Key Cost Trends & Forecasts

Commodity Costs Close to All-Time Highs

  • 95% of restaurants have experienced significant supply delays or shortages of key food items in recent months, according to a survey by the National Restaurant Association.
  • Notably, higher beef costs are being driven in large part by a drought across the American West which is shrinking the aggregate national herd and producing smaller animals.

  • Job openings for accommodation & food services were 1.5MM (10.2%) while quits increased to 892k (6.8%).
  • Non-supervisory restaurant wages increased +14.4% to $15.76 in Aug. and Starbucks plans to increase the average hourly wage of its employees with 2 or more years of service to nearly $17/hr. by summer 2022.