10/29/2025
We would like to share some thoughts from regarding what is happening in the Texas restaurant industry. It is a clear sign what is to come, and we must be prepared.
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The Texas Restaurant Association released its latest economic outlook, and itâs time we pay attention. This isnât panic, itâs time to make plans and strategize. Texas has one of the largest restaurant economies in the country, over $100 billion in annual sales and more than 1.4 million people working across restaurants, bars, bakeries, food trucks, school kitchens, catering operations and more. We are one of the largest employers in the state, one of the major economic circulatory systems in our communities, and one of the last standing places where people still gather, still talk, still share meals across difference.
But the TRAâs new report shows what many of us have been feeling behind the scenes: pressure is building. Ingredient costs remain significantly higher than they were before the pandemic, wages have increased to keep staff, processing fees and overhead have quietly crept up, and now, consumer traffic is slowing. That combination means margins which were already razor thin are narrowing even further. On average, the combined cost of food, labor and occupancy eats up roughly 70 cents of every dollar of sales. Many restaurants are now operating at or below the profit levels they had years ago, even while working twice as hard.
The TRAâs survey reveals that only 48% of Texas restaurants currently have enough employees to meet existing demand. At the same time, 64% report food cost increases, 58% report labor cost increases, yet 55% managed to keep their menu prices about the same.
This matters because restaurants are not just businesses. They are cultural memory keepers & storytellers, and economic lifelines for workers, farmers, ranchers, fishermen, dishwashers, delivery drivers, and small producers. When restaurants struggle, entire local ecosystems feel it.
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Source:
https://www.dallasobserver.com/food-drink/texas-restaurant-association-warns-economic-slowdown-is-here-40609709/