FOX Business’ Brian Bremberg looks at rising fast food prices under President Biden.
Fast food is loved in America because it is cheap and convenient.
At least that’s how it used to be.
The cost of eating out at restaurants has risen nearly 22% since President Biden took office, according to the latest inflation report from April, but fast food has been hit especially hard, with the most popular restaurant chains seeing prices skyrocket even before the COVID-19 pandemic.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| MCCD | McDonald’s Co., Ltd. | 257.93 | -7.84 | -2.95% |
| CMGB | Chipotle Mexican Grill Co. | 3,138.28 | -15.10 | -0.48% |
| Quick Service | Restaurant Brands International Inc. | 67.21 | -1.07 | -1.57% |
| delicious | Yum Brands Inc. | 137.01 | -2.12 | -1.52% |
For example, a McDonald’s Big Mac sandwich cost $3.99 in 2019. Today, that price is nearly double, at $8.29, according to the online tracking site Fast Food Menu Prices.
About 80% of Americans consider fast food a “luxury item” because of its high price.
Overall, under Biden, dining out has increased by nearly 22% since 2021, according to data from the Bureau of Labor Statistics. (Fox Business/Fox News)
Gone are the days when a Subway footlong cost $5. A BLT footlong, which cost $5.50 in 2019, will cost $8.49 in 2024, though prices may vary by location. Additionally, Chipotle’s popular chicken burrito, which cost $6.50 in 2019, now costs $10.70.
Fast-food executives say rising wages and raw material costs are contributing to higher menu prices.
According to the Federal Reserve Bank of St. Louis, prices at fast-food restaurants are rising faster than the average hourly wage of most fast-food workers. (Fox Business/Fox News)
Data from the Federal Reserve Bank of St. Louis shows that fast food prices are increasing at a faster rate than the average hourly wage of most fast food workers. Fast food prices are also outpacing inflation, increasing 41% since 2017, while the Consumer Price Index increased 35.9%.
Customers are in a bind. Recent surveys show Implemented by LendingTree The survey found that meals have become so expensive that 78% of consumers consider fast food a “luxury” purchase.
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A chicken burrito at Chipotle cost $6.50 in 2019. It now costs $10.70, according to fastfoodmenuprices.com. (Fox Business/Fox News)
Half of those surveyed said they are struggling financially and therefore consider fast food a luxury, especially among Americans making less than $30,000 a year (71%), parents with young children (58%), and Gen Z (58%).
Financial strains are causing fewer people to use drive-thru restaurants: Survey results show that while three in four Americans typically eat fast food at least once a week, 62% of respondents said they are eating out at fast food restaurants less often because of the cost.
Some franchises have responded with temporary bargains: McDonald’s added $5 value menu items in June, and Wendy’s introduced $3 breakfast deals, both for a limited time only.
“Industry sales are slowing in nearly every major market,” McDonald’s CEO Chris Kempczinski told analysts in April. “Now more than ever, we know our customers want reliable value every day.”
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In 2019, a Subway BLT footlong cost $5.50, but the days of the $5 footlong are over. Now, prices vary by location, but can go up to $8.49. (Fox Business/Fox News)
Many fast food restaurants also offer special discounts that can be redeemed through their mobile apps or loyalty programs that reward regular customers with free menu items.
But the fact remains that Americans remember when menu prices were lower, and rising food and gas costs have hurt their view of the economy, which is why Biden continues to tell voters he’s fighting for lower prices.
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“I know many families are struggling. We’ve made progress, but there’s still much more to do. Inflation has fallen more than 60 percent from its peak, and core inflation has fallen to its lowest level in three years,” Biden said after the Consumer Price Index rose 0.3 percent in April, slightly below economists’ expectations.
“Prices are still too high. That’s why my policies will give families more room to breathe by building 2 million new homes to lower housing costs, taking on Big Pharma to lower prescription drug prices, and asking grocery chains, who are making record profits, to lower grocery prices for consumers.”
FOX Business’ Breck Dumas contributed to this report.
