Inflation Takes a Bite at the Restaurant Industry; How Can Operators Cope?

As is the norm in the widespread economic landscape of 2022, inflation has well-and-truly hit the restaurant industry. In August of this year, the cost for consumers of purchasing food away from home rose by 8.3 percent compared to the same period in 2021. Additionally, menu prices at casual dining establishments rose by an average of 9 percent year over year from 2021. This inflation at the customer--facing end of the restaurant business has largely been fuelled by rapidly increasing operating costs – by as much as 11.7 percent. Making this problem more cogent is the fact that inflation isn’t forecast to ease until late next year, where it is predicted to fall to 3-to-4 percent by the end of 2023, according to economic projections by Kiplinger. 

This introduces a unique challenge to restaurateurs, but is still applicable for many businesses. According to a poll from Ipsos, meals purchased at restaurants and take out foods are usually the first extraneous expense to be cut by…