How Inflation and Supply Chain Issues Are Reshaping Fast Food Value Menus | WSJ
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- Value menus shot to popularity in the ‘90s after the burger wars consumed the fast-food industry. And thanks to Americans’ love for cheap eats, they’ve stuck around. WSJ’s Heather Haddon explains how inflation and supply-chain issues are changing the value menu.
Illustration: Adele Morgan
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The real tragedy about inflation is that consumer prices don't return to what they were in the past when inflation subsides. Inflation just slows down. For example, consider what fast foods cost in 1970. Even when inflation subsides, we'll never return to those prices--even if we go into a depression.
Yeah, and companies never adjust wages accordingly. I work at a McDonald’s, and they’ve yet to guarantee a base wage adjustment. Like, they can’t even claim inflation doesn’t impact costs, since they themselves are raising prices
That's true but a deflation scenario leads to mass unemployment because investment dries up. As long as wages keep outpacing inflation in the long run, it's fine.
@@kawaiidere1023 Unfortunately, the way to capture wage gains is to change jobs. Your employer knows that you'll take a lower wage because you don't want the inconvenience.
100%true the high prices will stay and they say we'll thsts the new cost of things until inflation comes back again. We're living in a world with new prices and a high cost of living again
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
When prices are high, I do NOT spend money on fast food. I cook at home instead. It's cheaper, healthier and tastes better too. Sometimes a meal even last (for 2 people) 2 days.
Ok. I still like McDonald's fries.
Inflation might single handedly lower obesity in america
Biden said inflation was zero in July.
@@bngr_bngr He's not wrong.
@noazucar inflation is measured year to year. There is not an inflation rate for month to month. If you would view it month to month then one would reach the false conclusion that their is barely any inflation in the economy.
People will still eat fast-foods. Nothing will stop them. It's will power and determination?
The obese woman two doors down from me still eats fast food almost daily...
Prices are going up at these restaurants, and you know they are never going back down
@Enlightenedone1111 I doubt these restaurant owners are strapped for cash. Franchises cost a lot of money to open and prices will have to drop a lot before these corporations see a dent in their profits.
Not only are fast food value prices higher, you pay more with your health.
this inflation that changed everything we buy its bigger then people think the dollar store is no longer the dollar store we changed history in a year... but worse this was done by man this wasnt a natural disaster we are accepting this inflation we should not only lower inflation but deflate everything back to pre 2020 that needs to be done for a healthier society for decades to come
And healthy food prices are even higher smh
you can go for vegan meals in Burger King. Just saying
@@iche9373 those options are not healthy and are exposed to cross contamination. Fast food places cook one one grill top.
Trump would never let this happen
Rather than paying more for a fast food burger meal, I choose to pay more for a real restaurant meal. $15 for a whopper combo is whack!
Very wack lol
I do too. I call ahead and take out
I agree. For the current fast food prices I can get a better meal from an actual sit-down restaurant.
Shrinkflation has hit fast food sandwiches. Now a bun is the size of a cookie.
That must be the best thing to happen to the American diet.
Bring back "Where's the beef?"
And even the boxes, the other day I had to ask my 6 year old son to get my chicken sandwich from chick filet , 🤣☺️
Eat fast food about once or twice a week I have noticed McDonald's and Burger King down sized their patties, not worth the money anymore. Rather buy a pack of frozen patties for the cost of 2 or 3 whopper meals.
Chickfila seemed to have done so last year
Sounds like you have the begging of a good BBQ party.
Why do you eat feast food twice a week? What's your favorite place? Did you think you get your money's worth?... No judgement here. I'm genuinely curious. I did fast food when time was tight. Now, I prefer sit down restaurants or fast casual.
The "Big" Mac hasn't been big for a long time
The meat is 1/10 of a pound. Like it always has been.
We stopped eating fast food since they're just as costly as a sit down restaurant now. Especially fast casual who are all expecting tips even though there are zero servers or dining room workers.
Same, couldn’t tell you the last time I’ve eaten McDonalds.
I stopped tipping.
I've just started going to where my dollar takes me further and only going to the main fast foods when they have a super low meal price or combo. Nice video. Keep up the good work.
