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How food cost hikes are affecting Syracuse restaurants

How food cost hikes are affecting area restaurants

Local businesses are making adjustments as federal data shows that food costs are climbing faster than overall inflation.

Soulutions restaurant in downtown Syracuse’s Salt City Market posted a flier on June 1 announcing price increases on all meal combos, sandwich combos, and sides.
Soulutions restaurant in downtown Syracuse’s Salt City Market increased the prices on all meal combos, sandwich combos, and sides this summer.

On June 1, Soulutions Sley’s Southern Cuisine posted a flier in a display case announcing price increases of 50 cents to $1 on all meal and sandwich combos and sides. 

Owner Sleyrow Mason said he has seen food prices rise since last year, but a recent spike in costs for key menu items like ribs, chicken wings and breast forced him to make adjustments at his barbecue eatery in the Salt City Market. He said he also cut back on staff hours and began working more shifts himself to reduce labor costs. 

“On a regular day, I might run with four people in the daytime or four people at night time,” Mason said. “I run with three people instead and include myself as a full person.”

Federal data shows that food costs are climbing faster than overall inflation. The U.S. Department of Agriculture reported in June 2025 that food prices increased by 2.9% from May 2024 to May 2025, outpacing the 2.4% rise in the overall Consumer Price Index (CPI).

The report stated that prices for food away from home, including restaurants and food services, increased by 3.8% over the past year, compared to a 2.2% rise for groceries. The USDA expects this trend to continue, forecasting restaurant prices to rise by 3.9% this year.

In addition to rising prices, Mason is navigating seasonal changes that affect his business. He said his business tends to slow down between May and September, as many of his regular customers go on vacation. He said he noticed that people are more cautious with how they spend recently, since groceries have become more expensive. To keep his business accessible, he tries to offer more economic options. 

“We do specials, something that’s more affordable for people,” he said. “I have pretty loyal customers, so they understood the price.”

Soulutions isn’t the only local food business dealing with rising costs. At Milano Bean Cafe, a coffee shop in downtown Syracuse, increasing prices affect essential ingredients like dairy and eggs. 

“We’re a cafe, so we obviously need milk all the time,” Sam Saleh, a barista for the cafe, said. “Everything we have in the fridge it’s made with milk or eggs.” 

Restaurant owners aren’t the only ones adjusting. As prices rise, some customers are changing their buying habits. 

Tim Mahar, an Uber driver in Syracuse, said that eating out every day used to be more cost-effective than buying groceries as a single person. But rising prices forced him to cut back on dining out to about once a week. 

“When you see things going from $10, $12 a plate to $17, $20, $24 a plate, it’s not justifiable,” Mahar said. “Somebody that is a multi-millionaire paying $20 for a steak versus $30 is not going to affect them, but for most people, that extra $10 is important.”

As food prices continue to increase and customer habits shift, Mason created a standard portion size for all combos at Soulutions. He said the change means the staff doesn’t serve more or less, helping him ration the food and use fewer ingredients – all part of doing business these days.

“You just have to deal with it. What can you do?”