Alicia Kelso - 10 Minutes News for Hoteliers

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2 min

Menu prices remain stubbornly high as overall inflation moderates

📈 The Consumer Price Index (CPI) rose by 0.2% between September and November, with a 2.7% increase from November 2024, as reported by the U.S. Bureau of Labor Statistics. Economists expected a 3% to 3.1% rise. Restaurant prices surged 3.7% year-over-year, while grocery prices increased only 1.9%. Limited-service restaurant traffic dropped 2.9% year-over-year in November, marking 32 consecutive months where restaurant pricing outpaced grocery pricing.

2 min

Restaurants add nominal jobs ahead of busy holiday season

📈 November 2025, the U.S. unemployment rate rose to 4.6%, the highest since 2021. The economy added 64,000 jobs, despite a 43-day government shutdown. Eating and drinking places added 5,600 jobs in November, marking five consecutive months of growth. The industry gained 120,000 jobs in the last five months, surpassing pre-pandemic levels by 196,000 jobs (1.6%). Idaho, Utah, South Dakota, and Nevada saw the highest employment gains, while 17 states remain below pre-pandemic levels.

3 min

Washington, D.C., restaurant traffic hit by government shutdown

📈 The U.S. government shutdown, ongoing for one month, is projected to cost $7-$14 billion. Washington, D.C.’s $8 billion restaurant market, with 2,660 establishments, is heavily impacted. Upscale restaurants face a 6.8% drop in traffic and a 5.7% drop in sales. The shutdown, combined with consumer pessimism and fewer government employees, exacerbates the situation. The Cheesecake Factory anticipates a 1% revenue decline for Q4. Analysts suggest a conservative outlook as companies like CAVA and Sweetgreen face high exposure in D.C.

5 min

Innovation, investment critical as restaurant growth slows

🍽 In 2025, the restaurant industry is facing sluggish growth with nearly 60% of companies reporting negative same-store sales. Technomic has adopted a scenario-based model due to the market's underperformance. Fast-casual traffic is declining, while Gen Z is increasing visits to casual-dining chains. About 25% of Gen Z’s spending goes to casual dining. Menu prices rose 3.7% in September 2025, with consumers anticipating further increases. Operators expect costs to rise, and 60% plan further price hikes. 80% of consumers worry about inflation.

2 min

Nearly 40% of Americans are dining out less frequently

🍽 37% of Americans are dining out less frequently than a year ago due to high menu prices and macroeconomic pressures. 82% report increased restaurant prices, with a 3.7% rise from September 2024 to September 2025. To cut costs, 60% opt for cheaper eateries, and 53% use discounts. BOGO deals attract 58% of diners. Loyalty programs could entice 77% of them. Survey data from 1,500 adults highlights these trends.

2 min

The menu and grocery price gap shrunk in September

💸 Inflation in September rose 0.3% month-over-month and 3% year-over-year. Grocery prices increased by 2.7% year-over-year, while menu prices jumped 3.7%. Full-service meal costs rose 4.2%, with limited-service meals up 3.2%. The gap between menu and grocery prices narrowed to a low since March 2023. 82% of Americans cite increased menu prices; 54% altered dining habits to cut costs. Restaurant deal-seeking peaked, with 30% of visits involving a deal.

2 min

The AWS outage left many restaurants scrambling

📶 On October 20, 2025, a significant outage hit Amazon Web Services (AWS), affecting over 1,000 companies globally. McDonald’s and Starbucks apps were down, impacting 7,000 and 1,500 users, respectively. Delivery services like DoorDash and Grubhub were disrupted, and restaurants using the Toast system faced failures. The outage incurred billions in losses and highlighted reliance on cloud infrastructure. Services resumed by Monday afternoon, but the incident showcased the vulnerabilities of modern digital dependency.

1 min

Opa Restaurant Group files for Chapter 7 bankruptcy

🍴 Opa Authentic Greek Cuisine filed for Chapter 7 bankruptcy in the Northern District of California. Assets and liabilities are both listed between $100,000 and $500,000. Five locations—Campbell, Morgan Hill, Santa Clara, San Jose, and Walnut Creek—closed. Co-debtors include CEO Molly Adams and Marcus Adams. Opa started in San Jose in 2008 and expanded to six locations. U.S. bankruptcy filings increased by 11.5% over last year, reaching the highest level since 2010.

2 min

Younger consumers pull back their restaurant spending

💸 Millennials and Gen Z are underperforming in restaurant spending in 2025, with nearly a 1% decline year-to-date. Financial stress is noted, with millennials holding less than 10% of national wealth and 42% of Gen Z under 30 barely getting by. By late 2024, younger U.S. zip codes saw a reversal in restaurant traffic trends, trailing by 0.9 percentage points in 2025. 64% of Gen Z are cutting expenses, with 41% reducing dining out.

2 min

Full-service menu prices jump at their highest rate since 2023

📈 The Consumer Price Index rose by 2.9% in August 2025, the highest since January, with Trump's tariffs impacting inflation. Food prices increased by 3.2% annually, with grocery prices up 2.7% and restaurant prices up 3.9%. The South led menu price growth at 4.1% annually. Grocery inflation outpaced restaurant prices for the first time since March. Despite this, restaurant inflation surpassed grocery inflation for 29 consecutive months. Analysts suggest inflation impacts restaurant sales in 2025.

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