78% of Americans see fast food as a ‘luxury’: Survey
- Study: 78% think fast food is a 'luxury'
- Fast food prices are up 60% since 2014
- Several brands now introducing $5 value meals
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(NewsNation) — A drive-thru is supposed to feel like a quick and cheap alternative to cooking for yourself, but a new survey from LendingTree is the latest to show that Americans don’t feel that way at the moment.
Seventy-eight percent of respondents told LendingTree they view fast food as a “luxury.” People making less than $30,000 per year and people with kids concurred in even bigger numbers, topping 80%.
Half of all respondents said they view it as a luxury because they’re struggling financially.
Fast food prices rise faster than inflation
Frustrating consumers further is the fact that fast food prices are outpacing general inflation numbers since 2014.
FinanceBuzz recently found Popeyes (+86%), Taco Bell (+81%), Chipotle (+75%) and Jimmy John’s (+62%) have also hiked prices much faster than inflation over the past decade.
But the biggest riser was McDonald’s: Its prices are up 100% since 2014.
Fast food franchisees say rising labor costs, including California’s minimum wage hike for fast-food workers, are forcing prices upwards.
How are fast food companies responding?
McDonald’s has begun work on a new $5 value meal, according to Bloomberg and CNBC. The $5 meal reportedly would include four items: a McChicken or McDouble sandwich, four-piece Chicken McNuggets, fries and a drink. Burger King is working on a comparable meal, according to Fox Business. Wendy’s is also offering a $3 breakfast option.
But they will also look for ways to hold onto profit margin in ways that might have once seemed unthinkable. McDonald’s remains on course to remove self-serve soft drink fountains from its restaurants by the beginning of the next decade, and is letting franchisees charge for refills if they choose.
Analysts also think self-order kiosks and more automation behind the counter are inevitable to stabilize prices.
“You’re already seeing it with the kiosk ordering in a number of the different locations that are out there,” franchise consultant Nick Neonakis told NewsNation. “Behind the line where the food is being made, that’s the next thing that you’re going to see: Robotic burger flipping, robotic fries and so on.”
