Houston Restaurant Adds 3.5% Surcharge to Offset 30% Input Cost Hikes

Lankford's in Houston added a 3.5% surcharge to credit card transactions. The fee offsets a reported 20% to 30% increase in the cost of beef, bacon, and produce. Menu prices have remained unchanged for three years.

Owner Paul Prior stated that input costs have risen continuously across all categories. The restaurant has expanded from one to three locations during this period. The surcharge allows the business to maintain its farm-to-table sourcing model.

Input costs rise thirty percent

Prior identified hamburger meat, bacon, lettuce, and tomatoes as primary cost drivers. These items have seen price growth at the high end of the reported range. The restaurant absorbs these increases through operational adjustments rather than direct price hikes.

The business has reduced staff hours on certain shifts. Management also trimmed waste at all three locations. These measures help preserve margins while keeping customer-facing prices stable.

August inflation data at 3.4%

The US Bureau of Labor Statistics reported a 3.4% year-over-year rise in prices for August. This figure aligns with the pressure felt by small businesses. GN markets/inflation (en-US) notes that elevated inflation continues to strain household and business budgets.

Prior said the surcharge has helped greatly in managing these external pressures. The strategy allows the restaurant to double down on quality ingredients. He remains optimistic about navigating the current economic climate.

Customer prices remain static

The owner emphasized a commitment to not burdening customers with higher menu prices. The base prices have not changed since the current location opened. The 3.5% fee applies only to credit card purchases.

This approach mirrors trends in other sectors adopting similar fee structures. It allows businesses to pass on processing costs and input hikes selectively. The restaurant continues to operate with a focus on long-term stability.