6 Ways Tariffs Could Increase Fast Casual Food Costs

This article first appeared in Fast Casual.

The U.S. restaurant industry is feeling the squeeze as tariffs continue to drive up the cost of imported goods. The National Restaurant Association estimates that a 25% tariff on food and beverage products imported from Mexico and Canada could cost U.S. restaurants more than $12 billion. At the same time, inflation pressures are also weighing in, with the Consumer Price Index showing a sharp 0.4% rise inmenu prices in February 2025 — the steepest increase since June 2024. This marks a continued trend, with menu prices climbing 3.7% over the past year, up from 3.4% in January.

For fast casual restaurants, these rising costs are hard to ignore, especially as key ingredients begin to see price hikes. The impact is being felt across the board, from chicken and beef to potatoes and fresh produce. As restaurant operators face the challenge of balancing rising costs with maintaining menu quality, understanding how tariffs are affecting these common ingredients is crucial for making informed decisions about sourcing, pricing, and menu adjustments.

Read the full article in Fast Casual.