Seriously, Why Has Fast Food Gotten So Expensive?

Fast food is supposed to be the easy and cheap option for grabbing dinner, but that wasn't quite the case in 2024. Prices outpaced the 2.7% rate of inflation, and left customers anxious. The U.S. Bureau of Labor Statistics reported that the cost of eating away from home was up 3.6%. These figures hit especially hard in states with the most expensive fast food, as menu prices vary by franchise owner and location. As food overall has gotten more expensive — the short explanation is that inflation is the culprit.

Annual inflation rates look like filling a pool: the water level never lowers (not since 2009, at least), but the speed at which it fills can be faster or slower. The speed of inflation in 2024 was down from the year prior, but in no way were most prices decreasing. When the cost of manufacturing and distributing food items surges, so do the prices of that food. In October 2024, McDonald's sued its beef suppliers for alleged price fixing made worse by logistical issues with the beef industry. The unfortunate news is that consumers end up facing the ripple effect of these corporate fallouts.

Sometimes supply chain disruptions happen. This can involve livestock sickness, foul weather, labor shortages, global conflicts, or any other event that can hurt the products a business produces. After the height of the pandemic, many food retailers and suppliers experienced these kinds of supply chain disruptions, which led them to hike prices faster than many Americans could comfortably adjust to, in the following years. Cost of rent, energy, utility, and transportation also rose in late 2024 — all of which factor into the cost of running a fast food franchise.

Despite these trials, stock for Starbucks, McDonald's, Yum! Brands (KFC, Taco Bell, and Pizza Hut), Domino's, and Chipotle have risen over the five years ending in 2024. Major executives and shareholders for these companies and their suppliers likely remained in the top 0.1% of earners, but the average American has had to budget with care if they want to go out to eat. People can save money by cooking at home and brushing up on the cheapest fast food menu items in the U.S. It's also a great time to learn a new recipe or recreate fast food dishes at home. Obviously, fast food isn't going anywhere, but there might be better strategies for saving money on food during a time of high inflation.