Kevin Roberts remembers when he could get a bacon cheeseburger, fries and a drink from Five Guys for $10. But that was years ago. When the Virginia high school teacher recently visited the fast-food chain, the food alone without a beverage cost double that amount.<\/p>\n\n\n\n
Roberts, 38, now only gets fast food “as a rare treat,” he told CBS MoneyWatch. “Nothing has made me cook at home more than fast-food prices.”<\/p>\n\n\n\n
Roberts is hardly alone. Many consumers are expressing frustration at the surge in fast-food prices, which are starting to scare off budget-conscious customers.<\/p>\n\n\n\n
A January poll<\/u><\/a> by consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, pointing to cost as a concern.<\/p>\n\n\n\n For some of the nation’s best-known restaurant chains, losing lower-income customers means weaker sales, and potentially a dent to profits, said restaurant analyst Mark Kalinowski, president of Kalinowski Equity Research.<\/p>\n\n\n\n “When you look at McDonald’s, they’re not getting a majority of high-income customers \u2014 the middle- and lower-income class are the bulk of their business,” he said. “They need to be cautious with their spending, and that’s what you’re seeing right now.”<\/p>\n\n\n\n As fast-food prices have risen, recent earnings reports from industry leaders such as McDonald’s and Taco Bell parent Yum Brands show that same-store sales have slipped over the last year. <\/p>\n\n\n\n “The whole conceit was that you were getting some OK-level of food for a low price and you could get it quick,” Roberts said. “Now I can’t justify the expense. If I’m paying $15 for a burger and fry and drink and it’s McDonalds quality, forget about it \u2014 I’m going home.”<\/p>\n\n\n\n Casual dining restaurants are also feeling the absence of low-income Americans. The CEO of Dine Brands, which owns Applebee’s and IHOP,\u00a0told<\/u><\/a>\u00a0CNBC this week that the casual restaurants are seeing a decline in low-income customers.\u00a0<\/p>\n\n\n\n Fast-food prices have shot up over the last decade, according<\/u><\/a> to FinanceBuzz. The personal finance site found that the price of a McDonald’s Quarter Pounder with Cheese meal from McDonald’s more than doubled in price from $5.39 in 2014 to $11.99 this year.<\/p>\n\n\n\n Other restaurant chains also have jacked up their prices, FinanceBuzz said. Between 2014 and 2024, Popeye’s, Jimmy John’s and Subway hiked their food prices 86%, 62% and 39%, respectively. The price of a two-piece chicken combo at Popeyes jumped from $6.49 to $11.39 over that period, while an eight-inch club tuna from Jimmy Johns rose from $5.75 to $9.10, according to FinanceBuzz. <\/p>\n\n\n\n FinanceBuzz derived its data by selecting 10 menu items from each fast-food chain, using third-party websites like fastfoodmenuprices.com and menuwithprice.com to check the menu prices in 2014, 2019 and 2024. <\/p>\n\n\n\n To be sure, menu item prices at fast-food restaurants can vary wildly by state. While prices are set at the corporate level for some fast-food restaurants, they are determined by individual franchise owners at others.\u00a0<\/p>\n\n\n\n Restaurant chains point to rising labor costs as a key factor driving up prices<\/u><\/a>. Across the U.S., 22 states raised their minimum wages in January<\/u><\/a>, although the federal baseline pay remains stuck at $7.25 an hour. In California, fast-food chains with 60 or more locations nationwide are now required to pay their workers a\u2002minimum wage of \u2002$20 an hour<\/u><\/a> following passage of a new law last fall. <\/p>\n\n\n\n Labor advocates dispute that rising employee wages are to blame for higher fast-food costs. A March analysis<\/u><\/a> of California fast-food restaurants by the Roosevelt Institute, a liberal think tank, noted the industry’s record profit margins.<\/p>\n\n\n\n “Our analysis of financial data for the past decade finds increases in fast-food industry operating profits and rising markups, suggesting that affected employers can absorb the increased operating costs associated with a higher industry minimum wage without increasing consumer prices or reducing employment,” the report states.<\/p>\n\n\n\n Jack in the Box, Jimmy Johns, McDonald’s, Popeyes, Subway and Yum did not respond to requests for comment from CBS MoneyWatch. <\/p>\n\n\n\n For now, companies appear to be looking toward rewards points programs, discounts<\/u><\/a> and mobile apps<\/u><\/a> in an effort to keep customers loyal. But McDonald’s CEO Chris Kempczinski acknowledged the impact of rising prices last month in an earnings call. <\/p>\n\n\n\n “[A]cross almost all major markets, industry traffic is slowing,” Chris Kempczinski told Wall Street Analysis. “McDonald’s has a long history of being the go-to destination for value, and it’s imperative that we continue to keep affordability at the forefront for our customers.”<\/a><\/p>\n\n\n\n