economy

Financing

Fast-food restaurants are hit hardest as customers cut back

The giant food distributor Sysco said the consumer environment has been tougher on restaurants than expected this year due to higher menu prices.

Financing

Frustrated fast-food customers are apparently heading to Walmart

The retail giant suggested its value is pulling customers away from restaurants, where menu prices continue to increase.

Prices at limited-service restaurants accelerated last month while grocery store prices declined, according to new federal data.

The restaurant industry added 6,600 jobs in April, according to new federal data, continuing a pattern of slower overall job growth.

Prices at restaurants increased slower than the overall rate of inflation in March. But they still increased faster than they did at the grocery store.

Operators complain of frequent fraud and a cumbersome process for getting their money back from delivery providers. “They make nothing simple for you.”

Prices at fast-food and casual-dining restaurants slowed as costs eased and concern mounted about slow industry traffic.

While inflation is moderating, it's not moderating as much for restaurants, which are raising menu prices more aggressively as a result.

The Bottom Line: In late 2022, just about every economist was predicting a recession. Instead, we’ve had a strong economy fueled by a resilient consumer.

The fast-food burger giant contributes $76 billion a year to the U.S. gross domestic product, according to an economic impact report released this week. That impact is spread throughout the country.

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