economy

Financing

President Trump's sweeping new tariffs create more potential disruption for restaurants

The Administration announced a broad set of tariffs of at least 10% on trading partners around the world on "Liberation Day." The move roiled markets and added more uncertainty to an already unsteady economy.

Consumer Trends

Consumers are feeling increasingly gloomy about the future

Their six-month outlook plunged to a 12-year low, reflecting concerns about tariffs and inflation. It's a worrying sign for restaurants, though there are some glimmers of hope.

The Bottom Line: As off-premises sales at restaurants have taken off over the past five years, more consumers are eating alone, and often in their cars. What is the impact on the industry?

A Deeper Dive: Rich Shank, senior principal with Technomic, joins the Restaurant Business podcast to talk about the state of the industry so far in 2025.

The industry, which has seen a number of layoffs this year, shed 27,500 jobs in February, its second straight month of declines.

The Bottom Line: President Trump’s tariffs have added another degree of uncertainty to the economy, adding to what is already turning into another tough year for restaurants.

The trade group said that a 25% tariff on food and beverage products from Mexico and Canada would cut profits for the average operator by 30%.

The Bottom Line: The year is starting out just like last year, with big bankruptcy filings, weaker-than-expected sales results and layoffs. So much for cautious optimism.

Food away from home prices grew at less than half the rate as grocery prices. Egg prices took off in January.

The president says he will enact levies on two metals that are key for both construction and equipment manufacturers. Will this raise the cost of restaurant expansion?

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