Story perspectives

Rising Food Costs Squeeze Restaurant Margins Despite Price Drops

1/29/2026

Summary

Story summary

Hibist Legesse, owner of Bati Ethiopian Kitchen, says rising ingredient costs, especially onions and meat, squeeze margins.
Onion prices declined 27.2% from 2024 to 2025, yet fluctuations complicate budgeting.
The USDA reports food prices rose 3.1% in 2025, with wholesale prices 37% above pre-pandemic levels.
Hema Agwu of Brooklyn Suya cannot raise prices due to customer loss; the National Restaurant Association says margins require a 30%+ price increase.

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Story summary

Hibist Legesse, owner of Bati Ethiopian Kitchen, says rising ingredient costs, especially onions and meat, squeeze margins.
Onion prices declined 27.2% from 2024 to 2025, yet fluctuations complicate budgeting.
The USDA reports food prices rose 3.1% in 2025, with wholesale prices 37% above pre-pandemic levels.
Hema Agwu of Brooklyn Suya cannot raise prices due to customer loss; the National Restaurant Association says margins require a 30%+ price increase.