Breakfast was once a beloved meal, thanks to dishes like syrup-drenched pancakes, stuffed omelettes, and crispy bacon.
Times have changed, and while breakfast may be considered the most important meal of the day, it’s becoming increasingly difficult for many Americans to afford.
The harsh reality: Prices for food at home climbed 2.6%, while prices for food away from home rose 3.7% in the 12 months ended September 2025, according to recent U.S. Bureau of Labor Statistics data.
Higher grocery bills and restaurant costs are forcing more Americans to skip meals to save money, with 27% admitting to doing so, according to a Credit Karma survey.
While prices have increased across all industries, it seems as though few have seen hikes as steep as those in the restaurant sector, especially for breakfast.
Breakfast chains’ prices climb
Amid an alarming price surge among popular American breakfast chains nationwide, one iconic chain stands out.
Between 2020 and 2025, menu prices at 16 major restaurant chains, including IHOP (DIN), Denny’s (DENN), Cracker Barrel (CBRL), and Waffle House, increased by an average of 39%, nearly double the national inflation rate of 22%, according to FinanceBuzz.
While that number already seems astronomical in only five years, IHOP, also known as International House of Pancakes, surpassed these rivals. It has raised the prices of its top 10 menu items by 82% during that time period.
IHOP’s breakfast-chain competitors have also gotten more expensive, but to a lesser degree, with menu price increases of 36% for Denny’s, 35% for Cracker Barrel, and 32.7% for Waffle House.
Breakfast chain price increases 2020-2025
- IHOP: 82%
- Denny’s: 36%
- Cracker Barrel: 35%
- Waffle House: 32.7%
Image source: Greenberg/Universal Images Group/Getty Images
IHOP faces sales declines and restaurant closures
Hefty price increases on its beloved menu items have accompanied IHOP’s sales declines and restaurant closures over the last few years.
In the third quarter of fiscal 2025, IHOP’s domestic same-store sales declined 1.5% year over year, and at least 12 locations closed globally compared to the previous year.
However, IHOP is not alone in its struggles; its competitors are navigating the same fate amid economic uncertainty, weakened spending, and ever-evolving consumer habits.
More Breakfast Chain insights:
- IHOP wants to give struggling Americans a cheaper breakfast
- Fast-growing, cult-favorite chain cuts expansion, ends breakfast
- Popular breakfast chain struggles to stay on the menu amid closures
In October 2024, Denny’s revealed plans to permanently close around 150 locations, following more than 80 closures earlier in the year. By the end of 2025, the breakfast chain expects to shutter another 70 to 90 restaurants, approximately 10% of its total footprint.
Cracker Barrel’s Maple Street Biscuit Company is also set to close 14 restaurants in 2026, shrinking its presence by 21%.
IHOP launches value offerings amid rising prices
It’s not all bad news for IHOP, however. The chain has revamped its offerings and simplified its menu, making operations quicker and more efficient while providing value to consumers.
“Our goal is to improve overall speed of service and franchisee margins, and these measures will help us continue to deliver the best-in-class experience that our guests expect from IHOP,” said IHOP President Lawrence Kim during an earnings call.
In September, IHOP introduced its first-ever permanent value menu, featuring four classic breakfast options served daily for around $6 or $7 each, depending on location.
“At IHOP, we believe great food should be accessible to everyone, every day,” said Kim in a press release. “We know our guests are more value conscious than ever, so the launch of IHOP’s Value Menu is a direct response to what they want — delicious food, variety, abundance, and affordability without compromise.”
The breakfast chain also made a few changes to its menu. Less than a year after launching, its “Pancake of the Month” promotion is now “Pancake of the Moment,” with a new or seasonal pancake being introduced every other month, instead of every month.
“Value pricing gives customers the confidence that they are getting the biggest bang for their buck without compromising taste and quality,” HungerRush Senior VP of Marketing Shannon Chirone told Restaurant Dive.
Breakfast chains bet on value menus to boost growth
Value-menu traffic rose 1% in the quarter ending June 2025, a 2% increase from the prior year, marking positive growth for the first time in the last three years, according to Circana.
Still, overall traffic in the food service industry declined 1%, suggesting consumers are eating out less often. To stay competitive, many restaurants are now trying to match fast-food pricing by launching new value deals and promotions.
“It’s important for restaurants to remember that value is rarely defined only by price,” said Circana Senior VP and Industry Advisor for Food and Foodservice David Portalatin in a statement. “Operational excellence in providing quality, affordability, great experiences, and convenience is what leads winning restaurants and their supply chain partners to greater success.”
The same Circana study reports that value buyers are 33% more likely than non-value buyers to purchase value menu items when visiting other restaurant chains, indicating they actively seek out deals across various brands.
“With food prices still climbing, people are cutting back. This is not because they don’t like IHOP, but because the math doesn’t math anymore,” Retail Tech Media Nexus CEO Dominick Miserandino told TheStreet.
“When chains roll out value menus, they’re really acknowledging the consumer’s reality: Families need affordable options. IHOP’s move isn’t just a promotion, it’s about survival.”
