San Diego, CA
The death of the affordable restaurant meal in San Diego County
At a glance
The cost of eating out at a restaurant in San Diego County has jumped significantly in the last five years. The restaurant industry says that it’s had to raise menu prices to offset higher labor and food costs. With the spike in price, some San Diegans say they’re staying away from restaurants while others are hunting to find cheap places to enjoy food away from home.
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Grabbing a bite to eat with family or friends is not only a great way to socialize, it can be a good way to experience a community and support local restaurants.
But dining out can start to feel more like a luxury when the cost drains your budget. Inflation has forced restaurants to significantly raise prices in San Diego County and nationwide over the past few years. The increase has been particularly acute since the COVID-19 pandemic.
In this Price of San Diego story, we dig into what’s causing the spike in dining costs at restaurants, and how locals are adapting.
Sticker shock
San Diego ended 2025 with the second highest overall inflation in the US among major metros. Specifically the “prices of food away from home” index rose 2.9% from November 2024. The “prices of food away from home” data includes restaurant, cafeteria, and vending purchases.
While the 2025 increase may not sound like a lot, it adds to a trend over the past five years of significant cost increases at restaurants in the region. In 2024, the cost of going to a restaurant skyrocketed 11.7%. In 2023, it rose 4%. The last year the cost of dining out in San Diego decreased was 2022.
There was a spike of over over 10% in 2021. And in 2020, prices of food away from home went up over 4%.
The breakdown
All of those data points show that eating at restaurants in the county has gotten a lot more expensive in the past five years. If you tally those numbers it gets you to over a 30% price increase during that time for the San Diego region. For example, if a single cheeseburger cost you $10 in 2020, that same single cheeseburger now costs you about $13.00 — like this one now costs at Hodad’s.
So why is this happening? Food and labor costs for the average restaurant have gone up 35% in the last five years, according to the National Restaurant Association.
Locally, the rise in retail rent over that same time has added to tighter margins.
The National Restaurant Association says the only way most restaurant operators can cover their higher costs is to increase menu prices.
By the numbers
Money isn’t going as far as it used to, faster compared to the past couple decades.
Nationwide, the U.S. Bureau of Labor Statistics inflation calculator shows $100,000 in November, 2025, has the same buying power as about $80,000 in 2020 — a nearly $20,000 loss in just five years. It took 13 years, going all the way back to 2007, to make that same $20,000 change in purchasing power before 2020.
How are locals adapting?
While it’s expensive to dine out and some San Diegans say they’re going to restaurants less overall, other locals have been discussing the best restaurant meals for the price on Reddit.
Restaurants and food items that got frequent mentions include: IKEA Restaurant, the fish tacos at El Pueblo Mexican Food (they’re no longer $1 — they’re now $1.39), Costco Food Court (this now requires Costco membership), In-N-Out, Chicago Fire Grill and Sprouts Farmers Market sandwiches.
What to watch
The USDA expects food away from home prices to increase roughly 3.3% in 2026 nationwide.
The National Restaurant Association says declining tourism spending is making business conditions more challenging for restaurants. They also say higher-income households are driving restaurant sales.
San Diego’s cost of living is roughly 50% higher than the national average. While the median household income is around $104,321, the income needed to afford a median-priced home ($920k+) is now estimated at over $260,000.