- Texas restaurant leaders demanded federal work permits for long-term immigrants to stabilize the labor market.
- Chronic worker shortages are driving record-high food prices and forcing many operators to reduce business hours.
- A recent survey revealed that half of Texas restaurants were not profitable during the last fiscal year.
Texas restaurant leaders pressed Congress on July 30 for a federal work-permit path for long-term, law-abiding immigrants, saying chronic labor shortages are lifting food prices and forcing operators to cut hours. The pressure is showing up on menus.
Kelsey Erickson-Streufert, the association’s chief public affairs officer, put the cost squeeze bluntly.
“Food costs are up 35 percent, labor costs are up significantly, credit card processing fees, rent, insurance, taxes. Every single thing is up double digits,” and added, “We never have enough workers in our industry in Texas.”
Costs stack up fast.
The association wants a federal program for vetted immigrants already in the country, along with immigration legislation that would not shrink the available workforce. It wants the fix upstream.
Advocates say the result would reach beyond dining rooms. They argue it would steady staffing across restaurants and the wider food chain, including agriculture, food processing, and trucking. The chain is linked.
A broader cost argument is now attached to that request. The restaurant group says shortages have become chronic, and it says those gaps are feeding higher operating costs and higher menu prices.
An Aug. 4 opinion piece said labor shortages throughout the food supply chain were pushing costs to an unsustainable level. It cited a Texas restaurant survey showing half of restaurants were not profitable last year, up from 38% in 2024.
The same piece said a crate of tomatoes had climbed from $18 to about $45, while fajita beef rose from about $9 to $13 a pound. Food inflation is hitting basics.
It also reported food prices were 3% higher in June 2026 than a year earlier. A restaurant-industry mid-year report added more evidence, finding 87% of operators reported food cost increases in the first half of 2026 and 77% reported labor cost increases.
Business groups tie the shortage to wider immigration changes
The restaurant industry’s argument is landing in a year of shifting immigration and work-authorization rules. Those changes include the expiration of Temporary Protected Status for large groups of workers in 2026, which business groups say could deepen staffing shortages in hospitality and food-related industries.
A separate Texas business report said leaders see immigration enforcement and work-authorization changes as worsening labor shortages and driving costs. The pressure reaches past the dining room.
The association’s comments were published July 30, 2026. The Aug. 4 commentary followed soon after, as operators kept reporting higher food and labor costs through the first half of the year.
