78% of Americans Now See Fast-Food as a Luxury, Abandoning Their Favorite Chains

The value proposition of fast food in America has always been this: Fast, cheap, and convenient food that is consistent no matter where you get it. In the not-so-distant past, you could get an entire meal for less than $10, but a recent study by LendingTree revealed that 78% of Americans now see fast food as a luxury rather than a cheap and fast dining option. As a result, Americans are eating out less, and the fast food giants are suffering.

Rising Costs Drive Away Customers

Primarily, fast food has become too expensive for many Americans to justify. Inflation has driven up the cost of fast food and it has become more of a luxury than a cheap alternative to fine dining, especially for low and middle-income consumers. The rise in cost is especially frustrating for customers who recall getting the same meals for far less just a few years ago.

Decreased Value Frustrates Customers

In addition to inflation driving up costs, consumers are growing increasingly frustrated with shrinkflation. This is the phenomenon when prices are going up but the size of the product actually decreases, meaning you are receiving much less value for the same or even more money. Portion sizes are smaller, and yet prices are higher.

Customers Seek Healthier Alternatives

Historically, fast food has been an attractive option for low-income customers because this unhealthy food was cheaper than purchasing fresh produce and healthy alternatives from the grocery store. But now, with prices skyrocketing, many shoppers are turning to healthier alternatives and prioritizing nutritious, whole foods instead of greasy fast-casual options.

Quality Concerns Rise

Many customers have taken to online forums such as Reddit to lament the decline in fast food quality as well. They claim that the food from their favorite chains like McDonald’s, Taco Bell, and Chipotle doesn’t look, smell, or taste the same. They fear that chains are decreasing their quality standards to try to make larger profit margins. 

Fast Casual Competition

Fast food chains are now facing increased pressure from fast-casual dining alternatives. Restaurants like Applebee’s and Chili’s tend to offer higher-quality food at still-reasonable prices, making them an ideal alternative to traditional fast food. 

Spending Habits Are Changing

In the current economy, spending habits are rapidly shifting, especially for low and middle-income households. Eating out has become more of a luxury than a common occurrence. Eating out is one of the first costs that consumers cut when trying to budget.

Meal Delivery Services Are Providing Stiff Competition

One of the biggest values that fast food provided was convenience. But now, there are tons of different meal delivery services that are actually far more convenient than the drive-thru. Services like HelloFresh and Blue Apron deliver ready-made meals or ingredients right to your doorstep, saving consumers from a trip to the grocery store or even stopping at McDonald’s. 

Social Media Plays A Role

As social media evolves, it continues to play a larger role in the spending habits of people online. Many platforms promote influencers and food bloggers who promote healthy eating habits, which inspires viewers to do the same. People are also sharing simple recipes at a higher rate than ever before, making cooking more accessible and manageable for consumers.

The Fall of Fast Food

The rapid decline of fast food in the U.S. can largely be attributed to the fact that Americans just don’t feel like it provides value. The skyrocketed prices are not affordable for many, the decreased portion sizes frustrate them, and the variety of alternatives leaves them with tons of options.