Breaking News

Shallow Labor Pool Could Push Restaurant Summer Wages Higher

• Restaurants entered the summer hiring season with roughly 300,000 fewer young workers available than in 2025, tightening the seasonal labor market.
• A smaller seasonal workforce could increase wage competition, staffing shortages, and scheduling challenges in high-demand markets. SOURCE | RESTAURANT DIVE

Egg Prices Fall as Vegetable and Wheat Costs Rise

• USDA forecasts egg prices will decline sharply in 2026, while fresh vegetables, wheat, and confectionery ingredients are expected to remain more expensive.
• Commodity-specific inflation reinforces the need for targeted purchasing and menu planning rather than relying on broad food inflation trends. SOURCE | USDA ECONOMIC RESEARCH SERVICE

California Allergen Disclosure Rules Took Effect July 1

• California’s SB 68 is now in effect, requiring qualifying restaurant chains to disclose the Top 9 major allergens for standard menu items on physical and digital menus.
• Covered restaurant chains must ensure both physical and digital menus comply with the new disclosure requirements. SOURCE | FOX BUSINESS

Pricing

Wholesale Food Costs Rise as Commodity Prices Diverge

• Wholesale food prices increased for the third time in four months, with costs continuing to vary widely across commodities. Prices for fresh vegetables, beef, coffee, and dairy rose, while eggs, butter, pork, and sugar declined, reinforcing the need for commodity-specific purchasing and menu planning. SOURCE | NATIONAL RESTAURANT ASSOCIATION

Restaurants Have Less Room to Raise Menu Prices

• Menu prices increased 0.3% in May at both full-service and limited-service restaurants, while the gap between restaurant and grocery inflation continued to narrow.
• Narrowing price differences with grocery stores may leave restaurants with less flexibility to raise menu prices without affecting customer demand. SOURCE | NATIONAL RESTAURANT ASSOCIATION

Industry

Consumers Continue to Prioritize Restaurant Spending

• Despite ongoing economic pressures, consumers continue to allocate a meaningful share of their spending to restaurants, although value and affordability remain important factors in dining decisions.
• The trend suggests restaurant demand has remained resilient, but operators may need to balance pricing strategies with value to sustain traffic. SOURCE | RESTAURANT BUSINESS

Restaurants Cut Nearly 33,000 Jobs in June

• Food services and drinking places shed nearly 33,000 jobs in June, erasing much of the hiring gains made before the summer season.
• The slowdown points to softer customer traffic, higher labor costs, and increased use of technology, suggesting many operators are becoming more cautious about staffing. SOURCE | NATION’S RESTAURANT NEWS

Regulatory

California Privacy Bill Could Reshape Restaurant Loyalty Programs

• California’s AB 2564, a proposed bill targeting dynamic pricing, could affect how restaurants personalize loyalty offers and use customer data.
• Multi-unit operators should monitor the legislation, as compliance requirements could influence loyalty programs and technology platforms across multiple locations. SOURCE | RESTAURANT BUSINESS

California Standardizes Food Date Labels to Reduce Waste

• California’s new law standardizes food date labels by using terms such as “Best if Used By” and “Use By” to reduce consumer confusion and food waste.
• As manufacturers adopt the new labeling standards, restaurants may need to adjust inventory practices and staff familiarity with updated product labeling. SOURCE | AP NEWS

California Cities Raise Local Minimum Wages July 1

• More than a dozen California cities and counties increased their local minimum wages effective July 1, 2026, with several rates exceeding $19 or $20 per hour.
• The higher wage rates will require affected operators to review payroll, scheduling, and labor budgets across impacted locations. SOURCE | CALIFORNIA EMPLOYERS ASSOCIATION