Arkansas restaurants adapt as rising food costs change menus and dining habits

Little Rock, Ark. (KATV) — Rising transportation, labor and food costs continue to reshape Arkansas’ restaurant industry, forcing owners to adjust menus while customers rethink how they dine out.

Food prices have increased, placing additional pressure on restaurants.

Restaurant owners say the cost of staple ingredients such as produce; dairy and meat remain one of their biggest challenges.

“When they had a freeze, our tomatoes went from $34 a case to $104 a case,” said Cole Treece of Buffalo Grill. “So little things like that, you mix in amongst the inflation already and it really puts a burden on the restaurant owner.”

At Allsopp & Chapple, owner Dillon Garcia is opening a new restaurant and said he is keeping menu items and maintaining premium ingredients.

“People aren’t ordering as many desserts, as many appetizers or as many drinks,” Garcia said.

“We’re still going to focus on really high-quality, premium ingredients. It’s just going to be at a lower price point. We’re going to focus on burgers and sandwiches versus filets and halibut.”

Alicia Payseno with the Arkansas Restaurant Association said families are scaling back what they order when dining out.

“A family that would come in and typically order an appetizer, four entrees and a dessert are really splitting meals,” Payseno said. “They’re having to be very selective in what they decide to purchase that day.”

Garcia said customers have become noticeably more price-conscious than in previous years.

“We’re definitely seeing people more concerned about prices than we’ve typically seen,” he said. “For the first time, people are actually asking, ‘Is tax included in the liquor?’”

While many restaurants have increased menu prices to offset higher operating costs, others have delayed passing those expenses to customers.

“We haven’t passed those costs yet,” Treece said. “It will get to a point where we have to pass them on to the customer because we just can’t eat it forever.”

For longtime restaurants such as Buffalo Grill, Treece said loyal customers have helped keep the business afloat despite ongoing inflation.

“We’ve been very fortunate that we have a longtime core group of customers in this area,” Treece said.

“They don’t mind paying because they know what they’re getting.”

As costs remain elevated, restaurant owners say they will continue looking for ways to balance affordability for customers while maintaining the quality that keeps diners coming back.