Why Inflation is Pushing Restaurant Consumers Downmarket

Sam’s Thoughts:

Hi there. I’m Sam Oches, Editor in Chief of Nation’s Restaurant News. Restaurants have been battered by inflation in the past year. You’re especially seeing this in the increase in cost of goods. They have had to pass this along to the customer by increasing their prices. A lot of the restaurants in the past year or so have increased their prices by about 10%.

The result has been that their sales are going up. We’re seeing now in the reports of Q3 earnings. That a lot of the restaurant companies, major restaurant companies, their sales are up, but that’s mostly due to the fact that they’re increasing their prices. Traffic is not up as much as sales are.

And in fact in some instances it’s down. Customers are responding to inflation, of course. They’re trading down. They might be going from casual dining to fast casual. Fast casual to quick service restaurants. They’re looking for cheaper meals. Respo restaurants are also offering some value opportunities.

They’re bundling and trying to find ways to get customers in the doors through more perceived value. Restaurants are also trying to streamline their costs by looking toward technology and other. Labor saving opportunities as a way to save money and not have to continue passing the increased cost onto customers, particularly as we head toward a recession and restaurants very much would like to see consumers continue to come in the doors, turn to restaurants for their meal occasions.

Follow us on social media for the latest updates in B2B!

Image

Latest

wireless LAN radio
Icom’s Wireless LAN Radio System: Redefining Communication in the Commercial Boating Industry
July 8, 2025

Icom’s Senior Sales Manager, Ray Novack, joins Rick Waedekin, Icom’s West Coast Rep and Coast Marine Marketing President, for a conversation at the Pacific Marine Expo. They discuss Icom’s new wireless LAN radio system designed to improve marine communication through secure, internet-based connectivity. These radios are compact, waterproof, and built to handle rugged conditions. Unlike…

Read More
wireless LAN radios
Icom’s Wireless LAN Radios Are a Game-Changer for Remote Lodging Operations
July 8, 2025

In a short conversation at Pacific Marine Expo, Rick Waedekin, West Coast Sales Rep for Icom, speaks with Sean Cleary, owner of Radar Alaska, about Icom’s new wireless LAN radios. Sean highlights how these radios could benefit remote lodges in Alaska by improving communication about guest locations, employee coordination, and supply tracking. He explains…

Read More
IC-M25 EVO
Unboxing the Slim and Rugged IC-M25 EVO VHF Radio from Icom
July 8, 2025

Makayla Servidad, Sales Admin at Icom, unboxes the blue version of the IC-M25 EVO—an upgraded handheld marine VHF radio that combines modern design with everyday functionality. The unit features USB-C charging, a slim and lightweight frame, and a textured grip for comfortable handling. Included in the box are a flexible antenna, a USB-C cable,…

Read More
security industry
Balancing Innovation and Mission: How the Security Industry Navigates Risk and Growth
July 8, 2025

The security industry is at an inflection point. Rapid technological advancements—like AI, cloud platforms, and big data—are revolutionizing how security solutions are deployed and consumed. At the same time, the profile of the security buyer is changing, with IT, HR, and compliance leaders playing a much bigger role in decision-making. As these shifts accelerate, businesses…

Read More