NASHVILLE, Tenn. (RFD NEWS) — Higher food costs are showing up beyond the grocery aisle, with some major restaurant chains shrinking their U.S. footprint. A Delancey Street analysis found Pizza Hut lost 426 locations over the past year, followed by Subway at 402 and Wendy’s at 310.
The closures do not point to one cause, but inflation is part of the pressure. BLS says food away from home was 3.6 percent higher in April than a year earlier, while beef prices rose 2.7 percent for the month.
That matters for restaurants built around burgers, sandwiches, pizza, and diner traffic, where customers are more sensitive to menu prices. Beef-heavy chains may face added margin pressure as cattle supplies stay tight and wholesale beef prices remain elevated.
The trend is not uniform. Chipotle added 359 locations, while McDonald’s, Chick-fil-A, Dunkin’, Taco Bell, and Domino’s also grew.
In agriculture, restaurant traffic still matters because foodservice demand drives sales of beef, poultry, dairy, grains, oils, and specialty crops.
Farm-Level Takeaway: Inflation and high beef costs may pressure some restaurants, but stronger chains are still expanding and supporting foodservice demand.
Tony St. James, RFD News Markets Specialist
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