Restaurants Face ‘Double Squeeze’ from Rising Wages and Tariffs

Despite being pinched by a “double squeeze” from internal labor costs and external market pressures forcing them to raise menu prices, 71 percent of restaurant operators have a positive outlook for the next year, according to Expert Market’s 2025 Food and Beverage Report, sponsored by Toast.“This does seem like an unusual finding, in the light of the many economic headwinds our report highlighted – tariffs, inflation and labor costs are among many big issues the industry is having to deal with right now,” said Chris Maillard, Editor of Expert Market. “But those are things that operators can’t influence, so they’re concentrating on running their own businesses as sustainably as possible. The adrenaline rush of hustling, working hard and keeping customers coming in is keeping operators enthusiastic – and they think they can get through this in good shape. We very much hope that optimism is justified.”

Among the key findings: 

76 percent report that rising…