Off The Menu: Higher menu prices in the offing Updated Feb 27, 2021; When the day arrives for restaurant operations to return to “normal,” — whatever that will look like — one thing is almost certain. Those dining out will find themselves facing higher menu prices. The many food production and distribution bottlenecks the pandemic has created have already driven up wholesale and retail food prices, with the U.S. Department of Agriculture reporting that food prices increase 3.5% last, almost double the 20-year average rate. Minimum wage legislation working its way through the U.S. Congress will likely have a substantial impact on restaurant labor costs, especially for those operations that rely on “tip credit” provisions to set wage rates for tipped employees.