Now that’s what I call huge prices!
Americans looking to grab a quick bite or indulge in a guilty pleasure are experiencing price shock when they visit their favorite fast-food restaurant due to inflation. Many restaurants like McDonalds, Chipotle and others have raised their prices in recent years due to rising costs. Overall, the cost of eating out rose about 22 percent last year, federal data shows, and fast food has not been spared.
Fast food prices also outpaced inflation, rising 41 percent since 2017. The consumer price index rose 35.9 percent over the same period.
“It’s so annoying because it goes against what we expect and what we’ve come to love about fast food,” said Kimberly Palmer, a personal finance expert at Nerd Wallet USA Today.
Recently, Joe Erlinger, president of McDonald’s USA, told customers that the average menu price at its stores had increased 40 percent since 2019, rather than the 100 percent increase some have claimed.
“Americans across the country are facing difficult decisions about where to spend their hard-earned money,” Erlinger said. “And while we’ve worked hard to give our fans great reasons to come visit us, it’s clear that we – along with our franchisees – must continue to focus on value and affordability.”
According to Quartz, Chiplote officials said this year that customers were not deterred by the 7 percent price increase because sales increased at the same rate.
Here’s a look at how much the prices of some fast food menus have increased in recent years:
McDonald’s
In 2019, a Big Mac at McDonald’s cost $3.99. According to McDonald’s, the average price for a Big Mac is now $5.29, although franchise owners have the autonomy to set prices based on location, which led to one store offering a Big Mac for $18.
To counteract rising prices at McDonald’s, the chain announced that it would offer consumers a cheap $5 menu.
“In our view, this new deal is more about value perception, designed to change the media coverage of McDonald’s recent price increases and refocus on a (higher) priced offering. We believe the new one-month meal deal could actually hurt revenue (check decline) and margins, but could help re-establish McDonald’s as a low-price industry leader,” BTIG analysts said in an investor note reported by CNBC.
Chipotle
The popular burrito chain is not immune to price increases either. A chicken burrito cost $6.50 in 2019, now it is $10.70.
After California enacted a $20 minimum wage earlier this year, Chipotle raised prices in the state by another 6 to 7 percent.
“We’ve taken a modest price increase of 6 to 7 percent. We’ve been monitoring traffic since the price increase. We’re not seeing anything yet, we’re not seeing a change in behavior yet,” Chipotle CFO Jack Hartung told Fox Business. The Big Money Show“It’s still very early, so we’ll keep a close eye on it.”
Taco Bell
In 2019, purchasing a Crunchwrap Supreme in the New York City metropolitan area would have cost $3.49. Now it costs $5.29, an increase of 51.6 percent. That’s a really steep price!
In response to the rising cost of menu items, Taco Bell has released a limited-time “Discovery Box” that costs $5. The box – which includes three different types of tacos and a soft drink – will only be available until June 4.
Chick-fil-A
The chain’s popular nugget boxes aren’t immune to inflation either. In 2019, an 8-pack nugget box cost $3.05 in the New York City metropolitan area. Today, it costs $5.99, an increase of nearly 100 percent.
A premium chicken sandwich in the New York City metropolitan area cost $3.69 in 2019, but now it’s only $6.55—an increase of 79.5 percent.
The company is keeping quiet about the price increases.
Burger King
The Whopper, Burger King’s flagship sandwich, could be purchased in the New York City area for $4.19 in 2019. It now costs $7.79 – an increase of 85.9 percent.
Patrick Doyle, executive chairman of Restaurant Brands International, told CNBC’s Jim Kramer that while things are “a little tougher” for American consumers right now, he still believes Burger King – owned by RBI – offers affordable menu options.
“We believe we now have a great menu offering that includes both higher value and value items,” Mr Doyle said. “So wherever the customer wants to come from and do business with us, we have a great offering for them.”
Subway
The chain that became known for its “$5 footlong” is hardly that anymore. Thanks to rising prices, that idea has disappeared. Now a Subway BLT footlong costs $8.49, while in 2019 it cost $5.50.
Aware of its old marketing campaign, Subway has responded to a social media request to bring back a $5 sandwich for a limited time in 2020.
“We’re excited to bring you back the best deal ever on your favorite sandwich – Subway Footlongs made with high-quality ingredients, freshly baked bread and plenty of veggies,” the company said at the time.
