FOX Business’ Brian Brenberg looks at rising fast-food prices under President Biden.
Has a trip through the drive-through become an extravagance? The vast majority of Americans say so.
A recent nonprobability survey conducted by LendingTree found 78% of consumers now consider fast food to be a “luxury” purchase due to how expensive the meals have become.
Customers line up outside an In-N-Out Burger restaurant. (Robert Gauthier/ Los Angeles Times / Getty Images)
Half of those polled said they view fast food as a luxury because they’re struggling financially. This is especially true among Americans who make less than $30,000 a year (71%), parents with young children (58%), and Gen Zers (58%).
Americans love their fast food, but a majority say they are pulling back on their consumption due to high prices. The findings show 3 out of 4 Americans typically eat fast food once a week, but 62% of respondents said they are eating it less frequently due to the cost.
MSNBC’S RUHLE WANTS ‘ECONOMIC EXPLAINER’ TO TELL ‘CONFUSED’ AMERICANS THEY’RE ‘DOING QUITE WELL’
Sixty-three percent of those surveyed agreed fast food should be cheaper than eating at home, but 75% say that is not the case. Nearly half of Americans (46%) say a meal at a fast-food restaurant costs about the same as one at their local sit-down restaurants, and 22% said fast food is actually more expensive.
A recent survey reveals that Americans think fast food is too expensive. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
Fast-food price hikes have outpaced inflation in recent years. Data from the Federal Reserve Bank of St. Louis shows the cost of fast-food meals is up 41% from 2017, while the consumer price index has risen by 35.9%.
Columnist Dan O’Donnell of the free market think tank the MacIver Institute wrote in a blog post on Thursday that prices on “basic items like McDonald’s cheeseburgers and Chick-fil-A nuggets have risen as much as 200% in less than five years with dire consequences for the lower- and middle-class families who make up much of the fast food customer base.”
FAST-FOOD CHAINS ARE OFFERING LOW-COST DEALS FOR CUSTOMERS; HERE ARE 5
“Fast food patrons are generally lower-income earners — many with young children — who rely on a quick, affordable meal before soccer practice or a band concert,” O’Donnell wrote. “When prices at these restaurants spike from $35-$40 for a family meal to $65-$70 in just a few years, those families either have to sacrifice a night out or extend themselves just a little further to afford it.”
A family prays over their meal before eating lunch in their home in Fruita, Colorado, on April 28. (Kelsey Brunner / Washington Post / Getty Images)
In the LendingTree survey, when asked about their go-to for an easy, inexpensive meal, 56% of respondents cited making food at home. And that is exactly what more people are doing.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Global restaurant chains such as McDonald’s and Starbucks have seen lower-income customers opting to eat more meals at home amid a cost-of-living crisis, prompting the companies to offer steeper promotions in an attempt to lure customers back.
This week, Wendy’s rolled out a $3 budget-friendly breakfast meal, and McDonald’s is planning a $5 combo meal in June. Both offerings will be for a limited time.
Credit: Source link
