Restaurant inventory decisions are being shaped by higher food costs, unstable supply, waste pressure, and changing customer preferences. Recent U.S. surveys show that food and non-alcohol beverage costs were a median 32.4% of sales for limited-service restaurants and 32.0% for full-service restaurants in 2024. Other research shows how operators responded when prices rose: by comparing suppliers, changing menus, tracking waste, negotiating, and investing in management technology.
Contents
- Restaurant inventory cost and food-cost ratios
- Inventory challenges and supply disruptions
- Purchasing and menu responses to rising food costs
- Segment differences in inventory controls
- Food waste and inventory-control outcomes
- Inventory technology and assortment planning
Restaurant inventory cost and food-cost ratios
Food costs are a central inventory metric because changes in purchasing prices affect menu margins before an operator changes staffing, portions, or prices. The National Restaurant Association reported that food and non-alcohol beverage costs were a median 32.4% of sales among limited-service respondents in 2024. The comparable median for full-service respondents was 32.0% (Restaurant operators kept food cost ratios in check in 2024). These are medians for the stated restaurant segments and year, not universal targets for every concept.
The same source reported that limited-service respondents averaged about 33% of sales in food and non-alcohol beverage costs across the National Restaurant Association’s 2010, 2013, and 2016 editions. That historical comparison should be read as a multi-edition average, not as a measurement for a single year (Restaurant operators kept food cost ratios in check in 2024).
TouchBistro’s The State of Restaurants in 2024 measured a sharper recent cost experience among surveyed full-service operators. In fieldwork conducted June 15–22, 2023, 60% said all or most of their suppliers had raised prices during the prior 12 months. In the prior-year comparison, 50% gave that answer. The report surveyed 600 U.S. full-service restaurant owners, presidents or CEOs, general managers, and area managers (The State of Restaurants in 2024).
Those operators reported that their average food expenditure increased 41% over the prior year. The distribution of reported food-cost increases was broad:
| Reported food-cost increase | Share of surveyed full-service operators |
|---|---|
| More than 80% | 18% |
| 51% to 80% | 1% |
| 21% to 50% | 46% |
| Below 20% | 34% |
The categories above describe the 2023 survey’s prior-year comparison and are not a forecast. They also describe surveyed full-service operators rather than the entire restaurant industry (The State of Restaurants in 2024).
Inventory challenges and supply disruptions
Operators identified several different inventory problems, which matters because price inflation, shortages, waste, and vendor performance require different controls. In TouchBistro’s 2023 survey, rising food costs and inflation were the biggest inventory challenge for 37% of surveyed full-service operators. Ingredient shortages and supply-chain disruptions were the biggest challenge for 24%, food waste for 22%, and vendor management for 14% (The State of Restaurants in 2024).
The National Restaurant Association reported that 96% of U.S. restaurant operators experienced delays or shortages of key food or beverage items during the second half of 2022. For 76%, those delays or shortages changed menu offerings. The measure describes operator-reported disruption during that period; it does not mean that every item was unavailable or that every menu changed permanently (STATE OF THE RESTAURANT INDUSTRY 2023).
Menu-change rates varied by restaurant type:
- Fine-dining operators reported the highest rate, at 85%.
- Casual-dining operators reported 83%.
- Family-dining operators reported 77%.
- Quick-service operators reported 64%.
This segment comparison shows that supply disruption can reach the menu, but the measured impact differed across concepts. The figures are for the second half of 2022 and should not be treated as current shortage rates.
Purchasing and menu responses to rising food costs
The National Restaurant Association’s STATE OF THE RESTAURANT INDUSTRY 2025 reported that 82% of restaurant operators said their average food costs were higher in 2024 than in 2023. Six percent said their average food costs declined. The response figures below apply only to operators whose food costs rose in 2024, so they are not percentages of all operators (STATE OF THE RESTAURANT INDUSTRY 2025).
The most common purchasing response was to shop around for other suppliers, reported by 52% of operators in the higher-cost group. Negotiating with existing suppliers was reported by 44%, while 16% purchased more items from local sources. These actions point to supplier comparison and negotiation as distinct responses: an operator could search for alternatives, seek better terms from a current vendor, or change sourcing geography.
