Eating out getting more expensive as Americans hit ‘menu price fatigue’ nationwide

Food prices are going up nationwide — and not just in grocery stores.

The U.S. Bureau of Labor Statistics released its latest Consumer Price Index (CPI) report in January, a monthly snapshot tracking inflation in America.

Restaurant prices increased between 0.6% and 0.8% in December, compared with November, the CPI found.

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“The food away from home index also rose 0.7% in December,” the report states.

“The index for full-service meals rose 0.8% over the month and the index for limited-service meals increased 0.6%.”

Restaurant prices increased again in December, according to new Consumer Price Index data released by federal officials. (iStock)

As the latest research leaves families wondering how much they should budget for restaurant meals, Fox News Digital spoke with two experts to find out.

Jeff Hoobler, a managing partner at Steep Ravine Brewing Company in Highland Park, Illinois, said his restaurant is one of the most affordable options in the area — and prices have still gone up.

“Prior to COVID, a family of four could dine with us for approximately $48 plus drinks, taxes and tip,” Hoobler said.

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“That same meal today typically costs about $62 plus drinks, taxes and tips.”

He credited this to the lingering effects of COVID-linked inflation, as well as sharp wage increases.

Consumers “are spending less than they did a year ago.”

“The restaurant industry has always operated on thin margins, and like many others, we were cautious about passing along higher costs,” Hoobler said.

“Over the past four years, we have absorbed a significant portion of these cost increases ourselves. We have also experienced substantial increases on the labor side, as staffing became more challenging and wages increased by as much as 50% for certain positions.”

Diners are often skipping appetizers, drinks and premium menu items to manage higher restaurant bills. (iStock)

Chad Moutray, chief economist for the National Restaurant Association, told Fox News Digital that menu prices rise primarily due to restaurants facing higher operating costs, even as consumers remain cautious about spending. 

“As a result, the median full-service operator posted a profit‑to‑sales ratio of just 2.8% in 2024, with limited‑service restaurants at 4.0%,” he said. 

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“Both remain significantly below pre‑pandemic levels, underscoring the ongoing pressure restaurants face when trying to balance their ongoing cost increases with moderate menu price changes.”

Restaurants face “ongoing pressure … when trying to balance their ongoing cost increases with moderate menu price changes,” said the chief economist at the National Restaurant Association. (iStock)

Many restaurant operators are trying to do more with less amid inflation, said Bo Bryant, a restaurateur who goes by “The Restaurant Giant.”

“Operators are very aware that consumers are suffering from menu price fatigue and the overall value proposition restaurants are offering,” he noted.

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“Unfortunately, many operators are faced with a dilemma: Since they can’t take the necessary price increases they need to maintain their profitability, they will be forced to [reduce] quality in one capacity or another.”

Consumers are increasingly aware of menu price increases, contributing to what experts call menu price fatigue. (iStock)

Despite the increase in prices, the Arizona-based expert said restaurant traffic is still steady — but consumers “are spending less than they did a year ago.”

He added that diners are still opting to eat in restaurants rather than order takeout, but are typically foregoing appetizers, drinks and higher-priced items like steaks.

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Bryant said it’s hard to say what an average meal costs for a family, as it relies on factors that vary widely from state to state. 

All things considered, Bryant said, the “overall outlook is not so bad.”

Consumers “are spending less than they did a year ago” and skipping appetizers and drinks, said one restaurateur. (iStock)

“As general economic conditions continue to improve, we are seeing early signs that consumer confidence is starting to rise,” he added. 

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“We are bullish on our outlook for the casual dining segment to improve this year.”