Anyone who has dined out lately has probably been shocked when they got their check. Inflation may be falling for goods, but labor-intensive service prices remain high, including dining out. It is putting pressure on the restaurant industry that is finally recovering from the pandemic. The figure below from OpenTable shows the change in seated dinners in 2023 compared to the same day in 2022. Since January foot traffic is down and staying low. It could be the end of pent-up dining demand and persistent inflation is keeping people out of restaurants. If it continues it could be an early sign of a slowing economy and the toll of inflation.

Source: OpenTable

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.