Inflation has put a 117-year-old restaurant at risk of closure.
Ike’s Chili in Tulsa, Oklahoma, survived the Great Depression, two World Wars and the pandemic, but the latest bout of inflation could finally be its downfall.
‘The cost of everything’s just going up, and we’ve got to figure out how to manage it right,’ managing partner Len Wade told CNN.
The spiraling cost of beef has hit the restaurant particularly hard.
In July, wholesale beef prices surged 11 percent compared to the same time last year, according to the latest data from the Bureau of Labor Statistics.
As well as rising costs, consumers are also eating out less as they try to save money in an uncertain economy.
‘I need to raise my prices again right now, but I’m concerned that I’m going to price people out,’ Wade told the publication.
He said he had considered changing his menu to cut costs on dishes but that it would ultimately damage the quality of the restaurant.
Ike’s Chili in Tulsa, Oklahoma, is at risk of closure thanks to years of inflation
Over the last four years food prices have soared 21 percent, according to the Producer Price index.
Increased overheads, plus the disruption of the pandemic, led to a raft of high profile closures last year.
TGI Fridays fell into bankruptcy, closing around 130 locations.
The chain’s sales decline accelerated rapidly during the Covid-19 lockdowns in 2020.
The restaurant reported further difficulties in 2021, with inflation squeezing the chain as food-away-from-home prices surged, according to the Consumer Price Index.
Several other national chains, including Red Lobster, World of Beer Bar & Kitchen, and BurgerFi also filed for Chapter 11 bankruptcy in 2024.
Red Lobster also filed for bankruptcy in May last year – days after closing more than 100 restaurants.
The casual dining favorite’s problems were blamed on rising lease and labor costs in recent years, and its infamous $20 all-you-can-eat shrimp deal that backfired.
Managing partner Len Wade (right) said the biggest issue is the rising cost of beef
Ike’s Chili survived the Great Depression, two World Wars and the pandemic, but the latest bout of inflation could finally be its downfall (Pictured: The restaurant in 1972)
TGI Fridays has closed 130 locations since filing for bankruptcy in 2024
The wine and whisky industries are also suffering from price pressures and consumer pullbacks.
Campari-owned Wild Turkey saw an 8 percent decline in US sales during the first half of 2025, while sales of Jack Daniel’s dropped 6 percent year-over-year.
In January, Jack Daniel’s parent company Brown-Forman announced layoffs affecting 12 percent of its workforce and the closure of a major barrel-making facility in Louisville.
A host of Kentucky distilleries have also been tipped into bankruptcy.
The wine industry is also suffering, with vineyards forced to close and one wholesaler leaving the largest wine market in the country.
Texas-based Republic National Distributing has said that it will no longer do business in California after September 2, blaming rising costs of doing business in the state.
This sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production.
