Breakfast was once a favorite meal, with dishes like syrup-soaked pancakes, stuffed omelets, 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 it.
The harsh reality: In-home food prices rose 2.6 percent and out-of-home food prices rose 2.6 percent in the 12 months ending in 2025, according to the latest data from the U.S. Bureau of Labor Statistics. rose by 3.7 percent in September.
Higher grocery bills and restaurant costs are causing more Americans to skip meals to save money, with 27% admitting to doing so, according to a Credit Karma survey.
While prices have risen across all industries, few seem to have seen such steep rises as the restaurant sector, particularly for breakfast.
Amid alarming price hikes among popular American breakfast chains across the country, one iconic chain stands out.
According to FinanceBuzz, between 2020 and 2025 menu prices at 16 major restaurant chains, including IHOP ( DIN ), Denny’s ( DENN ), Cracker Barrel ( CBRL ) and Waffle House, increased an average of 39 percent.
While that number already seems astronomical in just five years, IHOP, also known as the International House of Pancakes, has surpassed these rivals. During that period, it increased prices on its top 10 menu items by 82%.
IHOP’s breakfast chain competitors also saw price increases, but to a lesser degree: Denny’s menu prices increased 36%, Cracker Barrel – 35%, and Waffle House – 32.7%.
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IHOP: 82%
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Denny’s: 36%
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Cracker Barrel: 35%
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Waffle House: 32.7%
Over the past few years, IHOP’s declining sales and restaurant closings have been accompanied by huge price increases on favorite menu items.
In the third year of 2025 In the fiscal quarter, IHOP’s domestic same-store sales fell 1.5% year-over-year, and it closed at least 12 locations worldwide from a year ago.
But IHOP is not alone in its struggles; its competitors face the same fate due to economic uncertainty, weakened spending and ever-changing consumer habits.
More Breakfast Chain Insights:
in 2024 In October, Denny’s revealed plans to permanently close about 150 locations after more than 80 closings this year. Until 2025 by the end of the year, the breakfast chain expects to close another 70 to 90 restaurants, or about 10% of its total footprint.
Cracker Barrel’s Maple Street Biscuit Company 2026 also intends to close 14 restaurants and reduce its presence by 21%.
But it’s not all bad news for IHOP. The chain has revamped its offerings and streamlined its menu, making transactions faster 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 our guests have come to expect from IHOP,” IHOP President Lawrence Kim said during the earnings call.
September IHOP has introduced its first permanent value menu, featuring four classic breakfast options served daily for around $6 or $7, depending on location.
“At IHOP, we believe that great food should be available to everyone, every day,” Kim said in a press release. “We know our guests are more value-conscious than ever, so introducing IHOP’s value menu is a direct response to what they want – great food, variety, abundance and affordability without compromise.”
The breakfast chain also made some changes to its menu. Less than a year since its inception, the Pancake of the Month promotion is now the Pancake of the Moment, with a new or seasonal pancake introduced every other month instead of every month.
“Value pricing gives customers confidence that they’re getting the most bang for their buck without compromising on taste and quality,” Shannon Chirone, HungerRush’s senior vice president of marketing, told Restaurant Dive.
According to Circana, during the quarter ending in 2025 in June, value menu traffic increased by 1 percent, which is 2 percent. more than the previous year, which for the first time in the last three years shows positive growth.
However, overall traffic in the foodservice industry fell 1%, indicating that consumers are eating out less often. In order to stay competitive, many restaurants are now trying to match fast food prices by announcing new value offers and promotions.
“It’s important for restaurants to remember that value is rarely defined by price alone,” David Portalatin, Circana senior vice president and foodservice industry advisor, said in a statement. “Operational excellence in quality, affordability, great experience and convenience is what sets winning restaurants and their supply chain partners on the path to greater success.”
The same Circana study found that value shoppers are 33% more likely to purchase value menu items when visiting other restaurant chains, indicating that they are actively seeking out cross-brand offerings.
“With food prices still going up, people are cutting back. It’s not because they don’t like IHOP, it’s because math isn’t math anymore,” Retail Tech Media Nexus CEO Dominic Miserandino told TheStreet.
“When chains roll out value menus, they really recognize a consumer reality: Families need affordable options. IHOP’s move is not just about advertising, it’s about survival.”
Related: Starbucks is selling its second-biggest business
This story was originally reported by TheStreet in 2025. on November 5, where it first appeared in the restaurants section. Add TheStreet as a preferred source by clicking here.