- Fast food prices have soared 33 percent since 2019, figures show
- Supermarket costs have only increased by 26 percent at the same time
- McDonald’s is the one that has increased its prices the most, while Domino’s has resisted the increases.
Prices at America’s largest fast-food chains have soared above the rate of inflation over the past five years as the companies are criticized for their “greed.”
Customers are now voting with their wallets, causing traffic to chains to fall 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.
It means big chains like McDonald’s, Wendy’s, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer burgers, pizzas and burritos.
This comes as social media users increasingly complain about high fast food prices, with a McDonald’s in Connecticut recently coming under fire for selling a Big Mac meal for $17.59.
Figures from the U.S. Department of Labor show that fast food prices are 33 percent more expensive than in 2019. By comparison, grocery costs rose just 26 percent, while the General consumer prices (CPI) rose 19 percent in that time.
McDonald’s menu prices have doubled since 2014, according to FinanceBuzz analysis
Chains such as McDonald’s, KFC and Wendy’s have repeatedly been accused of “greed,” the practice of raising prices more than necessary while blaming inflation.
According to the analysis of FinanceBuzzMcDonald’s menu prices have doubled since 2014.
Similarly, costs at Popeyes have risen 86 percent over the past decade, while Taco Bell has seen prices rise 81 percent.
Starbucks and Subway each raised their prices by 39 percent in the same period. FinanceBuzz analyzed the average cost of 10 different menu items per restaurant.
But the approach appears to be backfiring. McDonald’s CEO Chris Kempczinski said in an earnings call last week: “The consumer is certainly being very picky in how they spend their money.”
“I think it’s important to recognize that all income groups are looking for value.”
Starbucks has also seen a drop in traffic of around 7 per cent in the three months to March 31. It marks the brand’s steepest quarterly decline since 2010.
Some chains have bucked the trend by deliberately keeping prices the same. For example, Domino’s has kept its national mix-and-match offering priced at $6.99 since 2022.
CEO Russell Weiner recently explained in an interview: “Customers just don’t want surprises.”
Americans are turning their backs on fast food as some of the country’s largest franchises continue to raise prices on what were once affordable meals.
McDonald’s CEO Chris Kempczinski (pictured) commented on an earnings call last week: “I think it’s important to recognize that all income groups are looking for value.”
But in California, the problem has been exacerbated by a new $20-per-hour minimum wage for fast-food workers.
The legislation was introduced by Governor Gavin Newsom in response to the workers strike in 2022.
This led the bosses of McDonald’s, Wingstop, Jack in the Box and Chipotle to announce that they would pass on higher labor costs to California customers through higher prices.
| Company | Percentage price increase since 2014 |
|---|---|
| 1 McDonald’s 2 Popeye 3 cue bell 4 chipotles 5 Jimmy John’s 6Arby 7 king burger 8Chick-fil-A 9 Wendy’s10 Panera11 Subway12 Starbucks Source – Finance Buzz | 100% 86% 81% 75% 62% 55% 55% 55% 55% 54%39%39% |