{"id":11124,"date":"2024-05-22T21:20:48","date_gmt":"2024-05-22T21:20:48","guid":{"rendered":"https:\/\/topat10.com\/?p=11124"},"modified":"2024-05-22T21:20:48","modified_gmt":"2024-05-22T21:20:48","slug":"the-new-quiet-luxury-is-burgers-and-fries-over-60-of-americans-are-buying-less-fast-food-because-its-just-too-expensive-survey-finds","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=11124","title":{"rendered":"The new quiet luxury is burgers and fries: Over 60% of Americans are buying less fast food because it\u2019s just too expensive, survey finds"},"content":{"rendered":"\n

Move over, Hermes and Miu Miu\u2014the newest luxury purse flying under the radar is a crinkled paper bag filled with burgers and greasy fries. The vast majority of Americans now find fast food way too expensive, dubbing it a \u201cluxury,\u201d a new report found.<\/p>\n

\n

Of 2,000 American adults, 78% considered fast food a luxury because of its price tag, loan marketplace LendingTree found in a survey<\/a> released Monday, using data from QuestionPro commissioned by ValuePenguin. Half of respondents said their own stretched financial situation made fast food feel like a luxury, and more than six in 10 said they had cut down on fast food because of rising prices.<\/p>\n

\u201cFast food often isn\u2019t this quick, cheap option anymore,\u201d LendingTree chief credit analyst Matt Schulz told Fortune<\/em> over email. \u201cPeople are having sticker shock at the drive-through, causing them to rethink how often they eat fast food.\u201d<\/p>\n

Respondents participated in the survey in early April\u2014the same time California\u2019s $20 minimum wage law<\/a> for fast-food workers went into effect, causing chains like Chipotle<\/a> to threaten 6%-7% increases in menu price. Even before the minimum wage law was enacted, consumers revolted against McDonald\u2019s $18 Big Mac meal<\/a> and blasted Wendy\u2019s for its introduction of \u201cdynamic pricing<\/a>\u201d in February, using AI to change menu item costs depending on the level of traffic during certain times of day. The burger chain backtracked the day after the announcement, saying it had no plans to raise prices, only provide discounts.<\/p>\n

Indeed, pinched consumers are most concerned about surge pricing, with 72% of those surveyed saying they would dine during off-hours if it meant cheaper menu items. Over half of respondents said they now cook at home if they\u2019re looking for a quick, cheap meal.<\/p>\n

Stephen Zagor, food and restaurant consultant and adjunct assistant professor of business at the Columbia Business School, told Fortune <\/em>that bad attitudes toward fast-food companies are an extension of the mentality so many have about the economy. As fast-food prices continue to rise<\/a> even as inflation cools, consumer sentiment is dipping: In May, it reached its lowest point<\/a> in six months.<\/p>\n

\u201cWe\u2019re in this inflationary mental cycle as much as we are an inflationary reality cycle,\u201d Zagor said.<\/p>\n

\u2018They hear the customers\u2019 pain\u2019<\/strong><\/h2>\n

But there\u2019s good news on the horizon for customers feeling dejected by the state of fast-food prices, Zagor said. Burger chains are feeling pressure to make changes.<\/p>\n

\u201cThey hear the customers\u2019 pain, and they\u2019re trying to be responsive\u2014as they well should be,\u201d he said.<\/p>\n

McDonald\u2019s announced last week<\/a> its plans to launch a $5 meal deal of a burger or chicken sandwich, fries, a four-piece nugget, and a drink. Wendy\u2019s responded similarly, rolling out a $3<\/a> breakfast deal with breakfast potatoes and a choice of bacon or sausage, egg, and cheese English muffin.<\/p>\n

The changes came after fast-food chains noticed sales dips driven by choosy customers.<\/p>\n

\u201cThe consumer is certainly being very discriminating in how they spend their dollar,\u201d McDonald\u2019s CEO Chris Kempczinski said during a call<\/a> with investors this month. \u201cIt may be more pronounced with lower-income consumers, but it\u2019s important to recognize that all income cohorts are seeking value.\u201d<\/p>\n

While McDonald\u2019s is only promising its $5 meal deal for a month\u2014with franchisees asking<\/a> the company to invest in the operation\u2014additional promotions are likely to stick around, though likely in different forms, such as app-exclusive deals or cheap menu add-ons for digital orders, Zagor said.<\/p>\n

Fast-food companies are under pressure to keep their customers happy, even if it is initially a bigger lift for investors and the bottom line, he argued. A \u201crelationship-based\u201d business, the restaurant industry still has to promise its diners a return on the dining experience, even if it\u2019s just a quick drive-thru transaction. With over 70 million customers<\/a> daily, chains like McDonald\u2019s are a cornerstone of people\u2019s lives, Zagor said, and they are under obligation to stay that way.<\/p>\n

\u201cThe truth of the matter is, we love McDonald\u2019s. It\u2019s an American brand. It\u2019s who we are\u2014good or bad, hate it or love it, think it\u2019s healthy or unhealthy. It\u2019s who we are.\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Move over, Hermes and Miu Miu\u2014the newest luxury purse flying under the radar is a crinkled paper bag filled with burgers and greasy fries. The vast majority of Americans now find fast food way too expensive, dubbing it a \u201cluxury,\u201d a new report found. Of 2,000 American adults, 78% considered fast food a luxury because […]<\/p>\n","protected":false},"author":440,"featured_media":11125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-11124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nThe new quiet luxury is burgers and fries: Over 60% of Americans are buying less fast food because it\u2019s just too expensive, survey finds | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"\u201cWe're in this inflationary mental cycle as much as we are an inflationary reality cycle,\u201d Columbia professor Stephen Zagor tells Fortune.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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