Additional Coverage:
Americans Pump the Brakes on Fast Food as Chains Battle for Budget-Conscious Customers
Fast food, long a staple of the American diet, appears to be losing some of its market share as consumers scale back on quick meals. A recent analysis by the Centers for Disease Control and Prevention (CDC) reveals a noticeable decline in fast food consumption across the nation compared to a decade ago.
For adults aged 20 and over, approximately 12% of their total caloric intake came from fast food between 2021 and 2023. This marks a decrease from the 14% recorded in the 2013-2014 period. The study also highlighted that individuals between 12 and 39 years old are the heaviest consumers of fast food, though their frequency tends to diminish with age.
This shift away from drive-thrus and quick-service counters is attributed to a confluence of factors. Experts point to the rising prices at fast food establishments, which have made once-affordable meals less accessible for many, alongside the growing influence of wellness culture prevalent on social media platforms.
Fast Food Giants Fight to Reclaim Customers
In response to these changing consumer habits and dwindling sales, major fast food chains are rolling out aggressive strategies, primarily focusing on price reductions and value offerings.
McDonald’s, a titan in the industry, began slashing prices on some combo meals in September. This move aims to entice back customers who have pulled away due to increasing costs.
McDonald’s CEO Chris Kempczinski openly acknowledged the challenge earlier this year, stating, “Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10. That absolutely is shaping value perceptions in a negative way.
So we’ve got to get that fixed.”
The company previously found success with its $5 Meal Deal, which bundled a McDouble or McChicken sandwich with small fries and a small drink. The popularity of this offer led to its extension through the current year. Other chains are following suit; Domino’s, for instance, launched its “Best Deal Ever” promotion this year, offering any pizza with any toppings for $9.99.
Will Price Cuts Deliver the Desired Boost?
While these price adjustments are a direct response to consumer complaints about high costs, their long-term effectiveness remains a subject of debate among industry analysts.
Neil Saunders, a retail analyst at GlobalData, weighed in on the strategy. “Cutting prices helps to solve the problem of McDonald’s being seen as too expensive,” Saunders told USA Today.
“The question is whether the price cuts are enough. Prices are still very elevated over where they once were, and it is spooking the consumer.”
Saunders also suggested that beyond price, menu innovation and introducing exciting new options could be crucial for driving customer traffic. He noted that while price cuts are broadly beneficial, “family diners may benefit most, as they are bringing multiple people, so their checks are much higher.”
As fast food establishments navigate this evolving landscape, the coming months will reveal whether these strategic price adjustments are enough to reignite America’s appetite for quick, affordable meals.