Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Americans Turn Away from McDonald’s and Starbucks After Price Hikes

Daniel Kim Views  

According to a new analysis, recent inflation by major food and beverage franchises such as McDonald’s and Starbucks has led to a significant decrease in consumption among Americans despite their high brand loyalty.

On May 5 (local time), The Wall Street Journal (WSJ) reported that large food companies had been banking on customer allegiance when implementing drastic price increases following the COVID-19 pandemic. However, this strategy backfired, as some customers abandoned these brands.

The cost increases following the pandemic led to price hikes by food and beverage companies. As a result, the proportion of income that American customers spend on food has reached its highest level in 30 years. Consequently, some purchasers started to reduce the amount of money they spent on food and beverage companies, and a third of the companies that raised their prices saw either a decrease in sales or a slowdown in sales growth compared to pre-pandemic levels.

Dennis Montenaro, who lives in Laguna Niguel, California, told WSJ that he had recently ordered Bacon, Egg & Cheese Bagle, and coffee from McDonald’s and had to pay $9.67. After looking at the receipt, he vowed to stop eating fast food.

David Michael, 58, a lawyer living in El Dorado Hills in the same state, no longer visits McDonald’s even though he used to frequent almost every week. He was shocked to see the price of soda increase from $1 to $1.69. He also stopped going to Starbucks since the costs have skyrocketed compared to the past. He said, “Honestly, it’s not unbearable, but I can’t accept that it’s almost twice as expensive as before.”

According to the U.S. Department of Labor, as of March this year, fast food prices were 33% higher than in 2019, and grocery prices were up 26%.

This has indeed led to a slowdown in consumption. According to market research firm Revenue Management Solutions, the number of fast food customers in the U.S. decreased by 3.5% in the first quarter (January to March) of this year compared to last year.

With its large base of loyal customers, Starbucks experienced a 7% drop in U.S. store traffic over the three months ending March 31 of this year. Similarly, McDonald’s has observed a clear trend of spending restraint, particularly among low-income consumers, leaving their management teams puzzled. In response, both companies have shifted their strategies to regain customers. McDonald’s and Starbucks plan to introduce more promotions and discounts, while Mondelez is exploring various options, including price cuts and adjustments to the quantity and pricing of their products.

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[WORLD] Latest Stories

  • Could Trump Solve the North Korea Puzzle Again? Insights from a Former NSC Director
  • Caught in the Act: U.S. Accuses Chinese Firms of Backing Putin in Ukraine Conflict
  • U.S. Vice President Kamala Harris Reports Receiving Beyoncé's Concert and Football Game Tickets
  • Promise of a United Front: South Korea's National Assembly Aims for Harmony
  • White House Targets Chinese Solar Imports: Tariffs on Dual-sided Panels and Blocking Circumventing Exports through Southeast Asia
  • Weapons for Defense, Not Dollars: North Korea's Stance on Arms Exports Revealed!

Weekly Best Articles

  • 10 Surprising Laws That Could Get You Arrested Abroad
  • New mRNA Cancer Vaccine: A Beacon of Hope for Brain Tumor Patients
  • Why Do We Feel Moody at Night? 10 Important Role of Serotonin
  • 10 Hidden Role of Pillows in a Good Night’s Sleep
  • Double Trouble: Two APOE4 Genes Escalate Alzheimer’s Onset
  • Are Men with High Testosterone More Prone to Heart Disease?
  • Ugly Truth About Using Hand Cream as a Face Moisturizer
  • New Research Unlocks Genetic Puzzles of Hypertension
  • Scotland Offers $63,000 to Live on Stunning Islands – Here’s Why
  • Get Ripped in Record Time: The Truth About Muscle Building
  • The Secret to Maintaining Muscle Strength May Be in Your Biological Clock
  • Tourists Turned Off by Rising Costs of Hawaii’s Vacation Rentals

You May Also Like

  • 1
    The Secret to Maintaining Muscle Strength May Be in Your Biological Clock

    LATEST 

  • 2
    Tourists Turned Off by Rising Costs of Hawaii's Vacation Rentals

    LIFESTYLE 

  • 3
    Blast Off to China: Rise of Space Tourism in Hainan

    LIFESTYLE 

  • 4
    Beat the Heat: How to Prepare Abalone Samgyetang for a Healthy Summer

    LIFESTYLE 

  • 5
    10 Ear Diseases You Should Never Ignore

    LIFESTYLE 

Popular Now

  • 1
    How Anxiety Spreads Like Wildfire After Trauma

    LIFESTYLE 

  • 2
    New York 2027: City Transformed by Cannabis and Autonomous Cars

    LIFESTYLE 

  • 3
    Uber Conquers Africa: 1 Billion Rides and 10 Billion Kilometers

    LIFESTYLE 

  • 4
    New Research Suggests Dietary Shifts Can Help Combat Pulmonary Hypertension

    LATEST 

  • 5
    Olive Oil Proven to Reduce Dementia-Related Deaths

    LIFESTYLE 

Weekly Best Articles

  • 10 Surprising Laws That Could Get You Arrested Abroad
  • New mRNA Cancer Vaccine: A Beacon of Hope for Brain Tumor Patients
  • Why Do We Feel Moody at Night? 10 Important Role of Serotonin
  • 10 Hidden Role of Pillows in a Good Night’s Sleep
  • Double Trouble: Two APOE4 Genes Escalate Alzheimer’s Onset
  • Are Men with High Testosterone More Prone to Heart Disease?
  • Ugly Truth About Using Hand Cream as a Face Moisturizer
  • New Research Unlocks Genetic Puzzles of Hypertension
  • Scotland Offers $63,000 to Live on Stunning Islands – Here’s Why
  • Get Ripped in Record Time: The Truth About Muscle Building
  • The Secret to Maintaining Muscle Strength May Be in Your Biological Clock
  • Tourists Turned Off by Rising Costs of Hawaii’s Vacation Rentals

Must-Reads

  • 1
    The Secret to Maintaining Muscle Strength May Be in Your Biological Clock

    LATEST 

  • 2
    Tourists Turned Off by Rising Costs of Hawaii's Vacation Rentals

    LIFESTYLE 

  • 3
    Blast Off to China: Rise of Space Tourism in Hainan

    LIFESTYLE 

  • 4
    Beat the Heat: How to Prepare Abalone Samgyetang for a Healthy Summer

    LIFESTYLE 

  • 5
    10 Ear Diseases You Should Never Ignore

    LIFESTYLE 

Popular Now

  • 1
    How Anxiety Spreads Like Wildfire After Trauma

    LIFESTYLE 

  • 2
    New York 2027: City Transformed by Cannabis and Autonomous Cars

    LIFESTYLE 

  • 3
    Uber Conquers Africa: 1 Billion Rides and 10 Billion Kilometers

    LIFESTYLE 

  • 4
    New Research Suggests Dietary Shifts Can Help Combat Pulmonary Hypertension

    LATEST 

  • 5
    Olive Oil Proven to Reduce Dementia-Related Deaths

    LIFESTYLE 

Share it on...