admin Eating out is getting more expensive, pushing food fans to change where they eat. Prices for quick meals and snacks jumped 28%, and sit-down places went up 24% from 2019 to 2023. This is more than the overall 19% price rise.
Jim Salera, an expert, points to high costs of goods but sees them easing. Yet, pay for workers keeps going up, hitting hard. In places like California, with a $20 an hour minimum wage, big food spots like Wingstop and Chipotle have to make customers pay more. This is showing in the money reports of big companies.
Yum Brands, which owns KFC, Taco Bell, and Pizza Hut, had a tough start in 2024. McDonald’s is also finding it hard, blaming it on people being careful with money due to the tough money situation.
This moment is key for fast-food places, as they must change smartly to stay strong in a tough market. With costs going up and what customers want shifting, these businesses need to find a balance between making money and keeping customers happy. High costs for staff mean that these places have to come up with new ways to keep growing and stay important.
Looking closely at what causes these trends shows we need to think about how these companies work and what customers do. From how they get their food to how they set prices, every part of the fast-food world is being looked at. Also, as customers’ likes change in unsure economic times, being able to change quickly is key to not failing in this tight race.
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