34% of NYC Operators Cite Higher Food Costs as Their #1 Concern

Perhaps one of the biggest NYC restaurant trends of the past year has been a promising increase in guest traffic. 23% of full service restaurant (FSR) operators in New York City reported a significant increase in traffic from the year prior, while 66% reported a slight increase.

Unfortunately, some of those gains have been offset by rising expenses in the back of house. As our NYC restaurant report uncovered, 34% of the city’s operators reported that inventory costs were their number one source of financial strain, which is a bigger proportion of operators than in any other city. Additionally, nearly a quarter (23%) said food costs were the biggest obstacle preventing them from expanding their business, suggesting that even with a rise in guest traffic, higher food costs continue to eat into profits.

75% of NYC Restaurants Report Raising Menu Prices

Unlike their peers nationwide, who have started to temper their menu price increases, our NYC restaurant report found that a whopping 75% of the city’s operators said they had raised their prices in the past six months.

While higher menu prices can help offset higher costs, there are some risks involved, and many New York City operators appear to be feeling those negative effects. In response to higher prices, 43% of operators in New York City reported customers spending less overall and 38% said they’ve observed customers tipping less than in the past. More concerningly, 33% of operators said they’d received negative reviews following price hikes – a higher proportion than in any other U.S. city.

More Than Half of NYC Restaurateurs Now Use TikTok

On the marketing front, perhaps one of the biggest New York City restaurant trends is the rise of TikTok. As operators in New York City (and their peers nationwide) have observed, TikTok is an increasingly powerful tool when it comes to organic reach and diner discoverability. In fact, more than half (58%) of New York City operators now report using TikTok to promote their business, which is close to double the amount who said the same in 2023 (31%) and more than the number currently using Instagram for the same purpose (40%).