Have RESTAURANTS unfairly RAISED PRICES?

Question

In the last 5 years, menu prices at restaurants in the United States have soared, well above the total inflation rate, as shown in the chart below.

Waffle House, a 24/7/365 restaurant that specializes in breakfast fare, located mostly in the South, has increased prices almost 5 times the national Inflation rate. It is not alone, though, with many national chains increasing their prices above the inflation rate.

A typical reason given for this is COVID, with restaurants trying to make up for their losses during the pandemic, when many restaurants limited diners, did only take out, or closed.

As comparison, my wife and I used to go to our favorite restaurant before COVID, and the total bill, including drinks, was typically around 60 dollars. Now, a similar dinner and drinks at the same restaurant is around 100 dollars.

What do you think?

Have restaurants in other countries also increased their prices dramatically?

OneViewpoint · Accepted Answer

That is NOT a list of restaurants. It's a list of corporate chains and franchises. A menu researched by food engineers and cooked by staff that are trained in 8 hours and turn over weekly. Precise combinations of sugar, fat, and salt. The goal is profits not food, not a great experience for customers. I haven't eaten at any of those places in 25 years.

Yes, local privately owned restaurants where I live have increased prices. But between a botched response to Covid in tRumps first term and his moronic intentional triggering of widespread inflation with tariffs, much of it hitting the agriculture sector, that's not surprising. Sure an entree that was $15 ten years ago is now $25. So $10 increase X 2 dinners is a $20 hike in the bill. Meh, I don't really care. A pizza that was $15 is now $20. Gasp, a 33% increase. Still a good deal for 2 people.

WindAtMyBack · Accepted Answer

I try to go to the ones that haven't raised their prices and/or have specials. Last week I had a meal and a margarita for $9.

But to answer the question, I know two things. The ONLY way they can raise prices and stay in business is if people pay the price. If people pay the price, then THEY think the price is reasonable.

I also know the restaurant business is very tough and competitive. It's hard for restaurants to stay in business. They go under all the time, including big chain restaurants. Even with increased prices, they are still going under.

Keep in mind that not only food has gone way up in price. Labor has also. They can't get people to work and have to pay high wages to entice them.

purplepoppy · Accepted Answer

Same in the UK. They blamed covid, brexit, the Polish going back to Poland, Ukraine war, even the weather.

The thing is market forces don't work, they'll use any excuse to raise prices but when things change they never come back down because there's always plenty of people willing to pay through the nose to eat out. In tourist areas like here there's never a shortage of people willing to pay silly money in a restaurant.

I don't mind paying good money for food is it's worth it but it feels like a lot of places are now just ripping people off.

douride2 · Accepted Answer

Same thing here in Canada. The prices have gone crazy. To bad my wages haven't gone up half a much.

James The Foodie · Accepted Answer

During my culinary adventures, I've noticed that many restaurants worldwide have indeed raised prices recently. The reasons aren't solely pandemic-related; factors like rising ingredient costs, supply chain disruptions, and increased operational expenses play a significant role as well. While some increase is understandable, particularly for maintaining quality and supporting fair wages, others seem quite dramatic. Interestingly, in places like Japan and Italy, while some upscale spots became pricier, local eateries often focused on maintaining affordable options, ensuring everyone could still enjoy their beloved dishes. 🍣🍝

Static_In_The_Attic · Answer

As for food it isn’t cheap & as for restaurants unfortunately they have to raise their prices or go out of business. On the other side of things if the restaurant uses cheaper ingredients & the food tastes bad they deserve to go out of business. As for restaurants that serve eggs they are majorly raising prices so I don’t eat at those breakfasts places. As for eggs in the grocery store there is a shortage of eggs so the prices jumped & some up to $10.00 a carton. As for one of my coworkers his family has a farm & I just found found out he is selling eggs at $5.00 a dozen so all of us are placing orders & the eggs are fresh.

Anonymous · Answer

When leftists in Seattle insisted on raising the minimum wage from $7 to $15, high prices had to follow, and a lot of restaurants add "extra fees" on top of that to pay the higher wages.

$15 minimum wage means the guy above that, assistant manager or whatever, has to make $20, and the guy above that has to make $25, and so on.

