Fast food inflation:
It’s no secret that prices just keep going up. From home prices to personal goods, the cost of living in the U.S. has increased by 22% since 2019, leaving consumers looking for ways to deal with the rising costs.
As Americans try to find better ways to budget, one traditionally affordable option, fast food, is becoming less and less of a money-saving choice. In fact, fast food prices have been increasing faster than the national inflation rate in some cases, leading to criticism online and on social media.
Have fast food prices really changed so much? And if they have, by how much? FinanceBuzz is always searching for money-saving strategies and wanted to understand the true cost of a trip to the drive-thru for consumers. To find out, FinanceBuzz gathered pricing data from twelve popular fast food restaurants over the past decade and analyzed how much prices have risen compared to the national inflation rate.
How does fast food inflation compare to actual inflation?
According to the Bureau of Labor Statistics, the cost of goods in the U.S. has increased by 31% since 2014, which means that $100 in 2014 dollars is equivalent to $131 in 2024 dollars. A significant portion of this change has occurred in the last 5 years, with inflation rising by 22% since 2019.
So how do the average menu price increases at popular fast food chains compare to these rates?
The restaurants evaluated by FinanceBuzz saw an average price increase of 60% between 2014 and 2024. This means that they have raised prices at a rate almost double the national inflation rate.
Five different restaurants — McDonald’s, Popeyes, Taco Bell, Chipotle, and Jimmy John’s — raised their prices by more than double the national inflation rate. McDonald’s raised prices to the extent that their average menu prices increased by more than three times the national rate of inflation.
Apart from McDonald’s, there has been a more than 75% price increase at Popeyes, Taco Bell, and Chipotle over the last 10 years. Subway and Starbucks, on the other hand, maintained the most stable prices of any major chain, but still exceeded national inflation. Here are some noteworthy examples.
Gold-tier prices at the Golden Arches: McDonald’s prices have risen the most
The biggest culprit for significant price increases is McDonald’s — a chain that recently gained negative attention. An $18 Big Mac combo received a lot of online scrutiny, leading the McDonald’s CEO to promise affordability during a recent earnings call. According to the data, prices at McDonald’s have doubled since 2014, with an average price increase of 100%.
Overall, this rate is more than triple the national inflation rate during the same period. For example, the McChicken sandwich, once a staple of the $1 menu in 2014, now costs $3 at some locations, representing a 200% increase.
Other previously value menu items, such as the McDouble and a basic order of medium fries, experienced significant price increases across the McDonald’s menu.
What Rising Fast Food Prices Mean for Consumers
Although gradual changes in fast food prices may not appear to have a significant impact on consumers’ wallets, they serve as a representation of the current financial situation in the U.S. — where your dollar doesn’t stretch as far as it used to, and American families need to find ways to make ends meet.
Another area where many Americans are feeling the financial strain is with auto insurance. With premiums increasing by more than 20% in the past year, many are searching for affordable car insurance options. Similar to fast food, the rise in premiums tends to affect lower-income earners the most.
Some individuals are turning to credit cards to bridge the gap. After several years of decreasing balances, credit card debt has reached an all-time high. Cards offering balance transfer incentives and 0% intro APR offers especially appeal to those trying to manage their monthly budget or seeking debt relief.
For others, increasing their current income is the only way to cope; hence, they are exploring ways to earn extra income on weekends or secure higher-paying jobs. With no simple solution in sight, and no relief from inflation expected, it is likely to remain a major concern for Americans heading into the upcoming presidential election. Recent FinanceBuzz research revealed that inflation is currently the top financial issue among American voters.
Other notable fast-flation examples
Taco Bell
- Average price increase: 81%
- Notable price hikes: A Doritos Locos Taco, priced at an average of $1.39 in 2014, now costs $2.59 in 2024 (+86%). Similarly, a Cheesy Gordita Crunch doubled in price from $2.49 in 2014 to $4.99 today. The Beefy 5-Layer Burrito increased in price from $1.59 in 2014 to $3.69 today, marking a 132% increase.
Chipotle
- Average price increase: 75%
- Notable price hikes: In 2014, entrees such as burritos, bowls, or tacos cost less than $6.75 on average. Today, these meals all cost $10.50 or more. Additionally, guacamole, which has always been an extra cost, is now 64% more expensive than a decade ago ($1.80 to $2.95 on average).
Starbucks
- Average price increase: 31%
- Notable price hikes: Interestingly, some popular Starbucks menu items have kept pace with inflation, such as their Chai Tea Latte (+30%) and their Mocha Frappuccino (+32%). Moreover, costs for certain items like a Caffè Latte (+22%) and Caramel Macchiato (+17%) have actually risen slower than inflation, making them a better deal now than a decade ago.
Full results and methodology
For a detailed methodology and a chart displaying all the collected data, please refer to the full study.
Simple ways to save on your next fast-food order
- Earn cash back and rewards. Explore the best credit cards for dining to earn cash back or discounts when dining out.
- Download mobile apps. Many fast-food restaurants, such as McDonald’s, offer discounts and promotions exclusively through their mobile apps.
- Stay alert for upcoming deals. McDonald’s is reportedly considering introducing a $5 meal deal to retain customers unhappy with rising prices. Look out for similar initiatives from other fast-food chains.
This story was produced by FinanceBuzz and reviewed and distributed by Stacker Media.
