economy

Financing

Fast-food menu price inflation is accelerating as deflation hits grocers

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

Financing

Restaurant job growth appears to be slowing

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.

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.

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