Recent reports indicate a significant shift in consumer behavior towards the fast-food industry and larger food brands due to rising costs. Since 2014, fast-food prices have consistently outpaced general inflation, leading to a notable increase in menu prices at major chains such as McDonald's, Jack in the Box, Chipotle, and Yum Brands. This price surge is attributed to various factors including inflation, shrinkflation, and increased minimum wages, particularly the $20/hour rate recently implemented in California. As a result, consumers are increasingly withdrawing from purchasing well-known products like Chips Ahoy cookies and Starbucks coffee, expressing frustration with the high costs. Restaurant chains and food manufacturers have observed a decline in sales or a slowdown in growth, which they link to customers' reluctance or inability to accommodate these higher prices, which are reported to be up to a third more than before the pandemic.
INFLATION & THE PERILS OF PRICE-DEPENDENT GROWTH Digesting this recent set of news on consumer price push-back in situations like $MCD, $SBUX and $MDLZ has had me thinking about a very basic & critical construct when it comes to analyzing businesses: how much of the growth is… https://t.co/2R9YqmWaw6
Fast-Food Fight Intensifies as Consumers Pull Back. Don’t Expect Prices to Drop Soon. https://t.co/7QturIAGNg
Why is fast-food so expensive? @CNBC takes a deep dive look into what's happening right now with restaurant prices. Thanks to @TheRyanLBaker for including my thoughts as well as some of our @Technomic data. #restaurant #fastfood #QSR #foodservice https://t.co/JR3kthZll4
🇺🇸 Consumers fed up with food costs are ditching big brands https://t.co/ZM5jwR4Obx
"Consumers are griping about economic pressures, but do their actions match their words?" (via @azmoneynews) https://t.co/9dn3kav2Tc
Why Fast Food Has Gotten So Expensive https://t.co/4PrIQune9N
Fast food prices have outpaced inflation since 2014 https://t.co/TX1S3eehsH
Rising costs are forcing some consumers to tighten their belts — especially when it comes to dining out. https://t.co/RaS0orWUlw https://t.co/LIDDAw6G9s
🇺🇸 Fast food feels more expensive than ever before, and people are sick of it. Here's why. https://t.co/bEBNz0U2TY
"Restaurant chains and some food manufacturers are reporting sliding sales or slowing growth that they attribute to consumers’ inability—or refusal—to pay prices that are in some cases a third higher than prepandemic times." https://t.co/vHRGrneIur https://t.co/Q4ZJG94XFQ
MyPOV: thanks to inflation, shrinkflation, and $20 min wages in CA, it sucks. “I’m done.” Consumers, fed up w rising prices at restaurants and supermarkets, pull back from Chips Ahoy cookies, Starbucks coffee and other big food brands. https://t.co/TTkMfkNNj2 via @WSJ
MyPOV: thanks to inflation, shrinkflation, breaking brand promises to consumers, and now $20/hour minimum wages in CA. “I’m done.” Consumers, fed up with rising prices at restaurants and supermarkets, pull back from Chips Ahoy cookies, Starbucks coffee and other big food…
“I’m done.” Consumers, fed up with rising prices at restaurants and supermarkets, pull back from Chips Ahoy cookies, Starbucks coffee and other big food brands. https://t.co/FiKOPd0u4G
Why fast-food price increases have surpassed overall inflation $MCD $JACK $CMG $YUM #retail https://t.co/u9kzmAByeE