It's giving "we have food at home" vibes
Prices at This Beloved Chain Restaurant Spiked 82% Since 2020—See How Your Favorite Eatery Ranks
Published on Apr. 09, 2025
They say there’s no such thing as a free lunch, and in 2025, finding cheap groceries is hard to come by too. And remember, tariffs on foreign goods have just set in, so your go-to purchases are likely to get more expensive. If you add up the yearly inflation rates between 2020 and 2025, we’ve seen a roughly 23% increase within the past five years. But perhaps nowhere have we seen heightened prices like the restaurant industry.
FinanceBuzz recently conducted a study comparing how menu prices have changed over the last five years at 16 fast-casual restaurant chains. The results for one popular eatery? Jaw-dropping. Read on to find out which chain restaurant it is and how other popular chains ranked.
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How did the study determine the percentage increases?
To determine the percentage increases, FinanceBuzz looked at how much 10 menu items cost at each of the 16 eateries in the year 2020. Then, they gathered the prices for those same 10 menu items at each establishment in 2025. Finally, they used these figures to calculate the percentage increases, averaging them together to identify how hard each restaurant’s menu has been hit with increased prices.
Which chain’s restaurant went up 82% in the past five years?
Despite once being considered an affordable dining option for families, IHOP’s menu prices increased by a staggering 82%, according to FinanceBuzz’s calculations. That’s almost four times higher than the national inflation rate over the last five years. It’s enough to make the mess of flipping pancakes at home seem more than worth it.
Why did IHOP’s prices skyrocket?
IHOP isn’t alone in combatting inflation with higher menu prices, but the restaurant with the next biggest price hike on the list is Texas Roadhouse at a 46% increase, which seems paltry compared to IHOP’s 82%.
“When you combine rising food costs with the rise of the minimum wage, utilities and so on, prices at a restaurant chain like IHOP, whose average menu price five years ago was under $8, have nowhere to go but up,” says Maricel Gentile, executive chef and owner of Maricel’s Kitchen in East Brunswick, New Jersey.
Gentile also points to the impact third-party delivery apps have had on establishments like IHOP. With these apps charging significant fees (sometimes 20% to 30% per order), restaurants have to adjust to this new cost by spreading it out across their menu. It also means there’s less foot traffic going into restaurants, which translates into less opportunity for engagement with customers—something that normally leads to higher sales volume.
“IHOP’s business model was based on volume and upsell,” Gentile says. “That smiling waitress or waiter did a lot to sell you more than the $8. And they did it well. IHOP’s menu is [also] centered on eggs and dairy—both of which have spiked several times in the past few years. So that same hypothetical $8 dish is going to have to be upwards of $14 just to keep the restaurant open.” Orange juice prices have been on the rise too.
What other restaurants saw large increases?
It isn’t only IHOP’s menu prices that have seen big hikes. Many of your other favorites are also dealing with the inflationary impact of food costs, the higher cost of labor and the expansion of third-party delivery apps. Here are the 10 restaurants with the highest percentage increases according to FinanceBuzz’s survey:
- IHOP: 82%
- Texas Roadhouse: 46%
- T.G.I. Friday’s: 45%
- Applebee’s: 41%
- Cheesecake Factory: 40%
- Hooters: 40%
- Chili’s: 39%
- Denny’s: 36%
- Cracker Barrel: 35%
- Red Lobster: 34%
How can you save money when eating out?
While prices everywhere are going to be higher than they were five years ago, there are still ways to shave some money off your bill when eating out.
Look for the specials. Even IHOP still has deals you can take advantage of if you order off of their “House Faves” menu, available from 7 a.m. to 10 p.m. daily. There are four items on this menu (a ham and cheese omelet, house scramble, french toast breakfast, and a breakfast faves combo with pancakes) priced at $6 (or $7 in certain areas).
Buy discounted restaurant gift cards. Create your own savings by purchasing discounted restaurant gift cards on sites like CardCash.com, GiftCardGranny.com or GCX. These are places where people sell unwanted gift cards for a fraction of what they’re worth. For example, they have $25 IHOP gift cards for just $20.76—that’s 17% off.
Join loyalty programs. Nearly every national chain restaurant has a rewards program these days, and they typically give you a freebie or savings coupon just for signing up. Then there are more freebies for your birthday and “just because.” Chili’s will give you free chips and salsa, or a non-alcoholic beverage of your choice, for signing up. Then they’ll throw surprises your way every now and again, like free kids meals and appetizers.
Eat during happy hour. Happy hour specials still exist, and they’re a great time to get half-priced food at your favorite restaurants. Are you eating a little earlier than you might like? Possibly, but saving money makes those eats even more delicious.
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Sources:
- FinanceBuzz.com: “Which Fast-Casual Prices Have Risen the Least in the Past Five Years [Data Study]”
- U.S. Inflation Calculator: “Current U.S. Inflation Rates: 2000 – 2025”
- Maricel Gentile, executive chef and owner of Maricel’s Kitchen in East Brunswick, New Jersey; email interview, April 2025