Then the $15 people wanted $16 because they couldn't afford the higher prices they had caused, then they wanted $17, then $18, now it's over $20/hr.

Minimum wage was intended as a starting point for teenagers just getting their first jobs, not for a 40 year old to support a family of 4.

Fireguy17 · Answer

no.
The cost of their food has gone up, transportation has gone up, labor costs have gone up, utility costs, insurance, taxes you name it, they have gone up.
Couple that with less people going out because of the costs, I'm surprised to see so many of them still open.

exitseven · Answer

My wife and I usually stay away from the chains. There are a few local places we go to. we went to one of them yesterday. It is considerably more money than before Biden was president but nothing out of the ordinary. I think the prices have nearly doubled over the last 4 years which is about what everything else has done.

Massageman · Answer

We've largely given up on eating out, with a couple of exceptions:

1. Free food with charge card points

2. Special event dinners with the family, most notably, "milestone birthdays" such as each decade, etc.

3. One "nice dinner" when WE visit out-of-state kids on our trips. (2 and 3 could be combined into one meal- -who knows).

DrPepper12 · Answer

Yes. Inflation following a pandemic is an economic law. Inviolable. But GLOBAL inflation was ALL sleepy Joe's fault.

If you want reliable comparisons the Economist "Big Mac" index is the best. It shows global phenomenon and food and energy are always susceptible to insane spikes.

KostasKouvalis · Answer

Definitely the general rule of thumb for restauranteurs is to charge 3 times the price it costs you to make, but honestly that's just being greedy. Even with the rise of minimum wage, they would still make a decent profit without raising their prices or only raising them by a dollar. They're just being greedy

strateguy632 · Answer

Not unfairly. Democrats actualy messed up the trucking and delivery and caused shortages woth rten policy. The question is if beef gets cheaper will the restaurant lower prices?

Red_Arrow · Answer

Trips to the food stores can break a person these days. Everything costs more, so restaurants have to pay more for the meals they make from that food.

Douglas1180 · Answer

Honestly, I haven't even noticed, given that I'm a highly paid senior mgmt at the present moment. For my retirement, I plan on losing all the weight I've gained.🤣

NicholasRedone · Answer

@aviatortom Tom ; Captain - I don't mind paying where I go to eat or where I get delivered ; I even tip. Gratefully I even afford to tip Things are given, not entitled to

ProbablyClueless · Answer

I'm sure unreasonable price gauging happened in bigger cities. The price hikes have been reasonable where I'm at though.

ArrowheadSW · Answer

It is hard to say if it is unfair or not. It would require an in-depth analysis of costs of goods over the years. In this recent year, I can see an increase in egg dishes in restaurants going up due to the increased cost of eggs.

sinderella18 · Answer

I think some have as you. pay more but get smaller portions.

Dongie · Answer

You know Tom, I've thought this very thing a couple of weeks ago. Yes, mostly have.

Iron_Man · Answer

yes, they have and the grocery’s stores Net worth it

Anonymous · Answer

Under Trump, everything is set to increase by at least 25% right across the board. With some items, it has already happened. So much for lowering prices.

dreamstar72 · Answer

Look at the rising cost of your own groceries bill, so what do you expect. It the new generation (no not people born) that created the cost of living problem.

Sachem · Answer

Further proof that we need MORE regulation over commerce as price gouging is the result of deregulation and profit maximization.

OlderAndWiser · Answer

I suspect that the major factor is rising labor costs.

Phoenix98 · Answer

I don't eat at restaurants enough to really notice If I'm being honest.

Anonymous · Answer

Food, utilities, taxes and wages are all up Profits were kicked hard by the pandemic Without those rises certainly the 40-50% range they'd probably have gone under

Hispanic-Cool-Guy · Answer

I think so. Punish them back and don't buy there stuff otherwise they have to reason to keep prices at a reasonable level.

chrissykerdock · Answer

yes it's at the point where it's too much

Bklynbadboy12 · Answer

Not just restaurants everything is too expensive especially since Trump is back in office

NathanDavis · Answer

capitalism is not fair...

Anonymous · Answer

Unfortunately, some of them have.

Pterodon · Answer

No I don’t think they have. It was Biden’s fault

robocop666 · Answer

Yup prices are through the roof

jimmy2 · Answer

Its, a rip off

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