Fast food is now ‘a luxury,’ say 78% of Americans, as McDonald’s and Burger King launch deals for cash-strapped customers

AMERICAN consumers have been facing inflated food costs for some time.

Last month, the Bureau of Labor Statistics confirmed that food prices increased by about 0.3% from March.

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The amount of money needed to eat out is also high, with a similar 0.3% month-over-month increase and a 4% jump in the Consumer Price Index (CPI) since April 2023.

Around 78% of customers say it is now “a luxury” to get fast food given inflation, according to a survey conducted by Yahoo! Finance.

At least 62% also said they will eat out less in 2024 because of costs.

Several prominent fast food chains have been criticized for their prices after customers became fed up.

McDonald’s has been hit in several cases since late last year, with an $18 Big Mac meal and a $25 McNugget meal going viral.

Some customers also claimed that menu items were getting smaller and that the cost of the brand’s famous hash browns had increased by several dollars.

CEO Chris Kempczinski promised “menu innovation” in 2024 for diners and a focus on value and lower prices for diners.

This includes a $5 meal, launching on June 25th.

Supposedly, it will feature one of three main entrée options, including a four-piece McChicken, McDouble, or McNugget, along with fries and a drink for one low price.

McDonald’s has not yet officially confirmed the $5 meal deal, but is expected to do so soon, for CBS MoneyWatch.

It also continues to change and update its $1 $2 $3 dollar menu, and other competitors are apparently following suit to offer value to customers, including Burger King.

INCREASES COMPETITION

The chain’s offering will apparently be in direct competition with McDonald’s in the form of a $5 Your Way meal.

Served with sandwich, fries, chicken nuggets and drink.

Jack in the Box is doing the same.

CPI and inflation explained

The Consumer Price Index is how the federal government measures inflation.

Every month, the Bureau of Labor Statistics shares its CPI numbers with breakdowns of which items have variable prices.

The CPI shows how much prices have risen or fallen over the previous 12 months.

The calculation process is complex, but it measures price changes for urban consumers, those who live or work in an American metropolitan area.

Although it does not cover everyone, it measures prices for around 90% of the population.

Customers can order from their new Jack’s Munchies Under $4 menu starting June 3, with at least 11 options.

Arby’s is also starting to compete in what appears to be a mad race to attract fans at low prices.

It has cut its burger costs by at least 50% to attract customers.

Wendy’s is also giving away penny burgers as part of an exclusive promotion.

Other chains like Chipotle have been criticized for reasons other than price point.

The brand was accused of filling more bowls for fans during filming.

Some customers also cited their serving size guide.