CHICAGO, June 10, 2026 —New BLS figures show FAFH prices are now running 3.5% above where they were a year ago.
Menu price inflation accelerated in May, pushing food-away-from-home prices 3.5% on average above where they were a year ago, according to the latest federal measure.
The upward pressure also widened the gap between menu inflation and the price jumps consumers are seeing in their local supermarkets, the new Bureau of Labor Statistics (BLS) figures show. Grocery prices rose by 0.1%, compared with the 0.3% rise clocked for restaurants and other FAFH outlets.
The blended 3.1% increase in food prices was a key factor in accelerating the overall rate of inflation by 0.5%, a big jump by statistical standards, to 4.2%.
The sharp upswing in menu prices is bad news for the FAFH business, which has been struggling with a drop in consumer traffic. Most experts tie the decline to price sensitivity and the erosion of FAFH's everyday affordability.
The BLS figures suggest that many FAFH businesses are likely to feel additional pressure on their top and bottom lines from a sharp spike in energy costs.
Gasoline prices jumped 40.5%. Traditionally, restaurant traffic drops off with a sharp increase in the cost of tanking up the family car.
Fuel oil, or what’s used to heat and provide electricity to restaurants, leapt 58.9% in May, the highest increase by far in 2026. Electricity rates were already 5.9% above where they were in May of last year.
The jump in the Consumer Price Index and its subordinate components is near-universally attributed to the ongoing war with Iran and its effect on global oil markets. The conflict has limited shipments out of the Middle East, lighting a rocket under the price of even domestically sourced oil and gas.
On the day before the new BLS data were released, President Donald Trump told the media that he expects a settlement of the war within a matter of days. The conflict is currently in its 102nd day.