Texas Roadhouse has raised menu prices amid inflation, raising questions about whether other restaurants will follow suit.
Menu prices have begun to rise modestly, according to a May 12 report from the National Restaurant Association. Restaurants raised prices by 0.2% in April for the second consecutive month, according to the report. Compared with a year earlier, menu prices have risen 3.6% through April 2025 – the organization says this is the slowest pace in 15 months.
“Overall, restaurant price inflation remains relatively mild and well below the peak of 8.8% reached in March 2023, the fastest increase in more than two decades,” the National Restaurant Association says.
Texas Roadhouse Inflation Effect
Texas Roadhouse announced that its menu prices were increased by 1.9% in its first quarter 2026 results released on May 7, despite sales growth.
According to the earnings report, while the chain’s restaurant margins declined due to commodity and labor inflation, some of that decline was offset by those higher sales.
Menu Enhancement: Limited-Service vs. Full-Service Restaurants
The report distinguished between the menus of limited-service establishments (where customers typically order and pay for their food before it is prepared and served) and full-service restaurants (where customers are seated and waited on by staff).
Menu prices at limited-service establishments rose 0.4% in April, up from 0.2% in March and the most since December. Meanwhile, full-service menu prices rose 0.1% in April.
What is the reason for the increase in menu prices?
According to the National Restaurant Association, consumer prices rose 0.6% in April, building on a 0.9% increase seen in March. These gains were primarily due to higher gasoline prices, which were up 21.2% in March and 5.4% in April.
What is the inflation rate today?
The Bureau of Labor Statistics’ consumer price index, a measure of inflation, shows that prices rose 0.6% from March to April and were 3.8% higher than a year earlier, USA Today reports.
Reporting by Natasia Paloma, USA TODAY Network/USA TODAY