Gas prices are back above $4 a gallon
After a brief summer respite, the price of gas is returning to levels from earlier this spring, which hurt restaurant traffic.
July 23, 2026
Don’t look now, but gas prices are back above $4 a gallon.
According to AAA, the price of a gallon of regular gas is $4.09, up from $3.94 a week ago. The price is following a renewed uptick in the price of oil. A barrel of oil is up 26% over the past month, and 16% over the past week.
All this is the result of a flare-up in the Iran War amid signs that the U.S. is preparing to ramp up its military operations in the Middle East.
The result will likely keep a lid on restaurant traffic this year, likely thwarting a potential industry recovery following years of weak results.
Restaurant traffic took a hit this spring following the spike in gas prices with the start of the war, as the higher prices ate into consumer spending power.
Fast-food traffic declined 1.2% in the second quarter, according to data from Revenue Management Solutions.
Gas prices had been coming down in recent weeks as a ceasefire took hold and cargo ships began moving through the Strait of Hormuz. That provided at least some hope that traffic could improve later this year.
The higher prices, and a cyclospora outbreak, have knocked back some of that hope. Almost every restaurant stock was down through late-morning trading on Thursday. Restaurant stocks are down more than 2% over the past week, according to our AI-generated index, though they remain up nearly 13% so far in 2025.
About the Author
Jonathan Maze
Editor in Chief, Restaurant Business
Restaurant Business Editor-in-Chief Jonathan Maze is a longtime industry journalist who writes about restaurant finance, mergers and acquisitions and the economy, with a particular focus on quick-service restaurants. He writes daily about the factors influencing the operating environment, including labor and food costs and various industry trends such as technology and delivery.
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