The cost of doing business continues to climb, and local restaurants are feeling the impact.

According to the U.S. Department of Agriculture, food prices are up 3 percent compared to July 2025, creating new challenges for restaurant owners already navigating higher operating expenses. From ingredients and supplies to utilities and maintenance costs, the rising prices are affecting nearly every aspect of the restaurant industry.

At Panos Family Restaurant, owner Evan Lagace says he is working hard to keep menu prices affordable for customers, especially families who are also dealing with higher living costs. However, he acknowledges that restaurants are facing increasing pressure as the cost of food and everyday necessities continues to rise.

The family-owned business has a long history in the community. In the early 1970s, Panos Family Restaurant sold a plate of spaghetti with meat sauce and Italian bread for just $1.19. Today, that price serves as a reminder of how dramatically costs have changed over the decades.

Lagace, the fourth generation to operate the family restaurant, says the increases extend far beyond food. Everything from kitchen supplies and equipment to cleaning products and maintenance expenses has become more expensive, making it more difficult for restaurant owners to balance affordability with profitability.

The challenges facing Panos Family Restaurant reflect a broader trend impacting businesses and consumers alike. According to consumer price data reported by MoneyWatch, prices have increased 3.4 percent over the past year. As inflation continues to affect goods and services across the economy, local restaurant owners are adapting as best they can while striving to provide quality meals at reasonable prices.

Despite the challenges, Lagace says his focus remains on serving the community and preserving the family tradition that has defined Panos Family Restaurant for generations. While costs continue to rise, he hopes to keep the restaurant a place where families can gather and enjoy an affordable meal.

More about Pano’s can be found online here.