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.

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