The Fox News Rundown Extra: Inflation, Delivery Apps, And The State Of The Restaurant Industry
Mar 1, 2026
Dr. Chad Moutray, Chief Economist at the National Restaurant Association, offers a concise look at dining trends and the industry's economic outlook. He covers how inflation and rising costs squeeze margins. He explains the rise of delivery apps and off‑premise sales. He also discusses labor dynamics, tech adoption, and which strategies help restaurants succeed.
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Restaurant Profit Margins Are Thin
- Profit margins have narrowed sharply since 2019 as food and labor costs rose roughly 35–38%.
- Full-service margins fell to about 2.8% (from 4%) and limited-service to about 4% (from 6%) in 2024, squeezing operators.
Refocus On High Performing Locations
- Close underperforming locations and double down on units that deliver good value to consumers.
- Operators should refocus resources on restaurants that perform well and emphasize perceived value to recover traffic.
Off-Premise Sales Add New Revenue
- Off-premise sales (takeout, delivery, drive-through) are net new revenue rather than pure cannibalization.
- Younger generations treat off-premise as essential, prompting investment across full-service and quick-serve segments.