‘Persistent Cost Pressures’
The James Beard Foundation just issued its annual report on “The State of Independent Restaurants.” Axios reported on it here. The picture is sobering and the report itself notes:
- “Independent restaurants … are working within a recalibrated reality shaped by persistent cost pressures”
- “Chefs and operators widely cited consumer affordability pressures as one of the most defining concerns shaping the restaurant landscape.”
- “In the past year, over a third of consumers are eating out less and discretionary spending intentions remain below 2021 levels.”
- “Wholesale food prices remain elevated from pre-pandemic levels, and key ingredients such as beef and veal products reached historically high levels in 2025.”
- 39% of respondents “reported lower expected profits than the year prior.”
- As Axios noted, “Operators say diners are pushing back — skipping second drinks, sharing desserts and trimming add-ons to manage the final check.”
Of course, the credit card industry inflates restaurants' costs by charging a swipe fee based on a percentage of the amount customers spend.
- Not only do swipe fees automatically increase with every penny of inflation, average swipe fees jumped from 2.26% to 2.35% just from 2023 to 2024.
- In fact, since 2020, total swipe fees have increased by 70%.
- Those fees now total $187 billion – about $1,200 a year in higher costs for the average American family
With all those huge fees being taken from independent restaurants and other merchants, maybe we shouldn’t be surprised that JP Morgan Chase’s CEO reportedly made $770 million last year.
- (Do you think he “skips second drinks” or “shares dessert” like other Americans to keep his restaurant bills down?)
Independent restaurants are hurting — and other Main Street businesses and their customers are, too (well, maybe not certain customers). Main Street and everyday Americans need some relief.
COMPETITION IS BETTER FOR EVERYONE
IT'S TIME TO PASS THE CREDIT CARD COMPETITION ACT