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Economy

mahatmakanejeeves

(66,373 posts) Sun Aug 10, 2025, 05:36 PM Aug 10

Restaurants are under threat as costs skyrocket and consumers cut back

Restaurants are under threat as costs skyrocket and consumers cut back

By Bryan Mena, Sarah Dewberry

A worker at Ike’s Chili in Tulsa, Oklahoma, ...

Ike’s Chili in Tulsa, Oklahoma, has been around for 117 years, surviving a myriad of challenges like the Great Depression, the Covid-19 pandemic and a once-in-a-generation burst of inflation. But 2025 already holds an even more complicated challenge. … “The cost of everything’s just going up, and we’ve got to figure out how to manage it right,” Len Wade, a managing partner at the restaurant, told CNN.

He pointed to surging beef prices as an example, specifically hamburger meat on the wholesale level. In July, those prices were up nearly 21% compared to the same month 10 years ago, federal data shows. And passing the buck to customers might not be the best solution, Wade said.

Local restaurants across the country are reeling as some key costs skyrocket and consumers — who remain nervous about the economy’s future — cut back and become less willing to pony up for higher prices. Taken together, that’s forcing restaurants like Ike’s Chili to scramble for solutions.

“I need to raise my prices again right now, but I’m concerned that I’m going to price people out,” Wade said, adding that the restaurant has considered tweaking the dishes on its menu to cut costs. But doing that, Wade added, could compromise the quality of the product.

{snip}

13 replies

= new reply since forum marked as read

Highlight:

Restaurants are under threat as costs skyrocket and consumers cut back (Original Post) mahatmakanejeeves Aug 10 OP

DUers should start a local dining buddy system bucolic_frolic Aug 10 #1

I think you mean dining at home. That would be ideal: Bernardo de La Paz Aug 10 #3

Double threat: tariff taxes on inputs plus higher production costs for domestic inputs due to ICE. Bernardo de La Paz Aug 10 #2

This economic death spiral of higher costs resulting in fewer consumers will only get worse. sop Aug 10 #4

wholesale hamburger "up nearly 21% compared to the same month 10 years ago" - I can believe 1 year ago progree Aug 10 #5

I saw that. It looks like a typo to me too. mahatmakanejeeves Aug 10 #7

Typo, or something partly written by AI, and the human editor was a vegetarian, and so never had the experience of progree Aug 10 #9

Hmm, FRED says just 32.7% from 6/01/15 to 6/01/25 (that's just 2.87%/year) progree Aug 10 #10

FRED needs to get to the Giant. I was there yesterday (Saturday). mahatmakanejeeves Aug 10 #11

Or the BLS needs to get to Giant (FRED just regurgitates the BLS numbers) progree Aug 10 #12

We are in a FULL fledged recession, I don't care what the numbers say democratsruletheday Aug 10 #6

In our area, piddyprints Aug 10 #8

Here's a silly idea... BWdem4life Aug 10 #13

bucolic_frolic

(51,999 posts)

1. DUers should start a local dining buddy system

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 05:49 PM

Aug 10

There's strength in numbers.

Bernardo de La Paz

(57,666 posts)

3. I think you mean dining at home. That would be ideal:

Reply to bucolic_frolic (Reply #1)

Sun Aug 10, 2025, 06:23 PM

Aug 10

less expensive and an opportunity to enthuse and organize. Just as much fun as partner night out or no need for babysitter: make a party at home and get the kids to help prepare and join in.

My suggestion, pay strict care and attention to the background music. Have a variety of pacings available. Take care of the music and the mood will carry every oversight and oopsie.

Number one rule to make it a success: don't stress out about ANYTHING before, during, and after. Let it happen.

Bernardo de La Paz

(57,666 posts)

2. Double threat: tariff taxes on inputs plus higher production costs for domestic inputs due to ICE.

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 06:20 PM

Aug 10

However, the kind of people who can spend $200 per person at pricey restaurants won't mind paying $250 per. Instead of tipping the staff extra they will send a check to the maga party ~~running~~ ruining things in DC.

sop

(15,620 posts)

4. This economic death spiral of higher costs resulting in fewer consumers will only get worse.

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 06:24 PM

Aug 10

Who will Trump blame when small businesses start failing en masse throughout America? Biden? Radical socialist Democrats?

progree

(12,240 posts)

5. wholesale hamburger "up nearly 21% compared to the same month 10 years ago" - I can believe 1 year ago

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 06:43 PM

Aug 10

but 10 years ago? That's only a 1.92% annual inflation rate.

