Restaurant menu prices slowed slightly last month and food costs fell
Food costs declined in June, according to new federal data released this week, as inflation cools.
July 16, 2026
Food costs fell last month, according to federal data released this week, providing some potential relief for a restaurant industry beset by profit challenges.
The producer price for food declined 0.6% in June, according to the U.S. Bureau of Labor Statistics (BLS). Food costs are up 1.8% over the past 12 months.
Restaurant menu price inflation slowed to 0.2% in June, from 0.3% in May, according to the BLS. Food away from home prices are up 3.4% over the past year.
For limited-service restaurants, prices are up 3.1%. At full-service restaurants they are up 3.7%.
Prices at grocers and other food retailers are up 2.7% over the past year.
Overall consumer prices, however, declined 0.4% in June, though prices are up 3.5% over the past year. The June numbers indicate an unexpected rate of decline in the key inflation metric.
Beef costs showed signs of easing. The producer price of beef declined 1.5% last month, though they are up 12.7% over the past year and remain at historically high rates. High beef costs have hurt fast-food burger and casual dining steak chains thanks to a combination of low supplies and continued demand.
Chicken prices, on the other hand, are down 14.8% over the past year and declined 2.2% last month.
Egg prices, meanwhile, are down 77% over the past year. But prices for vegetables are up 59%.
Easing food costs, coupled with a more favorable labor market, could provide some relief for restaurants dealing with weak sales, a heavy value environment, and profit declines. More than four in ten restaurants were not profitable last year, while franchisees file for bankruptcy and operators close locations.
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.
Content Spotlight
The Technomic Top 500: Another tough year for chain restaurants
Top 500 chain restaurant sales slowed again in 2025 as consumers cut back on dining, but sectors like coffee, beverages and snacks and chicken thrived
Featured
Jul 16, 2026
Jul 8, 2026
Recent News
Content Spotlight
Get to know Rick Cardenas, the Darden CEO who started there as a busser
The executive shares his advice, along with his most-binged TV show, favorite sports team, and most-used app
Source: This story originated with Nation's Restaurant News.
View Original Article →