Customers are balking at the price increases found on menus at their favorite fast-casual chains across the country, according to The New York Times.
Last year, the price of menu items at fast-food restaurants rose 8 percent, its biggest jump in more than 20 years, according to government data, with portion sizes shrinking in some cases.
At a Chipotle in Costa Mesa, California, the price of a chicken burrito which was $7.25 less than a year ago, now costs $7.95, according to price data collected by analysts. In Ann Arbor, Michigan, a ShackBurger at Shake Shack used to cost $5.69; and now costs $6.09. And in Oklahoma City, an order of 50 bone-in wings from Wingstop that cost $41.99 early last year is now $47.49, a 13 percent increase, according to the article.
“In recent years, most fast-food restaurants had, maybe, raised prices in the low single digits each year,” said Matthew Goodman, an analyst at M Science, an alternative data research and analytics firm. “What we’ve seen over the last six-plus months are restaurants being aggressive in pushing through prices.”
It’s tricky business. Chains need to walk a fine line between raising prices enough to cover expenses while not scaring away customers. Full Story
Related: Price Increases Change Customer Behavior; How to Raise Prices in Uncertain Times.