Major restaurant chains warn about disruption and higher pricing from reciprocal tariffs

Seeking Alpha News (Wed, 02-Apr 5:15 PM)

The National Restaurant Association warned about the impact of new reciprocal tariffs on the restaurant industry.

CEO Michelle Korsmo said applying new tariffs at the new scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open.

"The biggest concerns for restaurant operators—from community restaurants to national brands—are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers."

Korsmo also noted that restaurant operators rely on a stable supply of fresh ingredients year-round to provide the menu items their customers want and expect. "Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for U.S. farmers and ranchers to produce the volumes needed to support consumer demand," she added.

The National Restaurant Association said it will continue to share with the White House the real-life challenges these changes present for restaurant operators and ask to have food and beverages exempted from these tariffs.

McDonald's (NYSE:MCD), Yum! Brands (YUM), Darden Restaurants (DRI), Chipotle C(MG), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), and Brinker International (EAT) are just a few of the companies that are members of the industry association.