The cost of labor is about 25% of the cost of eating out, not counting the tip. So if the 25% labor increases 15% then the OVERALL cost of dining out goes up 3.75% ( = .15 x .25 ). Wow we are all going to die!!! I had to pay 4 cents more per dollar spent!!! OUTRAGEOUS!!! /sarc
Yes, but restaurants usually mark up cost by a factor of 3 so that really means an increase of gross prices of over 10%.
Then, the food you are purchasing to cook also goes up because the wholesaler also has to increase prices due to wages. Food bills at restaurants will easily be 10 to 20% higher now.
If there were zero inflation, that would be true. But inflation on food is probably 4% to 5% annually, so you are looking at a 10% one-time increase. That is noticeable on a menu and makes people reconsider. Our local airport raised “Economy” parking prices 25% on January 1!