The advantage of fast food is that you can eat it quickly at low prices. But as prices rose, the prices of fast food also rose. Not many people are looking for it anymore.
Large U.S. fast food chains are cutting prices one after another. It is a desperate measure as sales have fallen as customer demand has decreased due to inflation and other effects. Following McDonald’s, Wendy’s, and Papa’s, Starbucks has also entered the competition.
As inflation has soared in recent years, industry-wide price increases have reduced low-income Americans’ desire for fast food, according to the survey.
A January poll by consulting firm Revenue Management Solutions found that about 25% of people earning less than $50,000 a year cut related consumption, citing rising fast food costs.
In a related development, Starbucks CEO Laxman Narasimhan acknowledged the drop in sales and said, “The current economic situation is making it more difficult for many customers to spend their money and where to spend their money.” On the 11th (local time), the company launched a new “pairing menu” that offers drinks and breakfast at a discounted price. Of the two options, you can order coffee or tea with a croissant with butter for $5 and eat it. Additional costs are incurred when adjusting or adding to the menu. Other breakfast sandwiches and drinks are available for $6 otherwise. The launch of the pairing menu was announced shortly after the company reported lower-than-expected quarterly earnings and sales.
McDonald’s, which was the first to announce its $5 menu last month, will hold a $5 set promotion for about a month starting June 25. For a limited period of time, customers can have a portion of McChicken or McDouble Sandwich, four pieces of chicken McNugget, fries, and a drink for $5. The move comes as fast food prices soar and pressure mounts to cut consumer prices. For example, the price of the McDonald’s quarter powder and cheese menu has now risen to $11.99 from an average of $5.30 a decade ago. Also, according to a recent survey by FinanceBuzz, the average price of McDouble has jumped from $1.19 in 2014 to $3.19 now. MacChicken sandwiches have also increased 199 percent since 2014, and are now on sale for about $3.
A week after McDonald’s announcement, rival Burger King also launched a $5 meal promotion. It countered McDonald’s by allowing customers to choose between three sandwiches: chicken nuggets, French fries, and beverages. According to the industry, Burger King’s promotion will be conducted on a trial basis ahead of McDonald’s.
At the end of last month, Wendy’s announced a new breakfast combo of potato and egg sandwiches for $3. This is in response to discounts on competitors such as McDonald’s and Burger King. As a result, Wendy’s customers can purchase eggs with bacon or sausage, cheese English muffin sandwiches, and seasoned potatoes for just $3. According to Wendy’s website, breakfast hours begin between 6:30 a.m. and 8 a.m. local time, depending on the store. Breakfast ends at 10:30 a.m. at the latest.
Chicken chain Popeyes Lousisiana Kitchen has reintroduced the Big Box promotion this year. Customers can choose between two signature pieces of fried chicken with bones and a buttermilk biscuit. First launched in 2014, the promotion was a huge hit. It cost $5 at the time. It was $6 when it relaunched in 2022, and this year it’s on offer for $6.99. In addition, the Buffalo Wild Wing is offering unlimited boneless wings and fries for $19.99. The promotion is open to diners every Monday and Wednesday for a limited period of time.
Prices have risen, but it would be nice if restaurants that ordinary people can eat at low prices were maintained.
SALLY LEE
US ASIA JOURNAL
