Yes, It’s More Expensive to Eat Out: How Big is the Price Hike at 6 Chains
Several major restaurant chains have rolled out price increases in 2024 or have announced increased menu prices are coming this year.
It's crazy what a combo meal will set you back at most fast food drive-thru's now.
The online resource Eat This, Not That! reports on the increases announced by six national chains.
The U.S. Bureau of Labor Statistics reports prices for food at a restaurant were 4.2% higher in March 2024 than one year ago.
Add to that factors like wage increases or supply chain disruptions to cattle supply shortages and it seems the compounding effect is beyond a few percentage points.
Here's what you can expect at these top restaurant outlets
McDonald's
The Golden Arches have been bashed by cutomers in social media over their price increases. The CFO reported the average prices at McDonald's climbed 10% in 2023 and even higher on some menu choices.
The trade publication Restaurant Business Magazine found the average cost for Big Mac's jumped 16.4% between 2021 and 2024. The McDonald's cheeseburger increased a whopping 55%
Those were averages among locations in all 50 states and prices vary and would have been higher in some restaurants.
Chipotle Mexican Grill
Customers have been aware of price increases in recent years at Chipotle fans should expect to pay even more for burritos and bowls this year.
In February, Chipotle executives announced they plan to raise menu prices another 2.5 to 3% this spring. The CFO said California's new $20 minimum wage increase will mean even steeper menu hikes in the Golden State.
Keybanc finacial services has found the menu prices are already up 7% to 8% at most of the Chipotle Mexican Grill locations in California as of early April 2024.
Domino's
Domino's customers should expect a small increase in prices at the pizza chain this year.
According to Eat This, Not That!, Domino's CFO announced a "modest price increase in the low-single digits" this year in the United States.
Domino's customers in California will also see larger price increases than the rest of the country, due to the new minimum wage law.
Texas Roadhouse
Prices at Texas Roadhouse jumped twice in 2023. The steakhouse chain beefed up menu prices by 2.3% in April 2023 and by another 2.7% in October 2023. Another 2.2% increase was announced in February 2024 to offset inflation by company CFO Chris Monroe. At this pace of price hikes, customers may anticipate more menu increases as the price of beef is expected to climb in 2024.
Despite the menu price hikes, Texas Roadhouse is has seen a 9.9% increase in same-store sales in the fourth quarter of 2023 and restaurant customer traffic is up by over 5%
Texas Roadhouse operates three Washington state locations in Kennewick, Spokane and on Joint BaseLewis-McChord, near Tacoma.
Cracker Barrel
We don't have a Cracker Barrel in Washington state but there is one just over the border in Idaho. I recall a manager of a Cracker Barrel tell me the chain will never operate in Washington because of the Evergreen state's business climate. Nonetheless, If you've noticed the tab getting steeper at Cracker Barrel, the company announced prices were up 4.8% earlier this year. The chain expects its prices will rise 5% by the end of 2024.
Reports show customers are unhappy and Cracker Barrel has seen a 4% drop in customer visits in their most recent quarter.
Shake Shack
Shake Shack has six western Washington locations; Kirkland, Lynnwood, Tacoma and 3 in Seattle.
Company CFO Katie Fogerty announced a 2.5% hike for menu prices at most locations should be anticipated in 2024.
There will also be further increases on the menu in California due to the minimum wage increase to $20 hourly.
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