The affordability of fast food, once a staple for quick and inexpensive meals, is now being questioned by a significant portion of Americans. According to a recent survey by personal finance site LendingTree, four-fifths of Americans now consider fast food a luxury due to rising prices. The Bureau of Labor Statistics reports that fast food prices have increased by 4.8% over the past year and by a staggering 47% since 2014.

Shocking Price Increases

LendingTree’s survey, which included over 2,000 consumers, revealed some eye-opening statistics:

• 78% of respondents view fast food as a luxury because of its high cost.
• 62% are consuming less fast food due to rising prices.
• 65% have experienced shock at their fast-food bill in the last six months.
• 75% believe it’s cheaper to eat at home.

These findings were published on May 20, based on a survey conducted in April.

“For generations, American families have seen fast food as a relatively cheap, convenient option for nights when cooking isn’t feasible,” said Matt Schulz, chief credit analyst at LendingTree. However, the landscape is changing as consumers increasingly opt to cook at home. The survey found that 56% of consumers now prefer making food at home for an inexpensive meal, while only 28% still turn to fast food.

Industry Response to Price Hikes

The rising cost of fast food has led to various reactions. A USA TODAY analysis highlighted that combo meals at major burger chains are now significantly more expensive, with a Big Mac combo in Seattle nearing $15 and meals at Five Guys reaching up to $20. Earlier this year, a Five Guys receipt totaling $24.10 for one meal went viral, sparking a debate about fast-food prices.

Kimberly Palmer, a personal finance expert at NerdWallet, expressed concern over these increases. “It’s so upsetting because it goes against what we have grown to love about fast food, which is its affordability,” she said. Additionally, rumors about surge pricing at fast-food chains like Wendy’s have exacerbated consumer anxiety. Although Wendy’s denied any plans for surge pricing, 78% of Americans surveyed expressed concern about the possibility.

Impact on Consumer Behavior

The trend of rising prices appears to be driving consumers away from fast food. Industry data indicates that major chains like McDonald’s and Wendy’s have seen a decline in business as low-income customers cut back on spending. To combat this, many operators are introducing value-oriented offerings to attract customers. Burger King, for instance, launched various deals and discounts for its loyalty program members in conjunction with National Hamburger Day. Wendy’s introduced a one-cent cheeseburger promotion, and McDonald’s is reportedly planning a series of $5 meal deals.

“McDonald’s, Wendy’s, Burger King, and Jack in the Box are all preparing bundled value meals this summer to regain customer traffic,” reported Restaurant Business, an industry journal. Despite the high prices, fast food remains a part of many Americans’ routines. The LendingTree survey found that three-quarters of respondents still eat fast food at least once a week. However, the industry’s shifting dynamics suggest that the days of fast food as a cheap and convenient option may be numbered.