these shifts can complicate development plans, delay openings, or necessitate revisions to franchise support systems, training, and vendor networks.

Yet, adversity has always been the breeding ground for innovation, and the current moment is no different. Entrepreneurs and franchise leaders are being called to reevaluate the foundation of their business models and explore strategies not only for survival but for sustainable growth in a shifting economic landscape.

The first and perhaps most urgent step is to rethink supply chain resilience. Franchise systems, which often centralize sourcing to maintain brand consistency and ensure economies of scale, must now assess whether alternative or domestic suppliers can offer stability in both cost and delivery. For restaurants, this could involve identifying new sources for ingredients or exploring co-packing partnerships closer to home. In some cases, this reevaluation may even lead to increased transparency and trust within the system, as franchisees see their franchisor actively adapting to protect their investment.

Operational efficiency, long emphasized in franchising as a competitive advantage, becomes a strategic lever. Leaner models, smarter labor deployment, energy-efficient equipment, and digital integration (including AI-driven analytics) can drive down operational costs and counterbalance rising expenses elsewhere. These efficiencies not only preserve profitability but may also unlock the capital necessary to support new development or upgrade existing locations.

Equally vital is the assessment of menu mix and service models. In an environment where imported goods are more costly, emphasis should be placed on locally sourced items or those with stable pricing. This can lead to innovation in the kitchen and a refreshed focus on regional identity, which customers often embrace. In the franchising context, such changes must be executed with careful consideration for consistency, branding, and training, but they may also differentiate the brand in a crowded marketplace.

On a strategic level, franchisors and multi-unit operators must remain fluid in their development planning. This includes rethinking market entry strategies, financing structures, and location footprints. For instance, smaller footprint models with a focus on delivery and takeout, a trend accelerated during the pandemic, can offer lower upfront investment and greater operational flexibility in uncertain times.

Additionally, professional guidance cannot be underestimated. Trade experts, franchise consultants, financial advisors, and supply chain analysts bring critical external perspectives that can help businesses navigate complex regulatory frameworks and uncover untapped opportunities.

While the imposition of tariffs presents immediate challenges, it also catalyzes a deeper examination of what makes a business and a brand resilient. Entrepreneurs and franchisors who rise to the occasion with clear-eyed planning and adaptive strategies can emerge not merely intact, but positioned for long-term advantage.

In conclusion, the path forward is not to delay progress but to pursue it with elevated diligence. Tariffs may complicate the journey, but they also invite entrepreneurs to fortify their operations, rethink old assumptions, and create stronger foundations for future growth. Whether in the restaurant industry, franchising, or any other sector, those who remain agile, informed, and relentlessly solution-oriented will continue to find opportunity, often in the very challenges others see as roadblocks.

Make today a great day. Make it happen. Make it count!

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Through coaching, advisory, digital media, marketing solutions, franchise development, and business optimization strategies, we deliver tailored support designed to not just launch businesses but to scale them sustainably. We help uncover blind spots, optimize strengths, and build the operational and strategic foundation necessary for long-term success.

If you are building something bold—or struggling to hold together what you’ve built—we invite you to connect. Let’s ensure your business becomes the exception to the grim statistics, not the example of them.

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About the Author

With over 40 years of experience as a senior executive, consultant, coach, and entrepreneur, Paul Segreto is a recognized leader in small business, franchise, and restaurant management and development. His mission is to drive success through a culture-to-growth philosophy while connecting the right people, brands, and opportunities.

Since 2001, Paul has advised startups and emerging brands in defining their competitive edge and scaling effectively. He also provides coaching to individuals, families, and partners pursuing entrepreneurial goals.

Recognized as a Top 100 Global Franchise and Small Business Influencer, Paul shares daily insights at Acceler8Success Cafe and regularly contributes to a variety of industry blogs and publications.

Reach out directly to Paul at paul@acceler8success.com—your path to success may be one conversation away.