Fast food has long been a mainstay of the American diet because it is, or has been, very cheap.
Not so much anymore.
Over the past five years, prices for popular menu items at chains like McDonald's and Taco Bell have increased significantly. The price of a Big Mac or Chalupa has doubled since 2019, according to the archived and current pages of the Fast Food Menu Price Online Tracker.
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Overall restaurant inflation, while significant, has been much more moderate by comparison, with the price of eating out increasing an average of 30% since 2019.
“My New Year's resolution is to start eating packed lunches instead of buying fast food every day, because fast food is ridiculously expensive right now,” one Reddit user declared earlier this year.
Fastfoodmenuprices.com's tracker shows that between 2019 and 2024, the price of an order of medium fries more than doubled from $1.79 to $4.79, and the price of a Big Mac meal rose from $5.99 to $12.69. The price has increased. Subway's BLT footlongs are now $8.49, up from $5.50. And Chipotle's chicken burrito went from $6.50 to $10.70.
Amid boiling consumer anxiety, fast food sales are declining as customers look elsewhere for convenient meals.
“In nearly every major market, industry sales are slowing,” McDonald's CEO Chris Kempczinski told analysts last month. “Now more than ever, we know our customers want reliable value every day.”
In response, McDonald's recently announced the addition of a $5 value menu, and Wendy's responded with a $3 breakfast deal. However, both are available for a limited time. Approximately 90% of McDonald's locations in the U.S. continue with the $4 meal deal.
Customers can also find deals on fast food apps that companies are rolling out as loyalty programs. Some offer low prices or free items when you sign up.
“We know how much it means to our customers when McDonald's provides meaningful value and communicates that in national advertising,” McDonald's USA said in a statement. “This has been true since our inception and has never been more important than today.”
Subway, Chipotle and Taco Bell did not respond to requests for comment on the price hikes.
Fast-food executives blame higher wages and rising ingredient costs for the recent spike in drive-thru prices. Individual franchisees typically have control over pricing, which varies widely across the country based on local wages.
McDonald's says restaurant profit margins have returned to 2019 levels, just as the prices McDonald's pays for burgers, buns and wrappers have fallen to pre-pandemic levels. Mr. Kempczinski said that rising wages are currently supporting prices.
Taco Bell has been able to sell more Crunchwraps and maintain profits despite the higher prices of many menu items: Currently, about one-third of recent transactions at Taco Bell include items from the Cravings menu that cost $3 or less.
“The industry is seeing some low-income consumers drop out,” said Yum! CEO David Gibbs. A brand that owns Taco Bell, KFC, and other chains. “You don't see anything like that at Taco Bell.”
Gibbs told investors earlier this month that KFC was “struggling.”
“We know how to bring that brand to life and connect with consumers around the world. We have to do it better in the United States.”
Chipotle is confident its “healthy, high-quality” ingredients will continue to attract customers even as bowls and burritos cost more than $10.
“We believe Chipotle will stay within budget because we understand and understand how consumers want to balance their budgets,” company Chief Financial Officer John Hartung said last month. Stated.
Prices at Bloomington, Minn.-based Dairy Queen vary by market based primarily on wages, but archived menus show they haven't risen as rapidly in recent years.
“Prices have to adjust as input costs rise,” International Dairy Queen CEO Troy Bader said in a recent interview. “The challenge is staying relevant to our guests and being as accessible as possible. It's about finding the right balance.”
