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Fast food inflation: Which chains are raising prices the most?
It's no secret that prices keep rising. From home prices to personal items, the cost of living in the United States has increased 22% since 2019, and consumers are looking for ways to combat rising costs.
As Americans desperately search for ways to make ends meet, fast food, historically one of the easiest options for the wallet, is becoming less and less cost-effective. In fact, fast food prices are increasing, sometimes outpacing the national inflation rate, sparking backlash online and on social media.
Have fast food prices really changed so dramatically? If so, how much? FinanceBuzz is always looking for ways to save money and wanted to get a better understanding of how much going to the drive-thru is actually costing consumers. To find out, FinanceBuzz collected price data from 12 popular fast food restaurants over the past 10 years and calculated how much prices have increased compared to the national inflation rate.
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How does fast food inflation compare to real-world inflation?
According to the Bureau of Labor Statistics, commodity prices in the United States have increased 31% since 2014, meaning that $100 in 2014 will be worth $131 in 2024. Much of this change has occurred in the past five years, with inflation increasing 22% since 2019.
So how do the average increases in menu prices at popular fast food chains compare to these rates?
Restaurants rated by FinanceBuzz increased prices by an average of 60% between 2014 and 2024, meaning they increased prices almost twice as fast as the national inflation rate.
Five restaurants – McDonald's, Popeyes, Taco Bell, Chipotle and Jimmy John's – raised prices by more than double the national inflation rate. McDonald's raised prices so much that its average menu price is now more than three times the national inflation rate.
Beyond the Golden Arches, data shows that Popeyes, Taco Bell, and Chipotle have all seen price increases of more than 75% over the past decade. Meanwhile, Subway and Starbucks have kept their prices the most stable among the major chains, but they're still outpacing national inflation. Here are some notable examples:
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The worst culprit of dramatic price hikes is McDonald's. The chain has been in the news for all the wrong reasons lately: its $18 Big Mac combo garnered a lot of attention online, and McDonald's CEO promised affordability in a recent earnings call. According to our data, McDonald's prices have doubled since 2014, an average increase of 100%.
Overall, that rate is more than three times the national inflation rate over the same period. One illustrative example is the McChicken sandwich: A staple on the chain's dollar menu in 2014, the sandwich now costs $3 in some locations, a 200% price increase.
Former value menu items, such as the McDouble and medium fries, saw the biggest price increases on McDonald's entire menu.
How rising fast food prices affect consumers
While a step change in fast-food prices might not seem like the biggest dollar change in consumers' wallets, it is an illustration of America's new financial reality: a dollar isn't worth as much as it used to, and American families need to figure out how to make ends meet.
Another area where many Americans are feeling the squeeze is auto insurance: premiums have risen by more than 20% in the past year, sending many scrambling to find cheaper auto insurance options. And just like fast food, insurance price increases tend to hit lower-income earners the hardest.
Some are turning to credit cards to make up the difference. After years of declining balances, credit card debt is once again rising to all-time highs. Cards with balance transfer incentives or 0% introductory APR offers are especially attractive for those trying to make up gaps in their monthly budgets or seeking debt relief.
Others, with no way to make more on their current income, are looking to make extra money on the weekends or find higher paying jobs. With no easy solutions and no relief in sight, inflation is likely to remain a top concern for Americans heading into this year's presidential election. In fact, a recent FinanceBuzz poll found that inflation is currently the top financial issue among American voters.
Other notable examples of rapid inflation
Taco Bell
Average price increase: 81% Notable price increases: Doritos Locos Tacos have increased from an average price of $1.39 in 2014 to $2.59 in 2024 (+86%), and Cheese Gordita Crunch has doubled from $2.49 in 2014 to $4.99 today. The Beefy 5-Layer Burrito has increased from an average price of $1.59 in 2014 to $3.69 today, which is a 132% increase.
chipotle pepper
Average price increase: 75% Notable price increases: In 2014, hungry customers could get burritos, bowls, tacos and other entrees for less than $6.75 on average. Today, those same dishes all cost more than $10.50. And guacamole, which has always cost extra, is now 64% more expensive than it was 10 years ago (from $1.80 to $2.95 on average).
Starbucks
Average price increase: 31% Notable price hikes: Interestingly, some of Starbucks' most popular menu items, like the Chai Tea Latte (+30%) and Mocha Frappuccino (+32%), have kept pace with the rate of inflation. Even better for Starbucks fans and their wallets, the price increases of certain items, like the Café Latte (+22%) and Caramel Macchiato (+17%), have been slower than the rate of inflation, making them a better deal now than they were a decade ago.
Full results and methodology
Check out the full study for a detailed methodology and charts showing all the data collected.
Easy ways to save money on your next fast food order
Earn cash back and rewards: Learn about the best credit cards to use when dining out. These cards can help you earn cash back and discounts when you dine out. Download a mobile app: Many fast food restaurants, including McDonald's, offer discounts and rewards just for using their mobile app. Keep an eye out for upcoming rewards: McDonald's is reportedly considering offering a $5 meal plan to win back consumers unhappy with rising prices. Other fast food chains are likely to follow suit.
This story was produced by FinanceBuzz and reviewed and distributed by Stacker Media.
