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Why restaurant prices are so high, and what's next

Restaurant prices up higher than the inflation rate
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Shoppers are seeing lower, or at least steady, prices at the grocery store.

But diners at restaurants are still experiencing a higher rate of inflation.

From fast food to your favorite sit-down restaurant, dining out is much more expensive, especially with a large family.

So we wanted to know what's driving prices up — and if there's any way for you to save.

Owners struggle to keep menu prices down

Chris Breeden owns a century-old restaurant, Arnold's Bar and Grill.

He said soaring food prices are making dining out more challenging.

"It is definitely more expensive to eat out which is pretty regrettable," he said.

While the Consumer Price Index shows grocery prices leveling out in 2024, Breeden said that's not what he's seeing when it comes to his supplies, especially with meats.

But he is looking for ways to keep costs down for diners.

"You can't just pass on a doubling of the price of French fries to the consumer," he said, "because no one is going to be paying $7 or $8 for a side of French fries."

That means smaller, or fewer side items in most restaurants these days. Some have made salads, formerly included with the main dish, an extra side item.

Kristen Bailey owns a food truck, Sweets and Meats Barbecue.

While she doesn't have the overhead of a full-service restaurant, she has had to cut back on expensive items to keep her prices affordable.

"With proteins being so high, with an item like brisket, I am losing 40 percent of what I am paying for it," she said.

Hospitality management professor David Corsun said higher utility bills, as well as higher labor costs, also drive menu prices up.

And he said softening consumer demand is forcing some owners to rethink hours of operation.

"What we've seen is a concentration of dining out," he said. "That's basically Thursday through Saturday," especially with many workers staying home remotely on Mondays and Fridays, reducing the lunch crowd on those days.

What can diners do?

Corsun said one way to cut costs is to skip delivery services, which charge a fee to both you and the business.

Instead, he said, "If you really want to support a local restaurant, order it and then pick it up."

To manage food costs, in the meantime, he suggested you:

  • Ask a restaurant about rewards or loyalty points for future discounts.
  • Skip the side of fries or an appetizer.
  • And pass on pricey cocktails that can add up quickly.

Arnold's Owner Chris Breeden just hopes diners understand that restaurants are not price gouging.
"There's a perfect storm brewing for us," he said. "Labor costs are up and the cost of food is up."

So support your local restaurants as best you can, and don't waste your money.

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