Operators also changed the menu and other operating decisions. Among those with higher food costs, 46% removed items from their menus, 44% cut costs in other operating areas, 28% adjusted portion sizes, and 25% substituted lower-cost menu items. Food-waste tracking increased for 37% of this group. The survey does not establish that any one response caused a particular cost result.
Segment differences in inventory controls
Earlier National Restaurant Association research provides a segment-level view of responses among restaurant types reporting higher food costs than in 2019. In a 2022 survey covering recent months, shopping around for other suppliers was reported by 74% of casual-dining operators, 73% of fine-dining operators, and 72% of both family-dining and coffee-and-snack operators. The rate was 67% for fast-casual operators and 52% for quick-service operators (STATE OF THE RESTAURANT INDUSTRY 2023).
| Restaurant type | Shopped around for suppliers | Increased food-waste tracking |
|---|---|---|
| Family dining | 72% | 41% |
| Casual dining | 74% | Not supplied |
| Fine dining | 73% | 30% |
| Quick service | 52% | 47% |
| Fast casual | 67% | 46% |
| Coffee and snack | 72% | Not supplied |
The same research reported that 41% of family-dining operators, 30% of fine-dining operators, 47% of quick-service operators, and 46% of fast-casual operators increased food-waste tracking. The supplier and waste figures are separate responses within the group reporting higher food costs than in 2019. They should not be combined with the 2024 full-service and limited-service cost-response results, because the segment labels and survey conditions are different.
Food waste and inventory-control outcomes
Food waste is both an inventory issue and a cost issue. The National Restaurant Association’s 2024 food-waste resource states that U.S. food waste is estimated at 11.4 million tons each year, including waste relevant to restaurant operations. That is a broad U.S. estimate, not a restaurant-only tonnage measure. The same resource says restaurant food costs typically represent 28% to 35% of sales and estimates that for every $1 invested in food-waste reduction, restaurants could realize approximately $8 in cost savings (Working to reduce food waste).
The operating response remained visible in later survey results. PopMenu’s State of the Plate 2025 survey covered 300 U.S. restaurant owners and operators from August 12 to September 19, 2025. In that survey, 76% said they were minimizing food waste, 68% were exploring alternative suppliers, 40% were using cost-management or inventory software, and 38% were removing low-margin dishes (State of the Plate 2025). These are self-reported practices in that survey period, not audited adoption rates.
The 2025 National Restaurant Association report also separated waste tracking by service segment. Among operators whose food costs rose in 2024, 36% of full-service operators increased food-waste tracking, compared with 37% of limited-service operators (STATE OF THE RESTAURANT INDUSTRY 2025). The near-parity suggests that waste measurement was relevant across both segments in that specific comparison, while the survey’s restriction to operators with rising costs remains important.
Inventory technology and assortment planning
Technology spending is one way operators try to make purchasing, usage, and waste more visible. In 2024, managing food and supplies was a technology-spending priority for 52% of restaurant operators, according to the National Restaurant Association’s 2025 report (STATE OF THE RESTAURANT INDUSTRY 2025). PopMenu’s 2025 survey separately found that 40% of respondents were using cost-management or inventory software. The measures are from different surveys and should not be treated as a single market-adoption estimate.
Assortment planning also affects inventory complexity. In TouchBistro’s 2023 survey of full-service operators, respondents were asked what menu additions they planned within the next six months. The planned additions included more locally sourced ingredients for 42%, more plant-based or vegan options for 38%, more gluten-free options for 38%, more non-alcoholic drink options for 31%, more paleo options for 30%, and more keto options for 27%. Nine percent planned none of the listed additions (The State of Restaurants in 2024).
These plans are intentions measured in 2023, not completed menu changes or forecasts of future demand. They nevertheless show why inventory planning cannot focus only on price: a broader assortment can involve more ingredients, while a shift toward local, plant-based, gluten-free, non-alcoholic, paleo, or keto options changes what operators need to source and track.