Coffee, burgers, and burritos are getting pricier as restaurants pass rising costs on to diners

"If you think your burger, burrito, or cold brew already costs too much, brace yourself - restaurant groups say they would have to raise prices by 30% just to stay profitable amid rising costs. In a new survey from the restaurant management software company Toast, nearly half of restaurant operators said they plan to increase menu prices if inflation, tariffs, and labor costs continue to climb."

"The National Restaurant Association estimates that to maintain a modest 5% profit margin, the average restaurant would need to raise prices by 30.3% - a move many owners fear would scare customers away. That's bad news for diners, who're already facing increased costs for favorites including burgers, burritos, and coffee."

"The price hikes are tied to President Donald Trump's aggressive tariff strategy, which a Yale economist told Business Insider in April is expected to cost the average consumer about $3,800 this year - and that was before Trump renewed trade tensions with China on Friday, announcing a new round of tariffs on the country's imports."

Restaurant operators face rising input costs from inflation, tariffs, and labor, prompting many to pass higher prices onto diners. Nearly half of operators plan additional menu price increases if cost pressures persist. The National Restaurant Association calculates a typical restaurant would need roughly a 30.3% price increase to preserve a modest 5% profit margin, a change that risks deterring customers. Popular items such as burgers, burritos, and coffee have become notably more expensive, while only wings and pints of beer tracked below current inflation. New tariffs and renewed trade tensions are further lifting costs for food and ingredients.

Read at Business Insider