Tomato Prices Reach 8-Year High, Impacting Local Restaurants

Businesses grapple with rising costs of tomatoes, flour, and fuel amid global tensions

Apr. 18, 2026 at 6:12am

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A close-up photograph of a pile of vibrant, freshly picked tomatoes on a plain white background, conveying the central role of this produce in the story of rising costs affecting small businesses.As tomato prices surge, local restaurants grapple with the financial impact of rising produce costs.San Diego Today

The Consumer Price Index shows the cost of tomatoes is up 15.3% in March, with additional factors like a 17% tariff on tomatoes and higher fuel costs from the War with Iran also driving up prices for local San Diego restaurants. While some businesses are feeling the pinch, others have found ways to mitigate the impact by sourcing local produce.

Why it matters

The surge in tomato prices, coupled with broader inflationary pressures on ingredients and operations, is putting significant strain on small businesses in the food service industry. How they respond could impact menu prices, quality, and the overall customer experience at local restaurants.

The details

Restaurants that rely heavily on tomatoes, such as Lefty's Chicago Pizzeria, are seeing dramatic cost increases. Co-owner Lauren Hodson said a case of tomatoes that would have cost $25 a couple months ago now costs around $69. Meanwhile, Tribute Pizza's Chef/Owner Matthew Lyons said he hasn't been as affected by tomato prices since his restaurant sources local produce, but has seen inflation on other ingredients like flour.

  • The Consumer Price Index showed tomato prices up 15.3% in March 2026.
  • There is a 17% tariff on imported tomatoes due to the ongoing War with Iran.

The players

Lauren Hodson

Co-Owner of Lefty's Chicago Pizzeria.

Matthew Lyons

Chef/Owner of Tribute Pizza.

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What they’re saying

“It becomes like a real problem for us because prices go up on us.”

— Lauren Hodson, Co-Owner, Lefty's Chicago Pizzeria

“Now it's not the time to compromise on value and compromise on love, right? I mean, in times of uncertainty, the thing that people rely on the most is community, and by supporting your mom-and-pop pizza shop, that's how I think, uh, we stick together. I think that's how we all make it through.”

— Matthew Lyons, Chef/Owner, Tribute Pizza

What’s next

Economists will continue to monitor the impact of rising tomato prices and broader inflation on the food service industry in the coming months.

The takeaway

The surge in tomato prices is the latest challenge facing small businesses in the restaurant industry, forcing them to make difficult decisions about pricing, sourcing, and maintaining quality. However, some are finding creative ways to weather the storm by tapping into local supply chains and focusing on community support.