Coalition of Franchisee Associations

June 14, 2022

Maze on Menu Inflation (Premium subscription)

"The recovery has largely come from higher prices, and probably more so than you might even imagine."

When sales increases are a product of price increases managments and investors show little concern about decreases in traffic. That's the typical short-term thinking that runs Wall Street.

Restaurants recover from the pandemic, but things are far from normal

1 comment:

Richard Adams said...

I differ from Jonathan on one point. Toward the end of the article, he suggests that customers might understand higher prices because they know grocery prices are also high. That's not been my experience. In discussions with neighbors, Wall Street types, reporters, and even former MCD O/Os the subject of menu prices always comes up in the form of a personal complaint with no reference to commodity markets.
And at our house, we've almost completely stopped ordering out because if you add the delivery fees, tips, and higher menu prices it's just so much wiser to jump in the car and make a curbside or drive-thru run. Or, dine out.
I keep forgetting to ask but I'd bet deliveries are way down at the typical McDonald's?