Navigating Tariffs and Market Volatility for Franchise Restaurant Owners

Franchise Financing Experts | Specializing in Multi-Unit Restaurant Growth 

Economic Headwinds or Strategic Advantage? 

Tariffs and economic volatility often make headlines for the risk they pose, but for experienced restaurant operators and franchisees, these challenges can become tools for growth. At IRH Capital, we work closely with multi-unit owners and expanding brands, and we’ve seen how smart strategies during uncertain times often set the stage for long-term success. 

If you're in the restaurant space, here’s how you can turn disruption into leverage. 

1. Reevaluate Cost Structures and Sourcing

Restaurant franchises reliant on imported goods, especially equipment, packaging, or specialty ingredients, are more vulnerable to tariffs. Operators should work with their franchisors and suppliers to identify domestic alternatives and improve margin resilience. 

IRH Insight: When evaluating new concepts or remodel investments, ask where your key supplies are sourced and what contingencies exist for tariff fluctuations. 

2. Leverage Economic Instability in Lease and Vendor Negotiations

When uncertainty slows new development, those ready to move can often negotiate stronger deals. Landlords, vendors, and even franchise systems may offer incentives to keep deals moving. 

Consider asking for: 

• Tenant improvement allowances 

• Rent abatements or delayed starts 

• Vendor discounts on equipment packages 

• Franchise fee flexibility or phased payments 

IRH Insight: We frequently help operators structure financing that includes landlord incentives or blended capital solutions to stretch dollars further. 

3. Adapt to Shifting Consumer Behavior

Volatile markets shift, not eliminate, demand. Diners may cut back on high-end spending, but continue to seek convenience, value, and comfort. 

Restaurants focused on: 

• Quick service 

• Delivery and takeout 

• Budget-friendly meals 

• Family bundles and loyalty programs (often outperform during market contractions) 

IRH Insight: When looking to expand, prioritize brands with strong off-premises infrastructure, value messaging, and consistent repeat traffic. 

4. Use Slower Expansion Cycles to Your Advantage

When others pull back, ambitious franchisees can often secure more favorable terms including access to prime territories, multi-unit deals, or enhanced support. 

IRH Insight: We’re seeing top brands open doors for strong operators. If you’re ready to move forward, now may be the time to secure your next territory before market activity rebounds. 

5. Shift Your Local Marketing Message

In periods of volatility, flashy marketing loses ground to messaging built on trust, consistency, and local relevance. 

Position your restaurant brand to emphasize: 

• Reliable service 

• Transparent pricing 

• Community connection 

• Cost-saving promotions or loyalty value 

IRH Insight: Work with your franchise's marketing team to align promotions with economic sentiment in your market. 

Bottom Line 

Tariffs and volatility don’t have to stall your growth. Restaurant franchisees who act strategically, negotiate well, and align with consumer sentiment can come out ahead while others wait on the sidelines. 

IRH Capital is here to help you navigate that path, whether you're acquiring units, remodeling, or planning your next move. 

Let’s talk. Book a consultation to explore flexible financing options that turn disruption into opportunity.