Eat vegetables and fruits instead of that, better for your body and your wallet.
Exactly, sometimes I bring a piece of fruit or yogurt.
@@samimaini2073 no dollar menu stuff is cheaper
@@usersdksdfg you’ll feel more full when eating healthy. Whenever I eat a McDonald’s menu I’m hungry again after 30 minutes
We save coupons but on highways, where you're trapped, they don't take them
Literally blame everything on earth except corporate greed.
Literally ignore everything else on earth and blame it all on those evil wealthy capitalists. 👍🤡
@@ryanliu117 , when there's a fire & you see matches or gasoline, you don't blame it on the rain...unless you're the mainstream media or an empty headed neo-liberal
@@ryanliu117 True
@@ryanliu117 this but unironically
Inflation is a real thing that your favorite president Joe created.
I live in vegas, 2 combos from Carls Jr is almost 30.00, more than 1/2 the cost of eating at a sit down restaurant. Its just not a financial viable option. If you make $15/hr, it takes you almost 2 hours of work to pay for 1 meal. Imagine if you ate their 4x a month. Since the beginning of the year, I'll only eat fast food if their offering some kind of deals through their apps. Sonic is a great example of food app deals.
Well your first issue is living in vegas
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
Burgers will have a hole in the middle of the patty. This will lead to a hole all the way through the bun, patty and vegetables. Donut burger.
Like White Castle
There was a time when Burger King tried to match McDonald’s $1 McDoubles… those were the days
The .99 whopper was the best value
Not that long ago, either.
I thought $1 for 10 chicken nuggets was recent? Admittedly, I haven't been there for about a year
@@SilentXTMR wow I did start going to bk again recently because of their $5 snack box with 8 nuggets, a cheeseburger, small fries, and small drink but remember I used to go a lot when I was younger and most recently when they had 10 nuggets for 1.49 around 2016
@@echang426 I see. I've been going to Five Guys for my burger cravings nowadays. Expensive for fast food, but those burgers are good
The fast food industry is probably doing well because America is 1 of the world top agricultural producers. Most big chains have their own farms and trucking services, worldwide.
Increased fuel and fertilizer cost.
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
Me and my brother spent a good portion of our 20s eating at taco bell almost every single day. Reason being was they had burritos for 1 dollar. We would each get two and that would be dinner. They got rid of em close to a year ago and I haven't been to taco bell since. Don't see a point. If their prices are now the same as a Mexican place then why not just go to the Mexican place.
Tequero Taco Bell.
Taco Bell is just a step better than dog food, but costs a lot more per serving.
@@the_rubbish_bin yea, no. You're talking to a literal nutritionist. You don't need to explain to me anything about food that I do not know. I'm also a bodybuilder, eating is my middle name
@Deerheart so because I chose to spend 2 dollars on dinner everyday by going to the taco bell a block away from my house you assume I don't know how to cook?
You would be wrong sir, im a nutritionist and im also the king of buying groceries cheap. I also hunt, fish, trap, grow, you name it im an outdoorsman. There's always some internet nerd who thinks they know things lol. I better know how to cook meat seeing as I'm a bodybuilder and eat tons of protein a day. Lastly im Hispanic, don't talk to me about beans 😂
Fast Food restaurants will go bankrupt
In Canada my family of 4 at McDonalds is over $40. Total rip off for garbage food. We now only eat off value menus when we got for half the cost
I stopped going to fast food. Even before Corona I found prices too high for what you are getting. More than once, the basket of fries at MD were never properly filled. And when I brought that to the manager's attention, he would say "that is how much we fill those". Bye...Home cooking tastes so much better. I bring my food to work. Cheaper and healthier...
The best value menu is buying in bulk and cooking your own food. You can feed a family of 5 healthy food for a $1000/month.
Now, eat those 'value menu items' and it costs at least $5 a meal. That is at least $15/day per person. For a family of 5 that is $75/day = $2250/month of junk food and you are not even feeling full.
Bad math everyone not eating three times a day
@@jimmymorris9278 OK, please let us know your estimates.
