Introduction
As the cost of living continues to rise, many people are looking for ways to save money. One of the most popular ways to do this is to cut back on eating out. Unfortunately, this means that some of the most popular burger chains are losing customers due to inflation. In this article, we will take a look at which burger chains are struggling the most and what alternatives you can choose instead. We will also discuss how you can save money while still enjoying a delicious burger. So, if you’re looking to save money while still satisfying your burger cravings, read on to find out which burger chains are losing customers amid inflation and what you can eat instead.
These Burger Chains Are Losing Customers Amid Inflation — Eat This Not That
As the cost of living continues to rise, many people are looking for ways to save money. Unfortunately, that means some of the nation’s favorite burger chains are feeling the pinch. According to a recent survey, several popular burger chains are losing customers due to inflation.
The survey, conducted by market research firm YouGov, found that McDonald’s, Burger King, and Wendy’s are all experiencing a decline in customer satisfaction due to rising prices. The survey also found that customers are increasingly turning to fast-casual restaurants, such as Shake Shack and Five Guys, for their burger fix.
McDonald’s, the world’s largest burger chain, has seen its customer satisfaction rating drop from a high of 79% in 2017 to just 73% in 2019. Burger King and Wendy’s have also seen their ratings drop from 78% and 77%, respectively, to 73% and 72%.
The survey also found that customers are increasingly turning to fast-casual restaurants for their burger fix. Shake Shack, Five Guys, and In-N-Out Burger all saw their customer satisfaction ratings increase from 2017 to 2019. Shake Shack’s rating rose from 79% to 83%, while Five Guys and In-N-Out Burger both saw their ratings increase from 78% to 81%.
It’s clear that customers are looking for more than just a cheap burger. They want quality ingredients, freshness, and a unique experience. Fast-casual restaurants are able to provide all of these things, while traditional burger chains are struggling to keep up.
If you’re looking for a great burger without breaking the bank, it’s time to start exploring the fast-casual options. Shake Shack, Five Guys, and In-N-Out Burger all offer delicious burgers at a fraction of the cost of traditional burger chains.
Just how intense is inflation right now? We haven’t seen price jumps like these in 40 years, according to numbers from the U.S. Bureau of Labor Statistics. Some of the largest increases over the past 12 months include electricity (up 12%), utility gas service (up 30.2%), and meats, poultry, fish, and eggs (up 14.2%), reports Forbes.
When it comes to buying these necessities, customers don’t have much choice. But what about discretionary spending on, say, fast food? How are some of the biggest burger chains faring amid these challenges?
And don’t miss 5 Restaurant Chains That Raised Their Prices the Most.
According to data company Placer.ai, of America’s three largest burger chains, McDonald’s is leading the pack with the best performance in relation to 2019. Compared to the same time period of that year, visits to the chain’s locations were up by 6.3% in April and 3.8% in May.
The chain has also seen more foot traffic every single month this year compared to 2021. It looks as though all the changes McDonald’s had made in 2021—from raising the bar on celeb collaborations to rolling out its biggest loyalty program nationwide—are paying off.
On the flipside, Wendy’s and Burger King are seeing more struggles with foot traffic in the current economic climate. While year-over-year visits were up at both chains, the second- and third-largest burger franchises in America are currently lagging behind their 2019 traffic. Compared to May of 2019, traffic this May dropped by 12.1% and 12.4% respectively.
Could higher prices be at play? Wendy’s raised its menu prices by 6% last year, while the chain confirmed it plans to increase them by another 5% in 2022.
“We did talk about taking 5%-plus pricing,” said president and CEO Todd Penegor in an interview with CNN Business. “We’ve got to find that point where we can balance passing on some price but still being of relative value to the consumer.”
Over at Burger King’s largest franchisee, Carrols Restaurant Group, CEO Paolo Pena is facing reality as well. “Even if inflation moderates in the back half of this year, we’re likely to feel its impact on our cost structure for some time,” Pena said, according to Restaurant Business. “To deal with it, we are going to need to adapt and evolve as never before. And to do that, we are going to need to look at all aspects of our operations with fresh eyes.”
The good news, reports Placer.ai, is that regional burger chains In-N-Out Burger, Whataburger, Sonic Drive-In, and White Castle are seeing consistent growth in visits this year compared to 2019. The question is: What’s their secret sauce?
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Melissa Fiorenza