Survey: Nearly 80% of Americans view fast food as luxury as prices soar

A recent survey from LendingTree revealed that 78% of Americans view fast food as a luxury due to rising prices. The survey asked 2,000 adults how they feel about fast food and how often they eat it. The study, released on Monday, May 27, shows that 62% of Americans said they’ve had to cut back on buying fast food because it’s unaffordable.

According to FinanceBuzz.com, prices have shot up at fast-food joints no matter where people live. The site analyzed data from several fast-food restaurants and found that McDonald’s prices have doubled over the past decade. Meanwhile, Popeyes prices have increased 86% and Taco Bell prices have risen 81%. In addition, Starbucks and Subway prices have jumped by 39%.

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While prices have been going up for years, it has only recently turned into a national issue. Franchises point to rising food and labor costs. In California, fast-food owners have said that they have had no choice but to raise prices, citing the state’s new $20 minimum wage for fast-food workers.

However, some aren’t buying justification for higher prices from fast-food chains.

“Now, they’re addicted to raising prices.” John Zolidis, a financial expert, said. “There is a risk that the whole industry goes too far.”

Zolidis warned that continuously rising prices could drive more customers away.

McDonald’s is hitting back at some of the online criticism over its recent price hike reports. On May 29, Joe Erlinger, the president of McDonald’s USA, posted an open letter on the company’s website.

“Recently, we have seen viral social media posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates,” Erlinger wrote. “This is not accurate.”

Erlinger added that he’s frustrated and worried at hearing about an $18 Big Mac meal being sold.

In 2019, the average price of a Big Mac in the United States was $4.39. Following the COVID-19 pandemic and increased supply chain costs, the average price for the signature burger is now $5.29. According to the company’s president, that’s only a 21% increase.

Wendy’s has also seen online backlash from customers as well, following a proposal for “dynamic pricing,” which would have changed prices throughout the day based on demand. Wendy’s quickly dropped the idea after uproar on social media.

In a push to win back consumer support, Wendy’s and McDonald’s are introducing more affordable options. Wendy’s introduced a breakfast meal deal for $3. McDonald’s is set to bring a $5 value meal to its menu by the end of June.