2024-07-23 10:36:52 ET
Summary
- Fast food prices have risen twice the total inflation rate in the last ten years, with McDonald's, Popeyes, and Taco Bell leading the price increases.
- Eight in ten Americans consider fast food a luxury, leading to low traffic and stagnant same-store sales in 2024.
- Restaurants are implementing new technologies, cost containment measures, and value promotions to regain traffic and increase profitability.
Introduction
Much has been said about the consecutive price increases for quick service restaurants ('QSRs'). A recent survey carried out by FinanceBuzz confirmed what everyone was already feeling in their pockets: Fast food prices have risen on average twice the total inflation rate in the last ten years!
According to this same survey, the quick service restaurant that increased its prices the most in this period of time was McDonald's ( MCD ), showing an increase of 100% (more than three times the total inflation in the period, which was approximately 31%). But it does not stop there. Popeyes, a brand owned by Restaurant Brands International ( QSR ), also increased its prices by 86% during this period, followed by Taco Bell ( YUM ) with an increase of 81%. Even those restaurants that were successful in raising menu prices more slowly still did so well above inflation and the rate of menu price increases at full-service restaurants. Wendy's ( WEN ), Burger King, Chick-fil-A and Arby's increased their prices by 55%....
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Inflation Forces Quick Service Restaurants To Innovate Amid Less Foot Traffic