Few major industries have been hit as hard as the restaurant business in the past five years, starting with the closures that resulted from pandemic lockdowns and mandates, followed by sometimes devastating inflation, even in the Houston area.
Many restaurants are having to raise prices at a time when their own wholesale prices are continuing to rise, and while some are putting stickers over the old prices, some restaurants are rearranging the menus to help make the increases more tolerable, or in some cases more hidden.
"A lot of it is economics-driven, a lot of people are feeling the pinch of inflation, and that's both on the consumer side and on the restaurant side," Houston Hospitality Alliance President Jonathan Horowitz told Newsradio 740 KTRH.
"So restaurants have only one option when it comes to dealing with inflated prices, and that is to raise menu prices."
According to figures noted by CNBC, it's the places that are offering value to consumers and getting creative with the menus and the dining experience that are the winners in today's hospitality industry.
Fast food places have seen their customer traffic drop 2% in 2024 so far and as many as 26 bar and restaurant chains have filed for bankruptcy this year, putting more strain on the industry but also freeing up portions of the market for increased competition.
Mr. Horowitz says, "inflation has impacted not only food costs but labor and rent and everything that goes into running a business, and it's still tough for restauranteurs across the country and here locally.
"Even when there were signs of recovery [after Covid], then you had inflationary issues that increased food costs -- and that goes for the entire industry," Mr. Horowitz noted.
But surprisingly to some, among the hardest-hit segments today are in the middle, restaurants such as Red Lobster, Cracker Barrell and Olive Garden.
"The middle section of the industry, what we call kind of the family dining, either the full-service or quick-service family dining, has really felt the pinch this year."
And it all boils down to what the consumer can afford to pay for breakfast, lunch or dinner, because of -- you guessed it -- inflation.