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For decades, McDonald’s has been synonymous with affordability. But a recent study by FinanceBuzz reveals a disappointing trend: McDonald’s menu prices have doubled since 2014, outpacing inflation by a significant margin (about 60%). This dramatic price increase has led many to question the future of fast food affordability.
The FinanceBuzz study found that over the past 10 years, fast food restaurant prices have risen between 39% and 100%. This increase significantly outpaces the national inflation rate of 31% during the same period. And McDonald’s stands out as the biggest offender, with prices ballooning by a staggering 100%.
McDonald’s Prices Increase 100% Since 2014
For consumers, this means a McDouble that cost $1.19 in 2014 now rings in at $3.19, and a medium fry has jumped from $1.59 to a hefty $3.79. These price hikes have caused vocal outrage online, with a recent $18 Big Mac combo going viral and prompting McDonald’s CEO to emphasize affordability as a core value.
While McDonald’s takes the fast food price hike crown, other chains haven’t been immune. Popeyes follows closely behind with an 86% increase, and Taco Bell rounds out the top three with a still-substantial 81% jump. Subway and Starbucks, on the other hand, saw price increases of “only” 39%, the lowest among the restaurants studied.
The reasons behind these rising costs are complex. Rising ingredient and labor costs certainly play a role, but some analysts point to menu diversification, and of course, supply and demand.
Can They Turn This Ship Around?
The impact of these price hikes is undeniable. The question now becomes…can fast food chains maintain their traditional affordability, particularly for low-income customers who have historically relied on these restaurants for budget-friendly meals? Or are fast food chains looking to pivot their target audience? If so, surely they must realize that commanding higher prices needs to come with an incentive behind it.
In other words, why would customers pay more for less, when they can go to a “higher-brow” sit-down restaurant or a local mom and pop shop to get more bang for their buck? And with better quality fare, to boot.
And then there’s the $1 Menu model which has gone to shambles. Recent conversations on social media have shown that the subject is a sore spot among fast food loyalists, and it’s dissolution possibly even a deal-breaker for continued patronage.
Recent reports show that McDonald’s has pledged to refocus on affordability, but it remains to be seen how they will balance this goal with rising operational costs. Yes, McDonald’s CEO has mentioned in an earnings call, testing value meal deals, and bigger burgers to try to get back on track but the question we’re now facing is…is it just too little, too late? Let us know how you feel in the comments. Can the fast food industry beat the flames licking at their feet?
