Posted on 06/15/2022 2:12:54 PM PDT by nickcarraway
Here's how America's biggest fast-food chains stack up with customers.
Just how intense is inflation right now? We haven't seen price jumps like these in 40 years, according to numbers from the U.S. Bureau of Labor Statistics. Some of the largest increases over the past 12 months include electricity (up 12%), utility gas service (up 30.2%), and meats, poultry, fish, and eggs (up 14.2%), reports Forbes.
When it comes to buying these necessities, customers don't have much choice. But what about discretionary spending on, say, fast food? How are some of the biggest burger chains faring amid these challenges?
According to data company Placer.ai, of America's three largest burger chains, McDonald's is leading the pack with the best performance in relation to 2019. Compared to the same time period of that year, visits to the chain's locations were up by 6.3% in April and 3.8% in May.
The chain has also seen more foot traffic every single month this year compared to 2021. It looks as though all the changes McDonald's had made in 2021—from raising the bar on celeb collaborations to rolling out its biggest loyalty program nationwide—are paying off.
On the flipside, Wendy's and Burger King are seeing more struggles with foot traffic in the current economic climate. While year-over-year visits were up at both chains, the second- and third-largest burger franchises in America are currently lagging behind their 2019 traffic. Compared to May of 2019, traffic this May dropped by 12.1% and 12.4% respectively.
Could higher prices be at play? Wendy's raised its menu prices by 6% last year, while the chain confirmed it plans to increase them by another 5% in 2022.
"We did talk about taking 5%-plus pricing," said president and CEO Todd Penegor in an interview with CNN Business. "We've got to find that point where we can balance passing on some price but still being of relative value to the consumer."
Over at Burger King's largest franchisee, Carrols Restaurant Group, CEO Paolo Pena is facing reality as well. "Even if inflation moderates in the back half of this year, we're likely to feel its impact on our cost structure for some time," Pena said, according to Restaurant Business. "To deal with it, we are going to need to adapt and evolve as never before. And to do that, we are going to need to look at all aspects of our operations with fresh eyes."
The good news, reports Placer.ai, is that regional burger chains In-N-Out Burger, Whataburger, Sonic Drive-In, and White Castle are seeing consistent growth in visits this year compared to 2019. The question is: What's their secret sauce?
I haven’t gone to a Macdonalds or Burger King in years. If I want a burger, I’ll cook my own.
I’d buy the frozen burgers before I eat at McDonald’s.
I use Burger King coupons, which make it tolerable; McDonalds when I have little choice as it is $1.99 for a simple cheeseburger. But, seriously, have you been to Five Guys lately? My ex and I had lunch at a local Five Guys a month or so ago and with the small burgers, fries, and drinks, it was something like $35! Definitely not worth it and I’ll very likely not be going back.
Wendy’s locked people out of their restaurant . . . what did they expect would happen?
This is a no brainer...If they can barely afford gas, they won’t be going to any McWhopper slop joints.
I bought some nice frozen burgers at Costco and they were on sale
I see the fast-food haters beat me on the thread! I actually like Burger King burgers, prefer McDonald’s fries. Five Guys is good but the price has traumatized me. I don’t like Red Robin, Carls Jr, Jack In The Box (always reminded of them serving horsemeat in the 70s or 80s), etc. Of course, I prefer cooking my own burgers but typically, if I’m going to light up the grill, it will be to cook a steak or salmon or halibut.
Nooooo! Fast food hamburgers are one of the 4 basic food groups.
That and your food sucks.
Last time I went to McDonalds about 8 months ago, they wanted about 22 bucks for 2 burgers, 2 fries, and 2 cokes...I swear, when I was told the total in the drive though, I thought they were joking.
I can’t image what it is now.
I know one thing, a ton of business are going to start getting jack hammered as their products will be left on the shelves. Bet the rent.
Btw, these over priced fast food slop joints had to know this was coming...
Here in the Panhandle, we’ve got local outfits that do a decent job. Eff these wokester fast food chains.
Eat this not that. The name pisses me off. I have enough of that from people who are in daily life so I don’t need a web site. Eat bugs, not meat. Eat plants not animals. Eat oatmeal not captain crunch. Shove this and that.
I actually liked the Five Guys near my office (7 years ago). But now I must agree with you. $15 for small burger and soggy fries, none of which are not particularly tasty or filling. No thanks.
I’ll make my own for a fraction of the cost.
the prices there are very inflated as well....its just too much to pay for that food so we don't eat out nearly as much.
For historical reference: In 1962 my older sister and boyfriend (married in 1964 and still married) took me with them to the drive-in theater(Mom’s idea). On the way we stopped a Steak-N- Shake. I got a burger & fries, my Sis the same, & Mike got a Cheese-burger,fries & chilli. Then when to the drive-in all on $5.00.
It's good. But it's worth $10. Hard to justify it for $15. At that price, I expect service similar to what you see at Ruth's Chris Steak House.
Hit a Taco Bell for the first time in a couple of years. Tacos were $2 each.
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