economy

Financing

Restaurant menu prices continue to get more expensive

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

Financing

One year later, the economy keeps going strong

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.

Earlier this year, economists—and some big restaurant chain executives—were certain of a recession. Now everybody is certain of a “soft landing.”

The Bottom Line: Restaurant sales increased much faster than prices last month. As much as consumers say they’re frustrated by prices, they continue to dine out.

Limited-service restaurants raised prices 0.4% last month and 6% over the past year, even as grocery inflation continued to ease.

More than 40% of U.S. employees work at least part-time at home. The impact on where and how people dine out has been significant.

The Bottom Line: Large retailers are concerned about a softening consumer and already see evidence that is happening. But restaurant executives seem far more optimistic.

RB editors look at trends and topics that the industry should be thankful for, from casual dining’s survival to brunch.

The Bottom Line: Two-thirds of franchisees told TD Bank that they are optimistic about the future of the restaurant industry and more than half expect higher traffic next year.

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