12:50 p.m. ET, June 12, 2024
The cost of dining out is still going up
People have lunch at a restaurant at the Moynihan Train Hall on May 11, 2023, in New York City.
Gary Hershorn/Getty Images
Grocery prices stayed flat in May, after ticking down the month before. But menu prices, a source of frustration for budget-conscious consumers, are still going up — even as restaurants brag about their discounted meals.
Menu prices rose 0.4% at sit-down restaurants from April to May, adjusted for seasonal swings, according to inflation data released Wednesday by the Bureau of Labor Statistics. In that time, prices ticked up by 0.2% at limited service spots, which include fast casual and fast food joints.
The difference between grocery increases and menu price inflation was more pronounced for the full year. Grocery prices rose 1% in the 12 months through May. In that period, menu prices at full-service, or sit-down, restaurants rose 3.5%. They jumped 4.5% at limited-service restaurants, which include fast food and fast casual joints.
Those increases, particularly in fast food prices, have caused customers to pull back, eroding the sector’s reputation for affordability.
Restaurant chains raise menu prices every year, but the pace has increased since the pandemic. While higher prices didn’t scare people off at first, customers seem to have had enough, leaving chains to reverse course.
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