Prices at limited-service restaurants including Wendy’s, Taco Bell, Chick-fil-A and Chipotle have increased more over the past decade than both full-service restaurants and overall inflation, according to the U.S. Bureau of Labor Statistics. Experts say rising labor costs are the main culprit. McDonald’s underwhelming first-quarter 2024 earnings results are one example of a fast-food giant feeling the repercussions of its soaring prices. Watch the video to learn more.
Chapters:
0:00 Introduction
4:30 Rising costs
6:05 Looking ahead
Produced and Shot by: Ryan Baker
Camera by: Natalie Rice
Edited by: Evan Lee Miller
Animation: Jason Reginato and Christina Locopo
Supervising Producer: Jeniece Pettitt
Senior Managing Producer: Tala Hadavi
Additional Footage: Getty Images, Burger King, Chili’s, Subway
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to make extra money outside of your day job? Sign up for CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. CNBC Make It readers can use special discount code CNBC40 to get 40% off through 8/15/24: https://cnb.cx/4dFP9Wa
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC
#CNBC
Why Fast Food Has Gotten So Expensive
source
Let’s say I’m investor. Treasury bonds are 4% that means any riskier investment than treasury bonds needs to yield more than 4% so McDonald’s needs to 4% more profit this year than last. Now to get that profit they need to overcome labor increase , ingredient increase and other miscellaneous cost such as marketing increases. The only reason place they can get that from is the consumer
Oh no they need to pay a good wage! Only if we could profit a lil bit less and pay good wages, stay with a quality product that is cheap and still profite
Never ever ever eat fast food. Have some respect for your body. That covers the stuff in the food that they tell you there putting in it.
What they don't tell you is horrific….
We did it Joe!
We will vote for a president capable of tying his shoes and bring peace and common sense back to the planet. A preschool class would do a better job than the ancient old crusty clowns currently trying to find their way to work.
Is it actually a good thing? Maybe people will stop eat crap and start cooking home meals?
By wages of employees I believe they wanted to say upper management salary increase
Corporate greed
People, show then the only way they understand their profits. Don't go there.
I’ve only just clicked but I already know the answer, it’s ✨ corporate greed ✨
I ask myself this every day at Mcdonalds in Switzerland
I think Americans will finally start eating more salads, so high prices are not negative thing. By 2030 Americans will be the skinniest nation in the world even the Africans will envy them. 😁 😁😁
This is such a BS video probably paid by fast food corporations. Don’t give me this wage stuff when revenues are way up.
The solution is easy. Do not eat fast food any more. Your pocket and your health will thank you.
How I deal with high fast-food prices, I stop buying fast food. now my bank account is getting fat.
Corporate lies. It's not wages, it's greed.
Here are a lot of lies nicely packed in this video. Just reading few comments you’ll understand. I am in a 50k plus city in Italy and the McDonald here barely survives and no one will miss it when will be gone.
I cant remember the last time I ate out probably rally's their fries are awesome……I did drive thru for a small coffee at mcd's it was less than a buck they have good coffee in the morning
You CAN pay 15 or even 20 dollars per hour AND have cheap menus AND have a stable business. The idea is that the company should not expect to make EVERINCREASING PROFITS FOREVER. You greedy heathens!
Here's some cold hard truth – companies will generally charge as high a price for their product as customers are willing to pay, because that's the most accurate reflection of how much perceived value their product/service is providing. Why wouldn't they increase prices if it will lead to more profit? For a corporation, their responsibility is ultimately to their shareholders. It might sound harsh but they don't exist to cut people a generous deal, they exist to make money. If you think they're charging too much, stop giving them your money. If enough people do that it'll hit their profits and they'll have to reconsider their strategy and lower prices.
Maybe there is a huge positive in shrinking waistbands across America
This crap should cost 3 times as much
You'd think the Rothschilds would have enough money to finance their own Geno in Palestine.
Then again 'they' have been a leech on US for decades now, why stop.(The 'Fed', AIPAC)
Just are at a McDonald in the Philippines. $1 sundae.
Meanwhile a big mac has shrank to the size of a 50 cent piece.
Its very good to have high fast food prices. People dont need to eat those things anyway. Hopefully everyone cuts way back on unhealthy eating habits 😁
Stopped buying fast food.
wages yet we're moving to robot ran establishments, they better lower them prices back down to where they were once its 100% robot driven
Don''t forget Biden send money to Ukraine and Israel! All that money going from US tax payers.
Absolutely love all these corporate crap comments when this all stems from not being energy independent from other countries. That's the cause right there
Fat food!!!! Oh i meant Fast food
The public has power here. If there was a massive boycott of one chain….say macdonalds for three months they would lower prices. If they do not then the boycott runs another three months.after that move the boycott to the next offender until they lower them. 30% reductions across the board. Sure it would take organisation but bud lite showed it can be done.
The other day I went to 5 guys with my partner, ordered 2 burgers, 2 small fries, 2 small drinks..$42. looked on the receipt and a small drink is now $5 gtfo
Bidenomics.
People need to relearn making a meal at home . It’s much healthier and much cheaper.
Its not food 😅
Yea it's always because of lower level employee "wage increases"…….has nothing to do with record dividends payments or CEO to employee pay ratios goimg from 20:1 in the 70s to 300:1 today.
It’s fast food you don’t have eat out if you can’t afford it don’t buy it buy groceries and make ur own food.
I can understand the small companies have to raise their prices. But fast food giants like McDonald's is a different story they can afford to take a hit by increasing staff wages and keeping food and mineral prices down simply just pure greed.
So in other words, workers are getting better pay and customers are getting a better quality restaurant for the same price but it is a terrible crisis because it isn't working out for rich owners.
1$ MC.Chicken is highly missed.
Inflation and wage increase is the reason. It’s a free market and the corporations Alwase want to make more just like people that looking for higher wage jobs. But 17% inflation alone just don’t drive the price of goods by 17% they would have to go to 20% or more to make the same profit. If Wallmart raised the salary of every employee they would not make any profit at all, so they must raise the prices or shut down. So a 25% increase is making the same profita.
Good!! It's an opportunity to learn to eat healthier
Nowadays it's much cheaper just to make your own burgers.
May as well spring for the low-end dining chains. Fast food restaurants forgot what purpose they serve. I get options are limited for people, but if you can, we can all opt to boycott these places for the greater good. Force them to make pricing decisions with consumers in mind. This is price gouging and the food sucks. They absolutely can lower their prices AND pay their employees a livable wage.
Comments are closed.