Fast-food chains in the United States are facing a growing value crisis as customers increasingly feel that quick meals are no longer affordable. With food prices continuing to rise, brands that once symbolised cheap and convenient dining are now being forced to rethink their pricing strategies.
According to data from the US Bureau of Labor Statistics, prices for food eaten outside the home have risen by 27.2 per cent since June 2019. This steady increase has led to declining restaurant footfall and cautious spending, especially among lower-income consumers.
When fast food stops feeling affordable
Many customers now report that ordering two combo meals at major fast-food outlets can cost over $20 (around ₹1,600), a psychological barrier that has changed how people view quick-service restaurants. Once seen as a budget-friendly option for families, fast food is increasingly perceived as expensive for what it offers.
McDonald’s admits value gap
McDonald’s CEO Chris Kempczinski acknowledged the issue during a recent earnings call, admitting that the brand’s value perception had weakened. In response, the company rolled out $5 meal deals and reintroduced popular low-cost items like the Snack Wrap, priced at $2.99, to regain customer trust.
Kempczinski also highlighted a widening gap in consumer behaviour, noting that fast-food visits from lower-income groups have declined sharply, while higher-income customers continue to dine out more frequently.
Domino’s doubles down on deals
Domino’s has taken a more aggressive approach. Its “Best Deal Ever” promotion offers any pizza with any toppings for $9.99, covering multiple crust options and customisations. CEO Russell Weiner said the deal has helped the brand grow across all income groups, including budget-conscious customers.
Value wars set to intensify
As inflation reshapes eating habits, fast-food chains are realising that discounts are no longer optional. With customers scrutinising every rupee and dollar spent, value-driven menus may now determine which brands survive the slowdown and which lose relevance.
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