Restaurant inflation is edging up

May 17, 2011
Thanks to the recession, 2010 was a year of $5.99 lunchtime specials, dollar-menu bargains and 2-for-1 meal deals;2011 is turning out to be quite different.

Rising commodity prices and the high cost of gasoline have finally broken the budget-minded approach that restaurants embraced to keep their cash-strapped customers coming.

Across the United States, in chain after chain, menu prices are climbing — or portions are shrinking — as restaurants contend with across-the-board increases in the cost of everything from pork to plastic cups.

So far, the price increases have been incremental and nearly negligible — 1% seems to be the norm — but federal agencies predict that relief won't arrive for restaurants until next year, meaning more increases could be ahead.

By the time 2011 ends, expect restaurant prices to be 3% or 4% higher, according to the U.S. Department of Agriculture.
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