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Rising Fast-Casual Restaurant Prices Reflect Larger Economic Trends

No, it’s not a trick of perception; the cost of dining out is indeed on the rise. While the overall increase in living expenses appears to be easing somewhat, the Social Security Administration has announced a 2.5% increase in Social Security and Supplemental Security Income benefits for 2025 compared to 2024. This adjustment highlights the reality that everyday expenses, including meals at some popular fast-casual dining establishments, have been climbing.

In March, FinanceBuzz, a financial resource platform, released a report analyzing price increases in fast-casual restaurants over the past five years, identifying which chains have experienced the most significant hikes.

The report investigated menu prices across 16 well-known restaurant chains in the United States, comparing the prices of the same items over the five-year span. The findings revealed a dramatic overall price surge, with an average inflation rate of 22% nationally from 2020 to 2025, contrasted by an astounding 42% average price increase across the selected restaurant chains.

Among the most notable findings, Waffle House experienced an exceptional price rise, with costs nearly doubling since 2020, marking an increase of 96% on average. This climb in prices is exacerbated by an egg surcharge implemented due to challenges related to the avian flu outbreak.

Breakfast items have seen marked increases, with the cost of hashbrowns at Waffle House jumping from $1.95 in 2020 to $4.20 in 2025—a staggering 110% rise. Additionally, the price of coffee has also surged from $1.80 to $3.15.

IHOP follows closely behind, reporting an average price increase of 82% over the same five-year period. The largest increase was observed in its signature 2x2x2 combo, which saw a price hike of 129%.

These two establishments stand out significantly. However, the report indicates other chains also experienced substantial price increases, albeit to a lesser extent. Texas Roadhouse reported a 46% average price increase, with its Macaroni and Cheese kids meal now costing 63% more than it did in 2020. Other chains with notable increases include TGI Fridays (45%), Applebee’s (41%), and Cheesecake Factory and Hooters (both at 40%).

Fast Facts:

• From 2020 to 2025, fast-casual chain restaurant prices increased by an average of 42%—nearly double the inflation rate of 22%.
• Breakfast-focused chains faced the most significant price hikes, largely due to the nationwide egg crisis, with Waffle House and IHOP leading the pack at 96% and 82%, respectively.
• Longhorn Steakhouse, based in Florida, recorded the lowest price increases at just 26%.

Chris Lewis, the director of digital PR at FinanceBuzz, commented that while many Americans may not be shocked by the ongoing rise in restaurant prices, the extent to which they have risen can still be surprising in comparison to previous years. “Incremental price changes are often overlooked since they occur gradually, but the cumulative effect has been significant,” he explained.

While Lewis did not discourage dining out, he suggested that the findings were intended to make consumers more aware of their spending patterns and encourage them to make informed choices about where to dine.

Fast Casual Chains With the Highest Price Increases

In summary, the inflation rate in the United States has risen by 22% between 2020 and 2025, while many restaurant chains have seen average price increases that are nearly double this rate. This trend in rising costs serves to highlight the challenges faced by consumers as they navigate their dining choices in an ever-evolving economic landscape.

Source
www.foodandwine.com