Tariffs threaten to drive up prices at Arizona restaurants, industry leader says

PHOENIX – President Donald Trump’s tariff policies are threatening to drive up prices at Arizona restaurants, according to an industry leader.

“Will this impact menus? Not necessarily right out of the gate,” Steve Chucri, the longtime president and CEO of the Arizona Restaurant Association, told KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos on Friday.

“But if this is a longstanding tariff issue, yes, sadly we will have no choice but to have to push those to menu price increases.”

However, Chucri believes restaurants will only hike prices as a last resort because they know diners have limits to their discretionary spending.

“We can easily be pushed to the side because of that cost basis alone, and we hate to see that,” he said. “That’s why I don’t think you’re going to see a reflex action by restaurants to automatically just raise menu prices to try and withstand it. It’ll be the last thing we do.”

Chucri, a former Maricopa County supervisor, has seen plenty of ups and downs since becoming the Arizona Restaurant Association’s leader in 2002. He called the current situation “the most serious threat we’ve seen by way of tariffs.”

How tariffs could be a buzzkill for Arizona restaurants

Last week, Trump threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes ahead with a tariff on American whiskey.

That wouldn’t just drive up drink prices at Arizona restaurants, Chucri said. It could leave them high and dry.

“It’s one thing to say you’re going to have to really push this cost up on alcohol, but the alcohol may not be able to be available. I mean, between the distributors and everything else, it may be even more challenging to get the alcohol,” he said.

Chucri said his organization is already receiving calls from potential out-of-state tourists who are concerned about the availability of their favorite food and beverages.

“That is actually not any kind of poppycock or anything else. That is legitimate,” he said.

The Associated Press contributed to this report.

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