A new Q3 economics report from the Texas Restaurant Association (TRA) shows the restaurant industry, the state’s largest private-sector employer, is under mounting pressure heading into the critical holiday season. According to the report, 88% of Texas restaurants reported higher food costs, while 66% reported higher labor costs. At the same time, 52% of restaurants saw customer traffic decline.
The report also highlights the impact of tariffs and immigration enforcement, which further challenge restaurant operators.
“Texas restaurants have spent months bracing for an economic slowdown, and last quarter’s data confirms what many operators are feeling on the ground,” Texas Restaurant Association President and CEO Emily Williams Knight said. “Rising food and labor costs are squeezing margins while consumer spending softens, especially among younger and middle-income diners.”…