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Restaurants’ Post-Covid Boom Is Winding Down
- Higher prices and economic uncertainty are weighing on diners
- The rising cost of eating out is crimping customer traffic
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After celebrating the end of Covid restrictions with an epic restaurant tab, diners are now hitting the brakes on eating out.
Many US households, especially lower- and middle-income ones, are cutting back on restaurant spending as inflation pressures their budgets. Feeling the same pinch, restaurants from Chipotle Mexican Grill Inc. to Cracker Barrel Old Country Store Inc. have increased prices to keep up. This will likely translate into lower traffic and stagnating sales in coming months.