Food Liability Insurance Program (Flip) Releases 2026 Food & Beverage Industry Economic Trends Report

 Most Operators Remain Confident Despite Rising Food Costs and Increased Claims Severity

PLEASANT GROVE, UTAH - February 12, 2026 (NEWMEDIAWIRE) - Food Liability Insurance Program (FLIP), a national insurance program designed for small to mid-sized operators in the food and beverage industry, today released its third annual 2026 Food & Beverage Industry Trends Report, combining insights from mobile food service operators as well as U.S. consumer perspectives on dining habits from last year and 2026, along with proprietary insurance claims data from 2025.

Despite ongoing cost pressures in terms of food and labor, most operators remain optimistic heading into 2026. The report found that 81.7% of operators feel confident about their 2026 business outlook. More than 60% of businesses indicated they were able to grow in 2025 and 42.3% expect their average ticket size to increase in 2026. 

"Food and beverage operators are entering 2026 with confidence, but that optimism comes alongside real financial pressure," said Daryle Stafford, CEO of Veracity Insurance, parent company to FLIP. "Rising food costs and tighter margins are forcing business owners to be more disciplined in how they plan for growth and protect their operations."

Cost pressure remains widespread across the industry. According to the report, 63.3% of operators cited food costs as their largest expense increase, and 72.1% expect food costs to rise in 2026. In 2025, 54.6% said rising food and ingredient costs negatively impacted profitability.

Consumer demand remains resilient, even as price sensitivity grows. Just 16% of consumers plan to dine out less in 2026, while spending per meal continues to rise, with more than 97% of consumers willing to spend $10+ per meal, up from 94% last year.

FLIP's insurance data shows a notable increase in claims activity and severity. Claims increased 32.7% year over year in 2025, with a small number of high-cost incidents, particularly fires and major accident-related losses, driving a disproportionate share of total incurred dollars. The most common claim types were: 

• Accidents causing damage at 23.1%

• Auto or trailer incidents at 16.4%

• Weather-related claims at 14.2%

• Fire-related claims at 9.7% 

The average payout of all claims was $14,158, with 72% of claims occurring during the summer months. Caterers, food trucks and trailers, and farmers market vendors experienced the highest claim activity.

"As claims become less frequent but more expensive, operators face a different risk profile than in prior years," added Stafford. "High-severity events can quickly turn into major financial losses, underscoring the need for proactive risk management and adequate insurance coverage."

The full 2026 Food & Beverage Industry Trends Report includes detailed findings by business type, consumer dining behavior, insurance claims activity, and economic outlooks across the food and beverage industry and is available online.

View full report here: FLIP's 2026 Food & Beverage Industry Trends Report

About Veracity Insurance (Parent Company of FLIP)

Veracity Insurance is a specialty insurance provider serving small and mid-sized businesses through exclusive, industry-tailored programs. With in-house underwriting expertise and partnerships with A-rated carriers, Veracity delivers efficient, reliable coverage designed to meet the unique risks of niche industries. The company specializes in General Liability, Product Liability, Program Management, and Surplus Lines solutions, helping businesses across the U.S. secure the protection they need to operate and grow with confidence.

About Food Liability Insurance Program (FLIP)

Food Liability Insurance Program (FLIP) provides tailored insurance coverage and resources designed specifically for mobile, home-based, and traditional brick-and-mortar food businesses.

Media ContactKyle PorterVirgo PR
[email protected]

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