Restaurants are feeling the headwinds of rising labor costs and shifting consumer trends, according to one expert.
Labor costs have pushed companies to raise prices in an industry that has already felt the pressure of sales decelerating this year, said Robert Derrington of the Telsey Advisory Group.
"In doing so, I think there may be a shift towards the grocery store for many consumers, especially at the low end of the totem pole," he said in an interview on CNBC's "Closing Bell."
Derrington said, however, that rising labor costs could potentially be offset by lower commodity prices.
"But as we go forward and into next year, the probability is that those tailwinds of low commodity costs will be less beneficial as labor rates continue to go higher and in a period of time where we're just not getting the kind of sales leverage for this industry that we've seen in the past," he said.