Despite easing inflation across food and beverage categories and channels, elevated prices continue to affect fast food chains, reports CBS News. These chains increase menu prices at a rate that outpaces grocery stores.
When it comes to eating out, menu prices at restaurants and other foodservice companies increased 5.4 percent in October, compared to the year before, according to U.S. Bureau of Labor Statistics data. This value is more than double grocery inflation. When focusing on fast food restaurants, limited-service restaurant prices are up 6.2 percent over the past year, and full-service restaurants are up 4.3 percent over the same period.
Fast food chains have been dealing with the fallout. McDonald’s acknowledged its recent price increases during an earnings call last month, which was not well received by the public.
"Our average pricing level in the U.S. business for the full year will be just over 10 percent," Ian Borden, McDonald's CFO stated, adding that the size of the increases started to decline in the third quarter. This has caused low-income customers to look elsewhere at mealtimes.
“We’re seeing traffic in the quarter was down,” said McDonald’s CEO Chris Kempczinski. Full Story
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