US EditionRestaurants Are Under Threat as Costs Skyrocket and Consumers Cut Back
TULSA COUNTY, OKLAHOMA, AUG 10 – Rising food and labor expenses are squeezing US restaurants as consumer spending slows, with food costs up about 21% since 2021, the Producer Price Index shows.
- Amid rising costs, local restaurants across the country are reeling as consumers cut back, with little room before profits erode.
- This year, supply chain hiccups cause delays and costs to rise, while diesel prices have increased about 22% since 2020, putting pressure on restaurants with 3 to 5% profit margins.
- In June, restaurants faced about 21% higher food costs compared to four years earlier, with food cost increases outpacing the 17.5% rise in wholesale prices, and staple items like coffee, eggs and cocoa spiked at various points this year.
- Consumers aren’t eating out as much, adding pressure to US restaurants and bars, which experienced one of their weakest 21% growth periods in the first half of 2025 and raised menu prices risking guest deterrence.
- Operators are testing dynamic pricing based on demand and costs, while restaurants are phasing in small increases and upselling paid add-ons to raise check averages.
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Total News Sources39
Leaning Left1Leaning Right1Center33Last UpdatedBias Distribution94% Center
Bias Distribution
- 94% of the sources are Center
94% Center
C 94%
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