Texas restaurants face rising costs, workforce challenges
EL PASO, Texas (KVIA) — Restaurants across Texas are facing higher costs for food, labor, insurance, utilities and payment processing, according to the Texas Restaurant Association’s second-quarter 2026 Economics Report.
Raul Gonzalez, co-owner and executive chef of Starlite Gastropub, says higher gas and grocery costs are leaving El Pasoans with less money to spend on dining out.
“The percentages that are being taken up of people’s paychecks—it’s just simple math. We need prices to come down,” Gonzalez said.
“A bigger portion of people’s paychecks is going to gas their cars. And so there’s going to be less money available for other things. The cost of groceries is higher,” he said.
Gonzalez said he started seeing the impact of inflation in 2024.
“The market has, has definitely changed,” he said.
The Texas Restaurant Association report says some restaurant operators now rank insurance premiums among their three largest expenses. It also says many consumers remain price-sensitive and are less willing to pay higher menu prices.
The report identifies immigration enforcement as another factor affecting restaurant staffing. A majority of operators surveyed reported some immigration-related impact on their employees.
Gonzalez said rising costs contributed to the closure of his second restaurant, which was located next door to Starlite Gastropub.
“That definitely played a part into it. In years past, the, you know, the businesses that were here were all flourishing,” Gonzalez said.
Gonzalez said restaurant owners and customers need relief from rising costs. Industry leaders are expected to discuss potential relief during the upcoming Texas legislative session.
For now, Gonzalez said he remains focused on serving the community through food.
“We’re providing good food, but we’re also providing a story and we’re providing a connection…you can’t really market for that, you know, but that’s just kind of what we do. And that’s what makes us different,” said Chef Raul “Rulis” Gonzalez.
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