BTW, my calculations did not even include the daily coffee, donuts, chips, water bottles, and 20 oz sodas that are commonly consumed on a regular basis and can easily add up to an additional $5 to $10.
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
In order to save the economy, everyone must go out and buy a $1500 folding phone and sign up for 10 streaming services. Get a $6 coffee every morning in your new ev, throw away all your perfectly good hd tv’s and buy bigger 8k tv’s… that’s really what these companies are betting
That's where all our problems are coming from, everyone consumes too much and oversees their needs over wants.
@@Krystal_Kitty7 the problem is keynesian economists want us to live paycheck to paycheck without saving and think inflation and debt is a good thing :/
Don’t forget to tip the cashier.
@@aurious5821 I'm very surprised anyone in this comments section actually knows Keynes. Just picked up "The road to serfdom" today
@@MarketFund2k you underestimate us
No lie, seeing the old McDonald's Menu Sheets gave me a massive wave of Nostalgia. Man, I miss those Menu Sheets over the TV Menu Screens.
It hurts to eat out these days. AND I love eating out.
That's what he said
Me too.
@@jerryrichardson2799 Bro my whole social life is about eating out with friends and making yt videos these day both are being done on my own lol
You should get a better paying job
There was a time when we " made it here", we had jobs for everyone and the products were of high quality, then the 1% wanted everything. Now Inflation drives prices up and if Inflation is high and jobs disappear by the millions we are in a recession and maybe headed for a Depression…So be careful with your money. It may take decades to get back on pay again. Luck to all.. I've seen folks make huge 7figure profit in a crashing market and pull it off much easily in a bull market Unequivocally the crash/recession is getting somebody somewhere
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They have strong profits, so this isn't about increased costs. It's about increasing profits as costs go up. It's just greed.
Are you an insider or you just throwing data out of your a**?
Did you watch the video? Costs are rising faster than revenues. Profits are decreasing
Chick fil a is not doing any of this and still out selling their competitors
ANSWER: Buy simple things at the grocers and cook at home. Just the money you save on gasoline sitting in the drive-thru makes it worth it, never mind the rip-off prices at chains
That’s the thing. We are fed convenience. Sure you save money and have leftovers by cooking at home but it’s easier to go to a drive thru.
Everyone always says, just cook at home, which trust me I do, A LOT, but sometimes I don't FEEL like cooking??? I have a family and it's tiring coming home after work and having to cook meals. Its mentally draining. Boomer parents had it SO easy and cheap and convenient and gen z and millennials get told "solutions" which really isn't the answer to the main problem.
@@NaturalBeauty214 You poor thing. AND you have to run a vlog. NO, I wouldn't stop you from paying $8--$10 for a single "value" meal. You go girl.
People just stop eating out!! Cook for yourselves stop being lazy. I’m from the Netherlands which is waaay more expensive than the US and still manage to cook for myself. The truth sometimes hurt it’s a matter of discipline and being assertive!! 🙃
I have another solution, how about these CEOs take a pay cut? Their salary goes up every year but that doesn’t contribute to inflation? Lol
I’ve thought CEOs needed a pay cut for a long time. Gotta be filthy rich though while workers don’t get paid enough and people pay too much.
They are incentivised to cut the cost to company for getting higher pay check . So the better they do that the higher their salary would go .
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
I seen where a Kroger CEO made a twenty million dollar salary and two thirds of their workers are on assistance.
I rarely ever eat out anymore. Too expensive.
In addition, people tend to move away from junk food, as concerns and awareness about health increases.
Health food doesn't come cheap bro, not even affordable these days
@@dosa2990 doesn't have to be health food just not junk food
Baby food is very toxic.
Why does obesity keep increasing then?
@@dosa2990 Rice, beans, green vegetables, and chicken are practically free.
It's odd to say I remember McChicken was $1 in 2019 and now it's 1.90 2022
Fast food prices feel broken in a way... many combos at these places now end up close to $15 dollars while theres probably many local restaurants with meals around the same price. if not cheaper
Yeah, but you have to wonder what corners are being cut to offer these alleged 'value menus' for such low prices... 🤔
Dawg your buying a burger from a fast food place that employee stoner teenagers.. you expecting gourmet quality on a shoestring budget ?
