Like Subway’s $5 footlong, reasonably priced fast-food could quickly be a factor of the previous.
The typical worth of fast-food in bigger U.S. cities is now within the double digits, with the standard meal costing $11.56, based on a brand new report from LendingTree. Costs are highest in San Francisco, the place the typical fast-food meal prices $13.88, adopted by Seattle at $13.48. Columbus, Ohio, has essentially the most reasonably priced fast-food, however meals nonetheless got here to $10.01 on common.
Quick-food has lengthy been thought of a extra economical, if no more healthful, solution to eat. Whether or not it’s Wendy’s “Biggie Bag” or McDonald’s “McValue” menu, most main fast-food chains supply some type of meal deal for below $10. However as prices rise and inflation pinches Individuals’ wallets, the price of burgers, fries and rooster nuggets could also be slipping out of attain for a lot of shoppers.
A FinanceBuzz evaluation discovered final yr that common quick meals costs have risen between 39% and 100% over the past decade. For instance, a McDouble sandwich that price $1.19 in 2014 would simply price greater than $3 in 2024, the private finance website discovered.
Thirty-nine % of Individuals anticipate to spend much less on eating given heightened uncertainty concerning the financial system, based on a current Bankrate survey.
In keeping with McDonald’s most up-to-date earnings report, the corporate skilled a 3.6% drop in gross sales the primary quarter, with executives citing tariffs as the rationale behind the slower foot site visitors.
“Heightened anxiety” concerning the financial system is weighing on lower- and middle-income Individuals, McDonald’s CEO Chris Kempczinski stated in a Might 1 earnings name.
Among the many shoppers who could also be combating the price of fast-food — the low-income staff who make it. The typical hourly wage for fast-food staff is $15.07, based on LendingTree. Which means it takes staff greater than two occasions longer than somebody on a mean wage within the U.S. to earn sufficient to afford a typical quick meals meal, whereas factoring in the price of different residing bills.
“No one has ever expected to get rich off of fast-food wages, but the fact that these workers can’t even expect a livable wage is troubling,” LendingTree chief shopper finance analyst Matt Schulz stated within the report.
LendingTree discovered {that a} fast-food employee who bought three meals a day from their employer, seven days every week, would find yourself spending 40% of their wage on common — leaving them with simply 60% of their paycheck to dwell on.
