Food Costs

Average wholesale food prices registered a moderate gain in November, according to preliminary data from the Bureau of Labor Statistics. 

The Producer Price Index for All Foods – which represents the change in average prices paid to domestic producers for their output – increased 0.5% between October and November.

The food price index was uneven recently, alternating between gains and declines during the last 5 months. However, the trendline remains generally higher, with wholesale food prices rising in 5 of the last 7 months.

After November’s increase, the food price index stood 1.3% above year-ago levels. That was down from the strong 9.7% increase during the 12 months ending in February, but it represented the continuation of a prolonged period of rising food costs. 

That continues to pressure on the bottom line of restaurants, as operators remain challenged by elevated costs in other areas.

Wholesale food prices continue to rise well above their pre-pandemic levels. As of November 2025, the Producer Price Index for All Foods stood 37% above its February 2020 reading.   

The overall food price index rose during 2025, but trends were mixed on the individual commodity level.

Producer prices for unprocessed finfish (31.6%), coffee (25.6%), beef and veal (15.1%), fresh vegetables (9.1%), pork (6.4%) and unprocessed shellfish (3.0%) stood well above their November 2024 levels. 

At the same time, there was a degree of pricing relief for some commodities in recent months. The price indices for eggs (-45.0%), butter (-40.1%), milled rice (-9.2%), fresh fruit (-7.6%), milk (-7.5%), refined sugar (-7.3%), cheese (-3.9%), confectionary materials (-3.0%), wheat flour (-2.8%) and processed poultry (-2.0%) were down from year-ago levels.

While food costs remain a headwind overall, the degree to which restaurants are experiencing any pricing relief depends on the menu mix of each individual operation.