Restaurants squeezed; chains push value
Running a restaurant is getting harder—about half of Texas restaurant operators failed to post a profit last year as food, labor and fees climbed—and chains are responding by pushing low‑price, high‑volume deals. (Local reporting says half of Texas restaurants lost money in the last year, while Wawa has revived its $6 Meal Deal and added teriyaki sauce plus banana‑bread‑flavored coffee.) ( ).
A lot of restaurants are now stuck in a squeeze where a burger, a paycheck, and a card swipe all cost more than they did a few years ago, but customers still flinch at higher menu prices. In Texas, KERA reported that half of restaurant operators failed to earn a profit last year. (keranews.org) The cost jump is not one thing. Emily Williams Knight of the Texas Restaurant Association told KERA that food costs alone are up 35 percent since the pandemic, while labor, insurance, and credit card processing costs have climbed too. (keranews.org) That leaves owners trying to solve a math problem with very little room for error. The National Restaurant Association’s 2025 industry report says food costs, labor costs, and recruiting and retaining employees are among the top challenges operators expect to face. (restaurant.org) Texas is a huge restaurant market, so even small margin changes hit a lot of businesses. The Texas Restaurant Association says the state’s restaurant industry includes more than 57,000 locations and more than 1.4 million workers. (txrestaurant.org) One pressure point customers rarely see is the fee attached to a card payment. The Texas Restaurant Association backed 2025 legislation saying hidden credit card swipe fees cost Texans more than $10 billion a year. (txrestaurant.org) Restaurants can try to raise prices, but chains have another option: sell cheaper meals to more people and make it up on volume. That is why value deals are back even as operators keep talking about inflation. (restaurant.org) Wawa is a clear example. CSP Daily News reported that the convenience-store chain brought back its $6 Meal Deal after a separate $5 chicken sandwich promotion ended on March 22, and the revived deal began March 23. (cspdailynews.com) The offer is built to feel bigger than the price tag. Wawa’s order page shows the $6 bundle includes an entrée, a snack, and a drink, with teriyaki sauce available for an extra charge. (wawa.com) Wawa is also adding novelty around the edges instead of cutting the headline price. CSP reported that the chain paired the value push with seasonal items including banana-bread-flavored coffee. (cspdailynews.com) That is the split opening up across the industry in 2026. Independent restaurants are warning that basic operating costs keep rising faster than they can comfortably charge, while larger chains are leaning harder on low-price bundles to keep traffic moving through the door. (keranews.org)
