Restaurant owners say inflation forcing $17 for egg sandwich — here’s the math behind it

Diners already concerned astir nan costs of eating retired whitethorn beryllium disappointed to study that galore restaurants are considering raising prices to support up pinch inflated food and drink costs.

Restaurant guidance package institution Toast precocious released its 2025 Voice of nan Restaurant Industry Survey, revealing that improving profitability was nan apical interest for operators headed into adjacent year.

Operators classed ostentation (20%), trading (16%) and hiring (16%) arsenic their apical 3 business symptom points.

Nearly half of each 712 edifice decision-makers surveyed (48%) said they scheme to summation paper prices if ostentation continues to beryllium a factor.

The National Restaurant Association estimates that, to support a 5% profit margin, the average restaurant needs to raise prices by 31%, according to information compiled by nan D.C.-based manufacture waste and acquisition group earlier this year.

“Raising paper prices is typically a past edifice for edifice operators, but pinch nan rising costs of nutrient and labor, their operating mathematics still has to work,” Chad Moutray, main economist for nan National Restaurant Association, told Fox News Digital.

Small business owners for illustration Michael Brafman, who operates The Sandwich Board successful New York City, are concerned astir it.

“The basal mathematics is immoderate merchandise you have, you disagreement it by .3, and that’s what nan merchandise should costs to nan user to run astatine that patient margin,” Brafman told Fox News Digital. “If nan prices proceed to increase, there’s only [so much] that nan user will beryllium consenting to pay.”

The sandwich shop proprietor said he wrestled pinch this issue during nan ovum crisis.

“I held retired a agelong clip to raise nan [price] of our ovum sandwiches,” Brafman said.

He added, “You tin only get distant pinch charging truthful overmuch for an egg sandwich. . . . Nobody’s spending $17 connected an ovum sandwich conscionable truthful you tin support your margins.”

He tacked connected an other dollar, he said, “which was very marginal, but group were concerned.”

Increasing paper prices tin beryllium an added situation erstwhile nan business is new.

“It’s ever a tenuous statement to walk,” Brafman said. “It is simply a crippled of chicken.”

Since opening The Sandwich Board past year, Brafman said he’s seen a spike successful nan costs of proteins.

“Proteins are expanding exponentially — eggs, dairy, meat, poultry, each of nan halfway parts of nan sandwich,” he said. “When a steak per lb goes from $7 to $11, that’s an unrealistic value increase.”

Passing that disconnected to customers could spell bad news for cost-conscious diners.

“I person group [who] travel present many times per week, and that’s nan fear,” said Brafman. “How galore times will they extremity coming because nan costs is prohibitive?”

John Loeffler, innkeeper and cook astatine The Inn astatine Gristmill Square and Waterwheel Restaurant successful Virginia, said he’s been watching akin trends play out, conscionable astatine a different value tier.

“Beef is ever a huge, immense seller for us. It is 1 of our much celebrated items,” Loeffler told Fox News Digital.

In June, a full loin of certified Angus ribeye costs $14.75 a pound, he said. Today, it’s $17.99.

As costs climb, keeping guests happy becomes astir much than nan nutrient alone, Loeffler said.

“How do you make money, waste group thing that they consciousness good about and consciousness a value, moreover astatine a higher value point?” he said. “I deliberation that’s nan situation facing each restaurants — adding worth arsenic paper prices spell up.”

After 30 years successful nan business, Loeffler said he’s learned to deliberation otherwise astir profit.

“I deliberation astir margins little than percentages,” he said.

His attack often intends absorbing portion of nan costs to sphere nan eating experience.

“At nan extremity of nan day, we’re successful nan business of taking attraction of people, nourishing them, making them consciousness bully … and making them consciousness bully astir spending money. That’s our job.”