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?
If inflation was really just 8 or 9% it wouldn’t be that big a deal. But everyone knows the price of fast food and other things has practically doubled. And i’m not spending that much on garbage fast food.
I would eat from the bargain bin sushi at 7-11 with all the ice melted at 3 in the morning on easter sunday before I would ever eat at McDonlards or Burger Thing
“and meats, poultry, fish, and eggs (up 14.2%), reports Forbes. “
McDonalds is leading because they have the least of these items between the buns.
Trivia question, does anyone recall a street vendor near the Pentagon years ago, maybe still there, that had similar seasoned fries. That was my favorite anytime I visited the Pentagon or nearby.
I’m with you! My hubby’s burgers are my favorites! Can’t be beat!
Every time I think of eating out, I stop. I can make a four egg omelette for a dollar.
US food suppliers and chain restaurants warn prices will keep climbing
https://nypost.com/2022/06/12/food-suppliers-restaurants-chains-signal-prices-only-going-to-rise/
Pretty soon, they’ll have so few customers they’ll need to charge $10 for a flimsy burger.
Foot traffic? My nearest McDonalds now seems to be mostly drive-through. Before Covid its lobby always stayed open until midnight, and was busy. Now the lobby has no set hours, and often closes before 9PM. The 24 hour drive-through always appears to have customers.
The DoorDash economy.
Burger Kings food is not so superior that I can put their politics aside. Too many other options.
“Last time I went to McDonalds about 8 months ago, they wanted about 22 bucks for 2 burgers, 2 fries, and 2 cokes..”
???? I just put that order into the McD app to look at the price (medium fries and drinks). $12. Much cheaper if you order as meals not individually.
$10.00 burgers
$5.00 shakes
$5.00 fries
Yes, VERY EXPENSIVE. We didn’t get the shakes, so saved a couple of dollars.
“...Wendy’s and Burger King are seeing more struggles with foot traffic...”
Perhaps if they waited on customers? Last time I went into a Burger King, I hung around the counter for several minutes without seeing anyone up front, so I left, and I won’t be back. Can’t afford fast food now anyway.
US food suppliers and chain restaurants warn prices will keep climbing
https://nypost.com/2022/06/12/food-suppliers-restaurants-chains-signal-prices-only-going-to-rise/
Pretty soon, they’ll have so few customers they’ll need to charge $10 for a flimsy burger.
Five guys is ridiculously overpriced!
McPuke’s...if I wanted to eat cardboard, I’d just go to the dump.
Mine is deer burgers. Shot on my land and cleaned and processed by us. It is delicious. We do throw an occasional slab of salmon on the grill instead and it is also delicious.
At about 4.25pm today the McDonalds on the north Conduit in Queens was doing huge business at the drive in window. There were cars snaking around the building, across the parking lot out and down the north conduit backing up the lanes. These people were not only laying out the shekels for McDonalds, they were burning gas to do it. Things don’t seem to have hit any crisis yet.
McDonald’s will have to reduce the size of their beef patties by 50% to keep their prices the same.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.