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Millions of Americans are fed up with fast-food prices
Prices at America's biggest fast-food chains have soared above the rate of inflation in the last five years as firms come under fire for 'greedflation.'
Customers are now voting with their wallets causing traffic to chains to drop 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.
It means big chains like McDonald's, Wendy's, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer burgers, pizzas and burritos.
It comes as social media users are increasingly complaining about high fast-food prices, with a McDonald's in Connecticut recently lambasted for selling a Big Mac meal for $17.59.
Analysis by FinanceBuzz reveals how much popular fast food products have gone up in the past ten years
Figures from the US Labor Department show fast-food prices are 33 percent more expensive than they were in 2019. By comparison, grocery costs are up just 26 percent while the overall Consumer Price Index (CPI) rose 19 percent in that time.
Chains such as McDonald's, KFC and Wendy's have been repeatedly accused of 'greedflation' - the practice of hiking prices more than is necessary while blaming inflation.
According to analysis by FinanceBuzz, McDonald's menu prices have doubled since 2014.
Similarly, costs at Popeyes are up 86 percent in the last decade while Taco Bell has seen prices increase 81 percent.
Starbucks and Subway increased their prices by 39 percent each in the same period. FinanceBuzz looked at the average cost of 10 different menu items per restaurant.
But the approach appears to be backfiring. McDonald's CEO Chris Kempczinski commented in an earnings call last week: 'The consumer is certainly being very discriminating in how they spend their dollar.
'I think it's important to recognize that all income cohorts are seeking value.'
Starbucks has also seen traffic drop by around 7 percent in the three months to March 31. It marks the brand's steepest quarterly decline since 2010.
Some chains have bucked the trend by pointedly keeping prices the same. For example, Domino's has kept its national mix-and-match deal priced at $6.99 since 2022.
CEO Russell Weiner recently explained in an interview: 'Customers just don't want surprises.'
Americans are turning their backs on fast food as some of the country's largest franchises continue to hike the prices of what were once affordable meals
McDonald's CEO Chris Kempczinski (pictured) commented in an earnings call last week: 'I think it's important to recognize that all income cohorts are seeking value'
But in California, the issue has been exacerbated by a new $20-per-hour minimum wage for fast-food workers.
The legislation was brought in by Governor Gavin Newsom in response to workers striking in 2022.
It led bosses at McDonald's, Wingstop, Jack in the Box and Chipotle to announce they would be passing on higher labor costs to customers in California via higher prices.