FoodMaven’s Post

Fast food restaurants are charging 77% more for this breakfast item than they did 5 years ago. (They're charging a LOT more for everything) - Prices for morning menu items have far outpaced the rate of inflation, according to a new study - A newly released study from the personal-finance site FinanceBuzz found that breakfast menu-item prices at 10 of the most popular fast-food chains have increased by 53% since 2019. And in some cases, the spikes are much higher. READ MORE w/Charts: https://lnkd.in/gj7hd9hv

The restaurant industry is forecasted to surpass $1 Trillion in sales for the first time ever this year. If you’re like me and wondering how that’s possible considering the number of restaurants out there dropped from 703,000 in 2019 to just over 631,500 restaurants in 2023…the answer is inflation. According to the National Restaurant Association’s study, these sales were largely driven by increased pricing. Average menu prices peaked at an 8.8% year-over-year increase in March 2023, cooling only slightly in the start or 2024. While major news publications are referring to this statistic as a sign of the industry’s recovery since the pandemic, it’s actually a sign of the deep trouble in the future. What goes up, must come down, and consumers are already getting fed up with current food pricing. https://lnkd.in/eB29szNA #restaurantnews #restuaranttrends #tagex #liquidations #foodindustrynews #foodserviceindustry #foodindustrynews #kitchenquipment #restaurantequipment #commercialkitchenequipment #restaurantauctions #furnitureauctions #furnitureliquidations #equipmentliquidations #equipmentauctions #businessliquiditions #restaurantclosures #cfo #coo #foodindustry #foodindustryequipment #liquidaterestaurant #openrestaurant #expandrestaurant #foodoperations #restaurantclosure #restaurantremodel #restaurantliquidation

WHAT YOU NEED TO KNOW: The Bureau of Labor Statistics reports restaurant menu prices have risen 5.7% over the past year, outpacing the 3.6% increase in grocery prices. This trend could lead more consumers to choose home-cooked meals, impacting restaurant foot traffic. As inflation eases, operators may need to adjust pricing strategies to stay competitive and retain customers. (H/T: Nation's Restaurant News)

Fast-Flation: Fast Food Restaurant Prices Surge, Even as Inflation Wanes Historically, fast food has been considered one of the most budget-friendly options outside of cooking at home. But a steady trickle of fast-flation over the past decade has been eroding that value proposition. In response to growing dissatisfaction among fast foodies, Finance Buzz conducted a study analyzing menu price data across twelve top fast-food chains between 2014 and 2024. Findings revealed that most restaurants raised prices by 60% on average during the time period, and five — McDonald’s, Popeyes, Taco Bell, Chipotle, and Jimmy John’s — did so at more than double the actual inflation rate. The cost of goods has risen 31% since 2014, according to the Bureau of Labor Statistics. Much of this change has happened in the last 5 years — inflation is up 22% since 2019. Noteworthy Pockets of Moderation Chains like Subway have kept price increases in line with inflation over the past ten years. Burger King also received honorable mention, with the average cost for menu items rising by “just” 55% in that same time. - The Food Institute

Great write up on consumers eating out and worth the quick read! If you are not tracking (in real time) your consumers future purchase intent and what is driving it then we need to talk.

Fast-Flation: Fast Food Restaurant Prices Surge, Even as Inflation Wanes Historically, fast food has been considered one of the most budget-friendly options outside of cooking at home. But a steady trickle of fast-flation over the past decade has been eroding that value proposition. In response to growing dissatisfaction among fast foodies, Finance Buzz conducted a study analyzing menu price data across twelve top fast-food chains between 2014 and 2024. Findings revealed that most restaurants raised prices by 60% on average during the time period, and five — McDonald’s, Popeyes, Taco Bell, Chipotle, and Jimmy John’s — did so at more than double the actual inflation rate. The cost of goods has risen 31% since 2014, according to the Bureau of Labor Statistics. Much of this change has happened in the last 5 years — inflation is up 22% since 2019. Noteworthy Pockets of Moderation Chains like Subway have kept price increases in line with inflation over the past ten years. Burger King also received honorable mention, with the average cost for menu items rising by “just” 55% in that same time. - The Food Institute Alexandra Esquivel-Murphy Joseph Esquivel-Murphy Don Ullmann

Here's a great article from Nation's Restaurant News discussing the impact of menu inflation vs. other consumer segments. Not all bad news for restaurant operators, certainly the last couple of quarters were tough the inflation rate showed some deceleration from the previous several periods. Click on the link to learn more...#restauarnts #inflation

Weak restaurant customer traffic is inevitable with inflationary pressure. Curious to see how to bend this curve. Labor reduction and food quality are two. Knowing your customer is key.

Restaurants Combat Inflation with Value Deals In the midst of numerous menu updates and item additions, numbers have come out on several major chains' value offerings and boy are they cooking. 1. Buffalo Wild Wings: Their "Unlimited Boneless Wings" promotion every Monday and Wednesday for $19.99 ran for just over a month and resulted in: 8.1% increase in total YoY visits 45.6% increase in Monday visits 49.3% increase in Wednesday visits 2. Chili's: Introduced the "Big Smasher" burger on their "3 for Me" menu for $10.99, with an option to add a classic margarita for $3.99. This promotion peaked at a 27.5% increase in YoY visits. 3. McDonald's: Launched a $5 value meal (including a McDouble or McChicken, 4-piece McNuggets, small fries, and a small drink), resulting in a 7.1% average increase in YoY visits. 4. Starbucks: Offered a 50% Friday discount for app users throughout May, leading to: 20% peak increase in visits the first week 11% average increase throughout the month While SMBs might not be able to offer such large-scale discounts regularly, these examples demonstrate that customers are highly responsive to value, especially during times of high inflation. Even offering smaller incentives like a free drink, a small side, or a minor discount can make customers feel like their dollar is stretching further. #RestaurantTrends #CustomerValue #InflationStrategies #RestaurantPromotions #CustomerEngagement https://lnkd.in/dA7ycR8Q

As fast food prices surge, are sit-down chain restaurants becoming the better value? With the price gap narrowing, you might find yourself getting more bang for your buck at places like Applebee's or Chili's compared to fast food joints. Personally, I prefer the sit-down experience, and it's fascinating to see arguably better products becoming more competitive. What about you? Would you choose a quick casual restaurant over a fast food chain for just a couple of dollars more? Share your thoughts! #RestaurantTrends #FoodIndustry #ValueForMoney #ConsumerChoices