Margins under pressureMargins under pressure

With the summer’s near-record drought putting pressure on commodity food prices, restaurant operators this fall face the decision of staying in the frying pan and watching margins erode or jumping into the fire with price increases.

Both solutions have their downsides, and for now operators appear to be taking a variety of approaches in addressing the menu-price dilemma. While Buffalo Wild Wings and Wendy’s have said they would contemplate selective price hikes to cover rising food costs, others, including Chipotle Mexican Grill, have said they would be judicious in considering any increases.

The domino effect of the drought on ingredient costs and still-fragile consumer confidence makes the perennially sensitive issue of pricing even more...