The real question is how large is their profit margin in the first place that they can still make money at such a 'discount'
@@604h22a That's what I'm saying!
These companies have CEO’s w/ massive bonuses, it’s disgusting they’re putting the price on the customer
But Noone is forcing you to buy their products
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
They say the FAH index only went up 6.5% but it seems more like 20% - 25% according to what everyone sees on the shelf at the grocery store, especially for meat and basic pantry stuff like canned goods.
It seems like more than 100% increased in Nyc here! Even those discount stores went up either same prices or more with those traditional supermarkets.
What is FAH index?
Same. In Indonesia, fast food becoming expensive. Due to my financial problem, I can't afford any fast food items anymore.
subway $5 footlong was the best
Which turned out to be 10". But still a good deal.
One could hope shrinkflation could be a great diet plan. But guess not.
I only buy kids meals, everything else isn’t worth it. My teen hates me 😈
You can still get a Taco Bell box for $5, they just don’t advertise it as a cravings deal anymore. It’s just a small tag near the value menu that says “Classic Box.”
Except it's nowhere near as good as the boxes of old. A box that resembles the original is like $8.99 now
I frequently buy a burger and something to drink and skip the fries, saves money and calories. Sometimes I skip the drink, as well.
I use apps on my phone to order at fast food places, they give me coupons and rewards like a free burger or free burrito. Mcdonalds is offering 10%discount on my order.
Looks like shrinkflation will put me on that slight caloric restriction diet I've been meaning to go on automatically.
Cook your own meals
I made Buffalo cauliflower wraps for dinner last night using my air fryer and enjoyed every bite. Cheap food which taste like crap=Crappy mood
Paying hamburger flippers $15/hour is rediculous....if you have an "IQ of 50 job" , you should make miminal $'s. I try not to each fast food anymore...paying $10 for a big Mac meal or 2 piece KFC is assinine!!!
mald
Gotta love how the food uses cheaper products and fillers, doesn’t taste worth a spit, costs way too much, and is prepared often with poor service. Makes you wonder if THEY are up to somethin. Makes you wonder if we’ll still see fast food in the next 15-20 years…
The people at the top should be paying like CEOs. Not the people at the bottom like all of us.
McDonalds will still get our business on weekends when we want a quick breakfast fix. Hashbrowns? Yes Please. 🙋🏻♂️
I suppose you can't argue with the convenience.
McDonald's coffee is the best for the money.
@@jerryrichardson2799 Laughs in home brewed coffee (seriously, it's cheap especially if you got it on discount)
Chilli and fries and frosties..nothing else from Wendy's is worth the money..McDonald's prices are redonkulus for a precooked burger sitting under a lamp..but white castles and their perfect size and freshly cooked burgers are awesome..and they're all I can afford..
I don't know, baconator from Wendy's is a nice deal if you have the buy 1 get 1 for a $1 coupon
The funniest part of this video is when you kept calling McDonalds product offerings "food".
coincidentally american waistlines expanded at the same as value menus
“ can I get 2 value menu meals?”
Where's the statistic?
"Consumer stress"? Just say recession babe, everyone knows it, but no one wants to sound the alarm bell.
Somebody doesn't know what the definition of recession is...
I only buy dollar menu, because I don't go to fast food "restaurants" to enjoy a good meal. I only go to get something small, fast, and cheap tp carry me until my next real plate.
Reduce meat inventory and reduce cup size inventory so keep only one size of cups and reduce the meat menu
Go deluxe grill cheese , or french toast , or fried rice would be great for economic value meal and real good softdrink and yogurt coffee and ice cream are best
I stopped going to McDonald when I saw it was almost $10 for breakfast.
I don't know how they get away with charging chipotle prices for such inferior quality
"Shareholders" screwing things up yet again.
to keep housing market going their supply chain can offer home buyers gift cards for year to bk ,kfc,,ect.keep demand up and money in consumers pocket for rising mortage rates.
In Australia I don't see the impact of inflation in fast foods. More in mom and pop restaurants and essentials in grocery stores.
Just have to live off of Costco hotdogs/pizza for the rest of my life.
