While inflation is raging and at an all-time high, one might still be consoled by the thought that at least your favourite fast-foods are still staying at the same price as before. However, this is actually not the truth even if it might feel like it.
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As reported by Eat This, Not That! data from National Restaurant Association suggests that in fact fast-food prices have increased 8.5% in September 2022, compared to last year.
Companies like McDonald's or Starbucks raise their prices by only a couple of cents here and there ensuring that you do not notice the full scope of just how much more you are paying for the things that used to cost way lesser in the past.
As per CNBC, companies also use what has been called ‘shrinkflation’ in order to get customers to pay more for less. Basically, fast-food companies reduce the portion sizes of menu items, serving smaller or lesser amount of food for the old price. This means that customers end up paying more for lesser food without realising.
McDonald’s
McDonald's has reported an average U.S. price increase of about 10% year-over-year in the third quarter of 2022. McDonald’s does not even have any ‘dollar menu’ options anymore.
According to McDonald's CEO Chris Kempczinski, the brand has noticed that people do not primarily pick the cheaper priced menu items even when there are cheaper alternatives provided by them.
One of the reasons for this, according to the report is because due to the increase in prices across industries and restaurants, a lot of people head to McDonald’s because that’s the only conveniently priced dining out options they have left.
Domino’s & Starbucks
Domino’s has reported that on an average, prices in its US locations have been raised 5.4% during the third quarter of 2022. The brand predicts that there would be further price increases in the future.
Starbucks raised prices by about 6% in 2022 but the brand has not seen any decline in customer interest.
Regarding Starbucks’ fans, CEO Howard Schultz is quoted as saying,
Their loyalty to Starbucks has been quite significant and predictable.
Starbucks prices have been sneakily rising by the steadily increasing prices of add-ons like syrups and sauces which goes unnoticed by most of us.
Sources used:
Eat This, Not That!: ‘The Biggest Fast-Food Chains Are Increasing Prices But Hope You Don't Notice’
CNBC: ‘Higher prices, skimpier portions and apps — how fast-food chains are changing value deals’
