Houston-area restaurant adds 3.5% card surcharge as rising costs squeeze business

BELLAIRE, Texas - Rising food prices and operating expenses continue to squeeze restaurants, forcing some businesses to find new ways to offset costs without passing all of those increases directly onto their menu prices.

Houston restaurant adding card surcharge as costs rise

The backstory:

At Lankford’s, a family-owned Houston restaurant with a history spanning roughly 90 years, owner Paul Prior says the business continues to feel the effects of higher prices.

Prior believes restaurants are still dealing with some of the impacts that began with supply chain problems during the COVID-19 pandemic. He says prices skyrocketed during that period and many costs have yet to come back down.

The increases extend beyond the food itself.

Prior says beef has become particularly expensive. The restaurant is also paying more for everyday supplies, including sauce containers, plastic bags and other to-go materials.

Lankford’s sources its meat and produce locally, according to Prior, and the business continues to work with its suppliers to find different options while maintaining the quality of its products.

The restaurant has also expanded, which Prior says provides some advantages when purchasing larger quantities from suppliers. At the same time, employees are working to reduce waste and save money wherever possible.

3.5% card surcharge

At Lankford’s Bellaire location, Prior says the restaurant has not raised its food prices in the roughly 3½ years it has been open.

Now, customers who pay by card are charged a 3.5% surcharge.

Prior says credit card processing fees were costing the business approximately $5,000 to $10,000 per month. He says the surcharge helps offset those fees and allows the restaurant to put more money toward maintaining the quality of its food and operations.

Prior says the restaurant has considered increasing its menu prices but does not want to do so if it can find other ways to manage the rising expenses.

The business has also been approached about operating ghost kitchens, and Prior says they continue to explore different ways to make the restaurant more efficient.

Finding ways to give customers more value

As costs continue to rise, Prior says Lankford’s is also looking at changes that could give customers more for their money.

The restaurant is working on adjustments to its menu that would include sides with some meals, giving customers additional value without simply increasing prices.

For now, Prior says the goal is to continue cutting waste, working with suppliers and finding other ways to absorb rising expenses while maintaining the quality customers have come to expect from the longtime Houston restaurant.

BellaireNewsTop Stories