1851

As supply-chain issues <a href="https://1851franchise.com/supply-chain-issues-continue-as-fast-food-prices-soar-2717952">continue to wreak havoc</a> on the restaurant industry, yet another blow was dealt last week when the U.S. Department of Labor announced that consumer prices <a href="https://www.bls.gov/news.release/pdf/cpi.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=inflation-hits-40-year-high-of-75-what-it-means-for-restaurants-2717993" target="_blank" rel="nofollow">increased 7.5% for the rolling 12 months</a>, marking the steepest 12-month inflation rate jump since February 1982.Inflation impacts restaurants in a variety of ways, but it hits them hardest in basic food costs. According to the report, the largest 12-month increases in food costs were in meats, poultry, fish and eggs, which rose 12.2 percent over the year. Meanwhile, the index for food away from home rose 6.4% in the last 12 months, including an 8% increase for limited-service meals (fast food, fast-casual, etc.) and a 7.1% increase for full-service restaurants.&nbsp;Combine these statistics with supply-chain issues, the labor shortage and the fact that wages <a href="https://apnews.com/article/business-wages-salaries-increase-8ce98ea3bcc14c4810eb5a1111e1df49?utm_source=1851franchise.com&utm_medium=article&utm_campaign=inflation-hits-40-year-high-of-75-what-it-means-for-restaurants-2717993" target="_blank" rel="nofollow">are rising at the fastest pace in 20 years</a> and it puts restaurants in a position for some difficult decisions ahead, particularly with menu prices, which can be a difficult balance to strike for both franchises and mom-and-pop businesses.`“We’ve had to go up on our prices, which the customer has probably started to notice,” Robert Williams, owner of Alexander’s Great Barbeque in Augusta, Ga., <a href="https://www.wrdw.com/2021/11/02/local-restaurant-feels-impact-rising-inflation-its-struggle-right-now/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=inflation-hits-40-year-high-of-75-what-it-means-for-restaurants-2717993" target="_blank" rel="nofollow">told a local news station</a> in November. “It has decreased our sales some, so we’re trying to adjust with that, but we’ve noticed it because our customer base is starting to decrease some.”According to <a href="https://apnews.com/article/business-long-beach-inflation-prices-consumer-prices-d412bcce554693de469765b34351773d?utm_source=1851franchise.com&utm_medium=article&utm_campaign=inflation-hits-40-year-high-of-75-what-it-means-for-restaurants-2717993" target="_blank" rel="nofollow">the Associated Press</a>, Chipotle said that it has increased menu prices by 10% to offset the rising costs of beef, transportation and higher employee wages, and that it will consider further price increases if inflation keeps rising.It’s unclear whether this is the tipping point or we’re headed for more of the same when it comes to inflation and price increases. But how businesses navigate this uncertain time could determine which flourish, and which become further <a href="https://1851franchise.com/10-franchise-brands-that-did-not-survive-the-covid-19-pandemic-2715801#stories">casualties of the COVID-19 pandemic</a> and its fallout.Related stories:<ul><li><a href="https://1851franchise.com/shuckinshack/how-seafood-franchise-shuckin-shack-stays-ahead-of-the-inflation-curve-2717897">How Seafood Franchise Shuckin’ Shack Stays Ahead of the Inflation Curve</a></li><li><a href="https://1851franchise.com/capitalspring/qsr-magazine-why-value-will-make-a-fast-food-comeback-in-2022-2717678#most-recent-stories">Why Value Will Make a Fast-Food Comeback in 2022</a></li><li><a href="https://1851franchise.com/restaurants-reduce-operating-hours-due-to-staffing-shortages-2717775#industry">Restaurants Reduce Operating Hours Due to Staffing Shortages</a></li></ul>

Inflation Hits 40-Year High of 7.5%: What It Means for Restaurants

1851 Franchise

According to U.S. Department of Labor findings released Thursday, consumer price indexes have risen at historic rates. Here's how it could impact restaurants.

inflation-hits-40-year-high-of-75-what-it-means-for-restaurants

Paris Baguette

Paris Baguette Franchise - Anusha Jonnala and Swapna Varala - 1851 Franchise

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

Minuteman Press International

The Brown Family and team at Minuteman Press in Rancho Cucamonga, CA.

Minuteman Press Franchise Review: 30-Year Legacy in Rancho Cucamonga

minuteman-press-franchise-review-30-year-legacy-in-rancho-cucamonga

Beansquad

BeanSquad Franchise - How BeanSquad Is Taking the Stress Out of Franchise Bookkeeping - 1851

How BeanSquad Is Taking the Stress Out of Franchise Bookkeeping

beansquad-accounting-franchise-bookkeeping

Right at Home

20-Plus Year Right at Home Franchisee Turned Corporate Insights Into a Successful Home Care Business

right-at-home-franchisee-success-gregory-brewer

Crust Pizza Co.

Crust Pizza Co. Builds Major Momentum in 2025 With New Openings, Franchise Growth

Crust Pizza Co. Builds Major Momentum in 2025 With New Openings, Franchise Growth and Smarter Systems

crust-pizza-midyear-growth-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with person in blazer, with laptop, holding sign that reads "LOOKING FOR A JOB"

Uptick in Jobless Claims Points to Continued Instability in Labor Market

jobless-claims-franchise-growth

Extraordinary Brands Acquires CycleBar and Rumble, Shaking Up Boutique Fitness Franchising

extraordinary-brands-cyclebar-rumble-boxing-acquisition

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Planet Fitness Franchisees Donate $100K to Support Texas Flood Relief - 1851 Franchise

Planet Fitness Franchisees Donate $100K To Support Texas Flood Relief

planet-fitness-texas-flood-relief

McDonald’s Is the Latest Franchise To Bet Big on Beverages with 500-Store Premium Drink Test

mcdonalds-is-the-latest-franchise-to-bet-big-on-beverages-with-500-store-premium-drink-test

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Navy Veteran and Professional Artist Couple Open Caring Transitions in Texas

Navy Veteran and Professional Artist Couple Set Out to Build a Purpose-Driven Business With Caring Transitions in Texas

navy-veteran-and-professional-artist-couple-set-out-to-build-a-purpose-driven-business-with-caring-transitions-in-texas

911 Restoration Franchise Costs, Fees, Profit and Data for 2025

911-restoration-franchise-deep-dive

Why This Real Estate Broker Decided To Bring Caring Transitions to Central Texas

Inflation Hits 40-Year High of 7.5%: What It Means for Restaurants

MORE STORIES LIKE THIS