Millions of Americans are fed up with fast-food prices

Prices at America’s largest fast-food chains have risen above the rate of inflation over the past five years as companies come under fire for “greed inflation.”

Customers are now voting with their wallets, driving traffic to chains down 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.

It means that major chains like McDonald’s, Wendy’s, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer hamburgers, pizzas and burritos.

It comes as social media users increasingly complain about high fast food prices, with a McDonald’s in Connecticut recently criticized for selling a Big Mac meal for $17.59.

Figures from the US Labor Department show that fast food prices are 33 percent more expensive than in 2019. By comparison, grocery costs have increased only 26 percent, while the overall consumer price index (CPI) rose 19 percent in that time.

Chains such as McDonald’s, KFC and Wendy’s have been repeatedly accused of ‘greedflating’ – the practice of raising prices more than necessary while blaming inflation.

According to analysis of FinanceBuzzSince 2014, McDonald’s menu prices have doubled.

Similarly, costs at Popeyes have increased 86 percent over the past decade, while Taco Bell has seen prices increase 81 percent.

Starbucks and Subway each increased their prices by 39 percent during the same period. FinanceBuzz looked at the average costs of 10 different menu items per restaurant.

But the approach seems to be counterproductive. McDonald’s CEO Chris Kempczinski said in an earnings call last week: “Consumers are certainly very picky about how they spend their money.

“I think it’s important to recognize that all income cohorts are looking for value.”

Starbucks also saw visitor traffic decline by around 7 percent in the three months to March 31. This is the brand’s steepest quarterly decline since 2010.

Some chains have broken the trend by keeping prices the same. Domino’s, for example, has kept its national mix-and-match deal at $6.99 since 2022.

CEO Russell Weiner recently explained in an interview, “Customers just don’t want surprises.”

Americans are turning their backs on fast food as some of the country’s largest franchises continue to raise the prices of what were once affordable meals

McDonald’s CEO Chris Kempczinski (pictured) said in an earnings call last week: ‘I think it’s important to recognize that all income cohorts are looking for value’

But in California, the problem has been exacerbated by a new $20-an-hour minimum wage for fast-food workers.

The legislation was introduced by Governor Gavin Newsom in response to the 2022 workers’ strike.

It prompted bosses at McDonald’s, Wingstop, Jack in the Box and Chipotle to announce they would pass higher labor costs on to customers in California through higher prices.