The overall news about inflation seems positive but how that’s impacting the market remains mixed. The U.S. Bureau of Labor Statistics reports inflation was 2.5% for the 12-month period ending in August 2024, which is the lowest growth rate since February 2021. And the Federal Reserve cut interest rates for the first time since 2020 on September 18. Still, readers of restaurant development + design continue to feel a pinch, per a pulse survey fielded in August. Among respondents, 37% surveyed said construction costs and materials are “substantially higher” than they were in 2023.
More readers — 50% — said construction and materials costs are “somewhat higher” than in 2023. For 9% costs “are about the same” as last year. And for a lucky 1%, construction and materials costs are lower. Finally, just 3% said they were not building in 2024.
rd+d periodically surveys subscribers on the state of restaurant development and design. This survey was fielded in August 2024. Subscribe to The Pulse to get rd+d’s surveys and results delivered to your inbox six times a year.