Kevin Roberts remembers when he could get a bacon cheeseburger, fries and a drink from Five Guys for $10. But that was years ago. When the Virginia high school teacher recently visited the fast-food chain, the food alone without a beverage cost double that amount.
Roberts, 38, now only gets fast food “as a rare treat,” he told CBS MoneyWatch. “Nothing has made me cook at home more than fast-food prices.”
Roberts is hardly alone. Many consumers are expressing frustration at the surge in fast-food prices, which are starting to scare off budget-conscious customers.
A January poll by consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, pointing to cost as a concern.
That’s pure greed at this point…Jimmy John’s is still well in an affordable range. As a rule, I tend to avoid buying food from places with surge pricing as fast food is supposed to be affordable! It’s not fine dining and as a result should be priced appropriately; they’ve forgotten their role in the food space and thus their business will live or die based on future choices.
Fast food was affordable because they paid sweat shop wages. That’s not the case anymore. In any event… I would argue with the “supposed to be” affordable comment. Just because it was doesn’t mean it’s supposed to be. As far as I’m concerned this can only be good for the health of the public- when fast food prices are at least comparable in price to healthy options.
Edit: lol at all the people comparing the US to Nordic countries. Apparently they think US franchise owners are the same as those in countries where making a profit is akin to a sin. Hahaha. They thought by raising wages, owners would cut into their own bottom lines. “Bruh, in countries where mcmansions don’t happen, this isn’t a problem.” Net profits have not gone up at all compared with the rest of the economy.
And apparently people really like their cheap big macs. Eat something else? And I’m sure many of them were arguing for livable wages over the past five years (I was). This outrage is hilarious.
Edit 2: Apparently people don’t know what “gross” means. If my costs go up, then my prices go up… and my gross returns go up to cover both the costs (expenses) and net proceeds. I’m at a complete loss at the nature of these arguments.
McDonald’s NET growth from end of 2009 to 2023 was 4.56 B to 8.47B. A 186% increase. This is roughly a 5% annualized increase. I intentionally sought pre/post COVID numbers for a reason.
In this same time the US GDP grew from 14.47B to 27.35B. Almost the exact same rate of growth at a 189% increase.
Net profits are what you’re concerned with in your arguments when accounting for greed… not gross. If anything, I’ve shown McDonalds is making less money today. But you know, feels are more important than facts.
I won’t believe paying fast workers a liveable wage necessitates the rise in cost unless there’s hard data behind that. Sure, it’s likely a necessity to continue profit growth quarter after quarter, but I’d wager they’re able to continue making massive profits even with having to pay their staff like they’re humans.
I agree with you about fast food though. We’ll be better off without them. Fuck em.
Hey, I can edit too: You never said gross prior to your edit, you were talking about consumer costs. I’m still not yet a believer, but I Iove you :)
Since labor is a cost. You just defeated your argument.
If labor goes up, prices will go up. It’s that simple. Fast food is only profitable at high volumes. Their profit margin is only around 10% which is low.