As inflation continues to impact Americans across the country, a new survey finds that nearly 80% of people now consider fast food a “luxury item.”
Morning in America NewsNation correspondent Kelsey Karnstein analyzed a Finance Buzz report that found companies like McDonald’s, Popeyes and Taco Bell have all raised prices substantially, with the Bureau of Labor Statistics saying the price hikes are “outpacing food prices.”
A significant number of Americans consider fast food a luxury, and more than 50% said they have cut back on their purchases because of the price, according to a survey conducted by LendingTree.(Related story: “Not the first time”: Restaurant workers laid off after store closures warn of state minimum wage hike)
“This really makes sense when you break it down: a McDonald’s Big Mac was half the price a few years ago and now costs more than $8. According to FinanceBuzz, McDonald’s prices have more than doubled since 2014, while Popeyes has increased by 86% and Taco Bell has increased by more than 80%. Subway no longer sells a one-foot Mac for $5,” Karnstein said.
“These prices are outpacing inflation. According to the Bureau of Labor Statistics, fast food prices are rising at a faster pace than grocery prices,” she continued. “In a new LendingTree survey of 2,000 people, nearly 80% say fast food is a luxury, and more than 60% say they have cut back on eating fast food because of the price. Many of these surveys suggest that people making less than $30,000 a year, especially those making less than $30,000 a year, are struggling financially and therefore view fast food as a luxury.”
Karnstein also said many franchisees are seeing prices rise because of inflation, saying “the cost of eating out has gone up 22 percent” since Biden took office. As prices rise, Democratic-leaning states like California are raising their minimum wage from $16 to $20 an hour, which is starting to affect some chains as employees cut hours or are laid off altogether.
Franchise consultant Nick Neonakis said in an interview with Karnstein that robotic servicing will be “the way of the future.”
“Mainly robotics technology [is] “Robots are going to replace humans. We’re already seeing ordering kiosks in various places. You call it at the front of the line or at the back of the line, where the food is being made, and the next thing you see is a robot flipping burgers, a robot making fries, etc,” Neonakis said.
While Biden has repeatedly said inflation is heading in the right direction, the latest data on the Consumer Price Index (CPI) shows inflation rose for the third consecutive month in April by 0.3%, compared with the second half of 2023, when it was below 3%.
