Texas restaurants face rising costs and workforce challenges

EL PASO, Texas (KVIA) -- Restaurants across Texas are facing higher costs for food, labor, insurance, utilities and payment processing, according to the Texas Restaurant Association’s Q2 2026 Economics Report.

The report says some operators now rank insurance premiums among their three largest expenses.

It also says many consumers remain price-sensitive and less willing to pay higher menu prices.

The report identifies immigration enforcement as another factor affecting restaurant staffing.

A majority of operators surveyed reported some immigration-related impact on their employees.

Local restaurant owners in El Paso are being interviewed about how these issues are affecting their businesses and workers.

Industry leaders are also expected to discuss potential relief during the upcoming Texas legislative session.

This is a developing story, check back for updates.