Workers Facing ‘Lunchflation’ As They Return to Their Offices

Square on Wednesday (March 23) released data that shows workers who are returning to their offices after two years at home because of the COVID-19 pandemic will be faced with what’s being called “lunch-flation,” as their midday meals will cost more than when they last visited their favorite joints.

Lunch item costs are rising faster than the average cost across all other items because restaurants are dealing with rising costs related to labor, ingredients and more, according to the Square data as of March 1.

The average price of wraps is up 18% year-over-year, for example, while sandwiches have seen an increased cost of 14%. Tacos will cost consumers an extra 12%, while salads cost 11% more than they did two years ago. Consumers will be charged 8% more for burgers and 5% more for their favorite soup. The average cost across all items has jumped 7% year-over-year, the Square data shows.

Many restaurants have added online ordering, self-serve ordering through QR codes and local and flat-rate delivery through third-party partners to cut back on some of the increases to the costs associated with their businesses.

“Restaurants have been among the hardest-hit businesses over the past few years, and now they’re facing rising costs across all parts of their business due to labor shortages and supply chain constraints,” said Bryan Solar, head of restaurants at Square, in the company press release.

“While technology offers many solutions, business from and relationships with the customer continue to be key to restaurants’ survival. In addition to being upfront and honest about why prices have changed, restaurants can lean on inventory management software to combat supply chain woes,” he said.

Related: Square Launches Loyalty, Marketing Products in Ireland

Earlier this month, Square launched a pair of software products that will help businesses in Ireland increase their sales and build customer loyalty. Square Marketing and Square Loyalty are now available as separate subscriptions for Irish businesses.