Operators look for other levers to address higher costs as consumers start to trade down when dining out
.svg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale "Nation's Restaurant News")
With inflation hitting a 40-year high in March, restaurant operators have been relying largely on menu price increases to offset their higher food and supply costs. And for the past year or so, that seemed to be okay with consumers, who were just happy to be able to go out to eat again after pandemic shutdowns.
In earnings calls early in the year, many chains — from Chipotle Mexican Grill to First Watch — expressed confidence that they had room to increase menu prices further this year to mitigate sharply rising costs. But with consumer prices climbing 8.5% for the year ending in March, gas prices hitting record highs across the country, an ongoing war in Ukraine, and fears of recession looming, industry observers say consumers are starti...
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