Rising costs slam low-cost eateries, hurting consumer pockets. Chains like Red Lobster and TGI Friday’s face bankruptcy as labor expenses surge and diners opt for home-cooked meals.

Analysts warn fast casual spots, favored by lower-income households, bear the brunt of price hikes. Monetary policy plays a pivotal role, balancing inflation and economic growth.

Bankruptcies ripple through smaller eateries due to commodity spikes. Despite slower supermarket price increases, families still find value in home cooking. High earners buoy some restaurants, but cautious spending prevails. Labor and food costs squeeze margins, forcing a shift in consumer habits.

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