As a binge eater… This sucks for me. I used to get 4 McDoubles, 4 mchickens, large fries, and 20 pc nuggets for under 20$…. Now the price for that is doubled !!! 🤬
Good. Lose some weight. Be healthier 🤓
Get help
Inflation ? No. GREEDFLATION
once these prices inflate or food portions shrink, they will never go back to what it was before even after this crisis is over...
Chicken Republic fastfood in Nigeria sells rice and egg combo now for 90 cents.
Americans don't like rice very much.
McDonald's needs to bring back the super size option.
Domino’s raised prices a ton near me, we used to get it a lot, not anymore.
Not a big loss tbh.
When I went to visit my dad in Massachusetts I got our favorite large whopper meal and it was over 30$ . I was shocked.
breh
For how many meals?
What in the......I'd just get Five Guys for about $10 more at that point
Fast Food restaurants are not worth it
Its time, energy, and convenience.
those fountain drinks only cost pennies to make anyways... the cup costs more than the drink >.>
I called Mountain Mike's Pizza restaurant near my house, I asked for the carry out special, she told me that it was 19.99 for a large one topping pizza and 3 bread sticks, so I went in and tried to order, it was 23.99. The manager OH we do not honor that price. I walked out.
I bet they offered trump a lifetime supply of soda on demand for the McDonalds ad
That's why he is heavy!
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WHY DOES HER TOP KEEP CHANGING FROM ORANGE TO RED STRIPES!
we need to raise wages too
They forgot Grandy's man. $3.99 for chicken fried steak, a roll, mashed potatoes and green beans....... Mmmmmmmmmm!!!!
It is?
Surprisingly Domino's and McDonalds have not changed a thing in my country. I can still get pizza for the same price I did in 2019.
@Shamnas A or maybe they were just really scalping before 😳
I'm an adult with a salaried job and I still prefer the value menu like I'm a broke college kid.
Same, I have no problem spending a decent amount of money on a actual restaurant meal, but if I'm eating fast food, the entire point is that it's supposed to be cheap.
Easy on that salt!
this video made me hungry :D
Great video explainer
I’m McDonald’s
They better bring back the dollar menu. I'm poor.
If you're poor you shouldn't be eating out.
They needa bring back the dollar menu.
Nobody question that the death food gets cheaper while everything else sky rockets.
With the obesity epidemic, portion sizes SHOULD be smaller!
It is my opinion that the fast food model is no longer viable. Trying to feed profits to the stock market, corporate, and CEOs, is killing profitability. That is why you can get a good burger and unlimited fries at red robin for 14 bucks, and a whopper "value" meal is nearly the same.
I've been going to mom and pop restaurants and getting a better deal.
This is the end of all businesses in capitalism. Profit, Profit, Profit, until it is no longer sustainable. Then sell sell sell,,, and brands go away.
The only way I could do it was vacuum menu food
inflation doesn´t have anything to do with Ukraine. it started before. and also, inflation means artificially raising the price to compensate for losses. and losses are happening because of relative overproduction. too much food has been produced, more than can find solvent demand. hence all the food plant fires and the destruction of millions of tons of food during schmovid
No problem every year inflation growth 5percent ,we should accept hike
I’ll save u 6:20 of your life.
They’re not value menus anymore. Hahahaha
Is the voice the girl from cheddar?
idk how a combo went from under 2 bucks to almost 15 in like 25 years... seems a bit much.
What country are you in? Prices are not that unstable in the US.
@@spacetoast7783 in canada.
But Joe said there was zero inflation,,,
Why do you mention that fact?
I can no longer go to Wendy's and ask for the fo fo fo
Rather eat at home or a local restaurant
big mac index is too old. I think starbucks coffee index is more accurate for understanding economy situation.
what a bunch of weirdos in the comments. fast food will never go away (especially in the US). it is part of the american culture... just a bunch of haters. fast food sucks maaaaaan. lol, weirdos
bruh its crazy how cheap menus are in america.. I live in Switzerland we pay at least double the price…
Double the price, but your minimum wage is 4 times ours. Seems decent!
@@Chasing-the-outdoors Almost nobody earns minimum wage.
Will inflation decline a anytime soon?