They say there’s no such thing as a free lunch, but nowhere have we seen inflation more than in the restaurant industry. A recent study comparing how menu prices have changed over the last five years revealed that IHOP’s menu prices have increased by a staggering 82%. That’s almost four times higher than the national inflation rate over the last five years. Despite IHOP once being considered an affordable dining option, the idea of making the mess associated with flipping pancakes at home seems more than worth it. So why did IHOP’s prices skyrocket? When you combine rising food costs with the increase in minimum wage, utilities, etc., prices at a restaurant chain like IHOP — whose average menu price five years ago was under $8 — have nowhere to go but up. Third party delivery apps have also had an impact on establishments like IHOP. With these apps charging significant fees — sometimes as much as 20% to 30% per order — restaurants have to adjust to this new cost by spreading it out across their menu. So that same hypothetical $8 dish is going to have to be upwards of $14 just to keep the restaurant open.
