The restaurant industry faces a severe crisis as food costs hit alarming levels in 2025. Prices have risen steadily since 2019, severely squeezing already thin profit margins.
These numbers reveal a harsh reality for restaurants today. Food inflation is just one challenge among many financial hurdles. Restaurant owners also grapple with rising labor costs while fighting to retain staff, often spending more on recruitment, onboarding, and training. Labor accounts for 36.5% of a typical restaurant's total sales—up 31% over the past four years. Hiring and retaining talent has become one of the greatest operational burden.