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Restaurant Menus Surge 8.4% on Toast's 2024 Report

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  //food-wine.news-articles.net/content/2025/12/18 .. rant-menus-surge-8-4-on-toast-s-2024-report.html
  Published in Food and Wine on Thursday, December 18th 2025 at 10:48 GMT by Food & Wine

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Restaurant Menus Are Getting Pricier – A Deep Dive Into Toast’s Latest Report

If you’ve been watching your dining out budget tighten this year, you’re not alone. Food & Wine’s recent article, “Restaurant Menu Price Increases: Toast Report,” pulls back the curtain on a data‑driven look at how restaurant prices are shifting across the United States. Drawing on a comprehensive Toast report that surveys tens of thousands of menus, the piece outlines the scope, drivers, and implications of a wave of price hikes that are making the dining experience a little more expensive for most of us.

The Data Backbone: Toast’s 2024 Restaurant Menu Report

The core of the article is the Toast report, published by the popular restaurant technology provider. Toast collects data directly from its software customers—over 50,000 restaurants that use its point‑of‑sale, reservations, and inventory systems. The report aggregates menu changes across the U.S. over a twelve‑month period, giving a granular view of how much, when, and why restaurants are adjusting prices.

Key findings include:

• Average Menu Price Increase: 8.4% overall. This figure is the headline of the article and is broken down by cuisine and price category. Fine‑dining establishments saw a slightly higher increase (9.2%) compared to casual chains (7.6%).

• Fast‑Casual vs. Full‑Service: Fast‑casual spots reported a 7.1% rise, whereas full‑service restaurants experienced a 9.0% hike. This aligns with the article’s observation that higher‑margin restaurants can absorb costs differently.

• Geographic Variation: The Northeast and West Coast saw higher price increases (up to 10.5%) than the Midwest (6.3%). The article notes that regional food‑cost inflation and labor shortages play a role.

• Top‑Selling Menu Items: Burgers, pizzas, and pastas – the staples in many U.S. restaurants – saw price increases ranging from 7% to 10%. The article highlights that ingredients such as beef, cheese, and olive oil have all risen in price due to supply‑chain disruptions.

The Drivers Behind the Numbers

The Food & Wine article doesn’t stop at raw data; it dives into the reasons why restaurants are turning up the price dial.

1. Rising Food Costs

The report links the increase to a surge in the cost of key ingredients. A separate link in the article leads to a Food & Wine feature that examines how the global supply chain, tariffs, and climate‑related crop failures have pushed up prices for staple items. In the Toast report, 53% of restaurants noted “ingredient cost inflation” as the primary reason for the hike.

2. Labor Shortages and Wage Increases

The article points out that labor shortages, especially in the West Coast, have pushed wages higher. A link to a Toast blog post titled “Labor Market Trends in the Restaurant Industry” shows that the average hourly wage in the hospitality sector rose 4.2% in 2023. Restaurants are passing a significant portion of these costs on to customers.

3. Inflation and Operating Costs

The U.S. Bureau of Labor Statistics reported a 7.1% inflation rate in 2023. The article ties this macro‑economic trend to rising utility bills, rent, and other operational expenses, which collectively force restaurants to adjust menu prices.

4. Strategic Menu Engineering

Another link in the article directs readers to a Toast whitepaper on “Menu Engineering.” It explains how restaurants strategically adjust prices to maximize profit margins, especially on high‑margin items such as desserts and drinks. This tactic has become even more important in a climate of tighter margins.

What It Means for Diners

While the numbers paint a clear picture of increasing prices, the article contextualizes the impact on the average diner.

• Average Impact on Restaurant Bills: For a typical $50 dinner, an 8% increase translates to an extra $4. The article includes a short “What This Means for You” sidebar, suggesting that diners may need to budget an additional 10–15% for eating out.

• Shifts in Dining Patterns: A quick reference to a Food & Wine piece on “Changing Consumer Dining Habits” reveals that more people are turning to takeout or delivery services, which can be priced differently than dine‑in menus.

• Restaurant Response: The article quotes several restaurant owners who say they’re exploring value‑added menu items, combo deals, and loyalty programs to offset the cost burden. A link to an interview with a regional chain’s CEO illustrates how some are bundling items to maintain perceived value.

Broader Context: Industry Trends

The Food & Wine article links to a Toast report on “Restaurant Industry Trends 2024,” offering a broader perspective. This supplemental data shows:

• New Restaurant Openings: A 12% decline in new openings in 2023 compared to 2022, largely due to cost pressures.
• Profit Margins: Average gross profit margins have slipped from 29% to 26%, with food cost as the biggest drag.
• Technology Adoption: 74% of surveyed restaurants are investing in AI‑driven inventory management, which could help reduce waste and eventually stabilize prices.

Final Take‑away

In sum, the Food & Wine article synthesizes Toast’s robust data into an accessible narrative that explains why menu prices are on the rise. From ingredient inflation to wage hikes, the drivers are multiple and interconnected. The article also provides actionable insights—such as tracking regional price variations and exploring cost‑control strategies—for restaurant operators, and offers diners a realistic sense of how much extra they might pay next time they dine out.

With an average price increase hovering around 8.4%, the report underscores that the restaurant industry is navigating a complex landscape of supply‑chain challenges, labor market dynamics, and macro‑economic forces. Whether you’re a restaurant owner, a foodie, or just a curious reader, the Toast report—and the Food & Wine article’s analysis—offer a comprehensive snapshot of the current state of dining costs in America.