Bloomberg reports that a new study from menu researcher Datassential suggests that fast food not sold on chains’ value menus is actually getting more expensive.
According to the story, the study says that “median fast-food hamburger prices have jumped 54 percent over the last decade to about $6.95 … Chicken sandwiches are up 27 percent. Both surpass overall U.S. price inflation during that same time.”
Experts seem to believe that they have to increase prices in order to compensate for not just higher ingredient costs, but also for the higher wages and benefits that they have to pay these days in order to attract employees. While these chains are being aggressive about their value menus - largely because of a decline in fast food consumption connected to, go figure, an increase in at-home cooking - they then are increasing prices on other items that people might want to order once they’ve been lured through the doors.
According to the story, the study says that “median fast-food hamburger prices have jumped 54 percent over the last decade to about $6.95 … Chicken sandwiches are up 27 percent. Both surpass overall U.S. price inflation during that same time.”
Experts seem to believe that they have to increase prices in order to compensate for not just higher ingredient costs, but also for the higher wages and benefits that they have to pay these days in order to attract employees. While these chains are being aggressive about their value menus - largely because of a decline in fast food consumption connected to, go figure, an increase in at-home cooking - they then are increasing prices on other items that people might want to order once they’ve been lured through the doors.
- KC's View:
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For supermarkets that are selling food for at-home preparation, this is called an opportunity … because it points to where fast food joints, competing for share of stomach, seem to be vulnerable.
I wonder if it makes sense for grocers to do a better job in communicating their own versions of value menus, marketing directly against fast food chains, emphasizing convenience, speed, variety, value and even health … and focus on a limited “menu” within this segment.
