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Food Costs Surge: Operators Raise Prices Amidst Challenges
19 Jul
Summary
- 86.6% of operators report rising food costs, with many seeing increases over 15%.
- 77% of owners faced labor cost increases, with 61% expecting further rises.
- Operators combat rising expenses by increasing menu prices and checking inventory.
The restaurant industry is navigating a challenging period characterized by rising food and labor costs. In the first half of 2026, Restaurant365 surveyed over 400 operators, finding that 86.6% reported an increase in food expenses. Over half of these operators expect these costs to continue escalating throughout the year.
Labor costs have also surged, with 77% of owners noting increases. The situation is compounded by a reported 39% turnover rate, the highest in three years. To mitigate these financial pressures, a majority of operators have resorted to raising menu prices, a strategy that has become more prevalent than in previous surveys.
Beyond price adjustments, operators are implementing other measures. Many are enhancing inventory checks to minimize waste, and some are exploring changes to their supplier relationships. Technology spending is also being directed towards staff enhancements, indicating a focus on operational efficiency and employee support.
