Slowing Down Pricing Increases for Fast-Food Eateries, Yet Within Reasonable Limits
Article Title: Menu Prices at Full-Service and Limited-Service Restaurants Continue to Rise, According to June Data
In a recent report, it has been revealed that menu prices at full-service restaurants increased by 4.0% year-over-year in June 2025, while limited-service restaurants saw a 3.5% increase during the same period [1][4]. This data, published by various sources, indicates a steady upward trend in menu prices overall, with a 0.4% rise in June [1].
This annual increase for full-service restaurants has moderated from higher peaks in 2022, when it reached 9.0%, and limited-service price increases have also slowed from a peak of 8.2% in April 2023 [1]. Early 2025 data also showed similar trends, with full-service menu prices rising about 4.1% year-over-year compared to 3.4% for limited-service restaurants [3].
These figures suggest that full-service restaurants experienced a slightly higher menu price inflation both in June and over the past year compared to limited-service restaurants, reflecting ongoing elevated but easing price pressures in both sectors [1][3][4].
The food away from home prices also increased by 0.4% in June, up from a 0.3% increase in May [2]. Limited-service restaurants slowed their price increases, raising prices by 0.2% in June and 3.5% over the past year [1]. Fast-food and other limited-service restaurants increased prices by 0.5% in June [1].
Interestingly, fast-food and other limited-service restaurants are engaged in a value war to attract customers, potentially holding back on price hikes due to traffic challenges and consumer frustration over post-pandemic inflation [5].
Grocers and other retailers raised prices by 0.3% in June and 2.4% over the past year [2]. Consumer prices overall accelerated in June, rising 0.3% compared with 0.1% in May [6]. The federal data released on Tuesday shows an increase in prices for food at restaurants, bars, schools, and other locations in June [7].
Economists are paying close attention to consumer prices due to the potential impact of the Trump Administration's tariff policies, which could drive up costs of imported goods such as bottled wine and electronics [8].
As the Editor-in-Chief of Restaurant Business, with a focus on quick-service restaurants, restaurant finance, mergers and acquisitions, and the economy, I will continue to monitor these trends and provide updates on how they impact the restaurant industry.
Sources:
[1] National Restaurant Association [2] Bureau of Labor Statistics [3] Restaurant Business Online [4] Food Dive [5] QSR Magazine [6] The Wall Street Journal [7] Reuters [8] Bloomberg News
In the light of the current market trends, restaurant finance is of significant concern for both full-service and limited-service restaurateurs, as menu prices continue to rise, with full-service restaurants experiencing a slightly higher increase compared to their limited-service counterparts. The restaurant business, therefore, is grappling with ongoing price pressures due to cost inflation.
