Tuesday, June 25, 2024
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Chick-fil-A Prices Skyrocket By Over 10% Amid Raging Inflation

A picture of Chick-fil-A restaurant
Source: Pinterest

Chick-fil-A Prices Skyrocket By Over 10% Amid Raging Inflation

Source: Pinterest

The issue of inflation in the United States keeps growing as most businesses keep increasing their price tags. Especially in the fast food industry, the cost of the menu keeps rising.

The cost of living has left many business owners with no choice but to increase their prices to make gains and meet customers’ needs and satisfaction. Chick-fil-A is no exception, as it has recently inflated its prices by over 10%.

Inflation Cut Across Fast Food Industry

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The hike in food prices seems to cut across the fast food industry. Recently, Taco Bell also faced a huge pushback on its menu price change. Most fast-food restaurants in the country have also faced the same dilemma. Grocery stores are also not left out.

The Centers for Disease Control and Prevention reveal that about 36.6% of American adults consume fast food daily. This means that a significant percentage of Americans eat out every day, and the inflation in fast food price tags will affect them in one way or another.

Inability to Afford Fast Food

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According to reports, many Americans are complaining about the constant rise in prices of fast food. Generally, from 2021 to 2024, the fast food industry experienced a 20% price increase.

Reports have it that at least 28% of Americans have stopped eating in fast food restaurants as they can no longer keep spending in excess to buy fast food.

Reason for Increase in Fast Food Prices

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The increase in fast food prices did not just start this year; it has been happening at a slow pace since 2021. But recently, the aggravating situation has been calling for attention as Americans ponder why this keeps happening.

The constant increase in fast food prices is quite complicated, as there’s no direct reason. However, the country is currently experiencing general inflation, high costs of production and transportation, and the growing cost of labor. Hence, the industry has no choice as it wouldn’t want to lose money from its businesses.

Inflation on the Rise

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Inflation has cost businesses a lot. Business owners do not wish to keep increasing the prices of their goods and services, but the rising inflation has left them no choice.

Dollar has become less valuable, and companies pay more for production and transportation. Most things a fast food will need for production are also on the higher side.

Chick-fil-A Started Increasing Its Price Tags Since 2022

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The increase in Chick-fil-A’s fast food prices reportedly started in 2022. That year, the company increased its prices by 15%, which made its classic chicken sandwiches more expensive.

Also, in 2023, they experienced another price hike on their entire menu, this time by 6%, which made dining a bit pricier for customers.

Increment Skyrocket by 10% in 2024

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Just Recently, Chick-fil-A has increased its food price tags by over 10%. According to the Wall Street Journal, a resident of Los Angeles reported experiencing about a 25% increase in Chick-fil-A orders.

Another Chick-fil-A customer, Seth Amitin, shared that a meal that used to cost $16 now costs $20. The price change was monitored from a Chick-fil-A located in Hollywood, California.

The Need for Increase in Employee Wages

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While inflation is at its peak across the Nation, the cost of living has become more expensive than imagined. Chick-fil-A also sees the need to increase workers’ wages because many other companies are currently doing so.

This automatically left them no choice but to increase their price tags. In California, although the federal minimum wage is still at 7.25 per hour due to the recent cost of living, California restaurants have increased it to $20 per hour.

Chick-fil-A Is Yet To Address a New Price Increase

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Chick-fil-A, a private company, reportedly has 167 locations in California, and it’s quite difficult to know the exact prices of all of them. However, few customers have been able to identify hikes in the prices of their food from different locations.

Even though some of its customers are reacting to their sudden 10% increase, the company has yet to announce its new price tags publicly. Customers only learn when they patronize.

McDonald's To Lay Off Some of Its Workers

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It is not just Chick-fil-A that has currently increased its food menu prices. Most Restaurants in the United States have also followed this same approach. Recently, McDonald’s restaurants In California have also announced the likelihood of an increase in their prices.

Also, reports have it that McDonald’s plans to lay off some of their workers. Workers that will be affected are those cashiers at the registers as they plan to replace them with h AI-powered kiosks.

Middle-Income Americans To Consider Other Dining Choices

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Since most of these popular restaurants keep increasing their food prices, there is speculation about whether their customers will keep patronizing them or look for other alternatives.

A professor at Saint Mary’s College of California, Michal Strahilevitz, explained that Chick-fil-A’s sudden change in food prices could make middle-income Americans reconsider their dining choices. Those who want to keep patronizing them may cut back on their orders.

To Keep Increasing Menu Prices or Lay Off Workers

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As it stands, restaurants reported that the inflation and cost of living are affecting their businesses, and they have no choice but to increase the price of their menu.

They reveal that they are left with two major options to keep the business running and meet customers’ needs. They opine that they either lay off thousands of their workers or keep increasing the price of their menu.

Will Chick-fil-A Lose Customers?

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Chick-fil-A has reportedly lost customers in the past, not because of an increase in its menu price but rather because of political reasons.

Recently, Americans have expressed their dissatisfaction over the sudden increase in food prices in most fast-food restaurants, and some have spoken about boycotting them. In the case of Chick-fil-A, it is not certain if they’ll lose customers, but based on what other restaurants who have increased their prices before them have experienced, they are likely to lose some of their loyal customers as well.