1.019245^10 = 1.21000

mahatmakanejeeves

(66,373 posts)

7. I saw that. It looks like a typo to me too.

Reply to progree (Reply #5)

Sun Aug 10, 2025, 08:04 PM

Aug 10

And good evening.

progree

(12,240 posts)

9. Typo, or something partly written by AI, and the human editor was a vegetarian, and so never had the experience of

Reply to mahatmakanejeeves (Reply #7)

Sun Aug 10, 2025, 09:20 PM

Aug 10

fainting at the meat counter when seeing the prices. And good evening

progree

(12,240 posts)

10. Hmm, FRED says just 32.7% from 6/01/15 to 6/01/25 (that's just 2.87%/year)

Reply to mahatmakanejeeves (Reply #7)

Sun Aug 10, 2025, 09:59 PM

Aug 10

These are the June numbers, they just denote them as "6/01/yyyy". We get the July numbers on Wednesday.

AI responded with (what's in the excerpt boxes):

Table Data - Producer Price Index by Commodity: Processed Foods and Feeds: Beef and Veal Products, Fresh or Frozen
Title Producer Price Index by Commodity: Processed Foods and Feeds: Beef and Veal Products, Fresh or Frozen
Series ID WPU022101

https://fred.stlouisfed.org/series/WPU022101

It's not seasonally adjusted, but since it's the same month in the two years being compared, seasonal adjustment shouldn't affect it much (I'd say not at all, but I've found from prior work that seasonal adjustment does affect even when comparing the same months in different years)

Also, it's up (just) 9.3% from a year ago.

My google search:

wholesale ground beef prices compared to 10 years ago, per the producer price index

AI responded with data from the above series, but slightly incorrectly.

Then it also included a quote from YOUR article!!!!!!!!!

Specifically for ground beef:
Wholesale hamburger meat prices were up nearly 21% in July 2025 compared to the same month in 2015, according to federal data.

with a link to:

Restaurants are under threat as costs skyrocket and ... - KCCI
Aug 10, 2025 -- Ike's Chili in Tulsa, Oklahoma, has been around for 117 year...

The actual link:
https://www.google.com/url?sa=i&source=web&rct=j&url=https://www.kcci.com/article/restaurants-are-under-threat-as-costs-skyrocket-and-consumers-cut-back/65646148%23:~:text%3DAdvertisement-,He%2520pointed%2520to%2520surging%2520beef%2520prices%2520as%2520an%2520example%252C%2520specifically,Chili%2520to%2520scramble%2520for%2520solutions.&ved=2ahUKEwj-3vjlzYGPAxVZ3skDHY1FNaUQ1fkOegQICBAZ&opi=89978449&cd&psig=AOvVaw1XZcq8DD9ytCizF6yqeAlj&ust=1754962200989000

mahatmakanejeeves

(66,373 posts)

11. FRED needs to get to the Giant. I was there yesterday (Saturday).

Reply to progree (Reply #10)

Sun Aug 10, 2025, 10:04 PM

Aug 10

and meat is getting ridiculous.

Giant grocery stores are around Baltimore and DC. They’re owned by Ahold.

progree

(12,240 posts)

12. Or the BLS needs to get to Giant (FRED just regurgitates the BLS numbers)

Reply to mahatmakanejeeves (Reply #11)

Sun Aug 10, 2025, 10:54 PM

Aug 10

Here's the BLS seasonally adjusted PPI (Wholesale prices) data series link
http://data.bls.gov/timeseries/WPSFD4

and the not-seasonally-adjusted PPI
http://data.bls.gov/timeseries/WPU022101

democratsruletheday

(1,472 posts)

6. We are in a FULL fledged recession, I don't care what the numbers say

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 07:30 PM

Aug 10

I live in West MI (just north of Grand Rapids) and we have so many restaurants going out of business day to day, week to week it's hard to keep track. Just a bloodbath, and that's no lie.

piddyprints

(15,005 posts)

8. In our area,

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 08:22 PM

Aug 10

Restaurants are adding 3% to the bill if you use a credit card. New menus show higher prices, but then the server comes to the table to say that some of the things are more than the news menu says.

People are going to have enough trouble affording groceries. Eating out will be cut for many families. I know we’re cutting down from our normal 2-3 times/month. I really don’t care if I never eat out again, but my husband likes it.

BWdem4life

(2,645 posts)

13. Here's a silly idea...

Reply to mahatmakanejeeves (Original post)

Sun Aug 10, 2025, 10:57 PM

Aug 10

Stop serving people more than they can eat in 3 days.

Reply to this discussion