Fast Food Prices To Be as High as Fine Dining?
Bad news for fast food lovers. Fast food restaurants get such a bad rep for not serving the healthiest of foods, but this reputation certainly does not stop millions from eating in these famous chains. But this new development just might.
Fast Food Prices Hiking Up
According to a new report, fast food is likely to be as expensive as fine dining foods in the near future, as reported by Yahoo Finance.
For those who have gotten used to eating at their local fast food joints because of the pandemic, wherein other dine-in restaurants were forced to shut down or operate in a limited capacity, this will be quite a shocker.
After all, people do not troop to McDonald's or Burger King just because of the greasy goodness they offer, but because in the grand scheme of things, fast food menu items are still far more affordable than regular dine-in restaurants, more so fine dining establishments.
Cash-strapped families usually do not have any choice but to eat the best value meals offered by the different fast food establishments. New government data might be a cause of concern because it shows that fast food prices have already undergone the highest inflation rate since 2008. If this trend does not reverse soon, it will keep going higher.
Based on the new data, prices at limited-service restaurants increased by a massive 6.2% year-over-year compared to full-service restaurants (with wait-staff and dining rooms), which has spiked up by 2.9%.
Fast Food Price Hike Sustainable?
The price hike, though, just might be caused by the pandemic, which has led to much higher demand. This higher demand is the one driving the inflation rate, as the Restaurant Business stated.
Fast food chains also have to pay extra wages to operate at maximum level during the pandemic, so they have to raise menu prices.
The question is how sustainable the demand will be once the prices hike up even more. Those who are used to ordering their fast food items through third-party apps can see the prices of their food go way higher, since these apps charge extra.
Based on the analysis of Restaurant Business's Jonathan Maze, all these factors can eventually make fast-food delivery as expensive as an order from some full-service restaurants. If that happens, will anyone still push to eat at fast food chains?
According to QRS Magazine, there is a high chance that the high demand trend will tilt anyway if more restaurants open up. If this happens, maybe the inflation of fast food prices will also go down.
With the vaccine roll-out, this just might be possible soon. It is not likely to happen overnight, and it's also unclear when that will happen since the pandemic is still raging; and in some areas, infection rates are still going up.