Welcome to Restaurant Business’ Week in Review for the week of Feb. 3, 2025.
On-again, off-again tariffs
When it comes to this new presidential administration, it’s easy to suffer from a bit of whiplash. The week started with much concern from businesses and consumers about the potential impacts of tariffs planned by the Trump administration. The now-delayed 25% tariffs on goods from Canada and Mexico, as well as 10% tariffs on China, would likely drive up costs for restaurants on a wide range of commodities and other imported goods. One think tank, the Tax Foundation, estimated the tariffs will shrink the economy by 0.4%.
But Chipotle is prepared
The tariffs are currently on hold for a month. But if those tariffs do happen, Chipotle Mexican Grill said it is prepared. Chipotle, in announcing its fourth-quarter earnings, said it’s working to save money in other areas and is shifting ingredient sourcing to other countries. It’s investing in back-of house equipment to boost efficiency and has already shifted some product sourcing to tariff-free countries like Columbia, Peru and the Dominican Republic.
Menu price hikes slow
Good news: Restaurant menu price inflation appears to be slowing and returning to a normalized rate, according to new Technomic data. Prices were up just 1.4% in the fourth quarter. Only upscale restaurants saw menu prices increase. At fast casuals and casual-dining chains, prices increased just 0.5% quarter over quarter, with fast-food prices rising 0.89%, according to the latest Pricing Index from Technomic, a Restaurant Business sister company.
Ready for the Egg Wars?
How bad are egg prices getting? So bad that all-day breakfast chain Waffle House has added a temporary 50-cent per egg surcharge. Competitor Cracker Barrel, meanwhile, said it is not only keeping its egg prices the same, it’s offering double loyalty points on all egg dishes through Wednesday.
Starbucks caffeinates its marketing
Starbucks’ marketing has gotten a jolt of caffeine. The coffee chain is planning a Super Bowl pregame ad and is offering free coffee to all loyalty members the day after the big game. It’s billing Feb. 10 as Starbucks Monday. It’s all part of the wide-ranging comeback strategy being implemented by new-ish CEO Brian Niccol, as he looks to reverse the chain’s sales slide.
ICYMI
Restaurant Business editors produced some fabulous stories this week:
A once-thriving Pizza Hut franchisee’s business went sideways and he lost $97 million.
What’s next for one of the country’s most-celebrated independent restaurants after the brothers who own it part ways?
Subway took its sandwich ingredients and turned them into a fine-dining meal.
There’s a brouhaha brewing among the business partners of a Florida-based Twin Peaks franchise.
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