A great analysis by Fox2 KTVU: A recent survey by LendingTree reveals that nearly 80% of Americans now consider fast food a “luxury” due to rising prices. The survey found that half of the respondents view fast food as a luxury because of financial struggles, particularly among those earning less than $30,000 a year (71%), parents with young children (58%), and Gen Zers (58%).

Although three-quarters of Americans typically consume fast food once a week, 62% have reduced their frequency due to high costs. Many believe fast food should be cheaper than home-cooked meals, yet 75% say it isn’t. Nearly half (46%) report that fast food costs are comparable to local sit-down restaurants, and 22% even find it more expensive.

Fox2 also noted that the Federal Reserve Bank of St. Louis fast-food prices have significantly outpaced inflation, with costs up 41% since 2017 compared to a 35.9% rise in the consumer price index. Dan O’Donnell from the MacIver Institute highlights that basic items like McDonald’s cheeseburgers and Chick-fil-A nuggets have seen price increases of up to 200% in less than five years, severely impacting lower- and middle-class families who rely on affordable meals.

In response to the rising costs, 56% of survey respondents now prefer making meals at home. This shift has prompted global chains like McDonald’s and Starbucks to offer more promotions to attract lower-income customers. Wendy’s introduced a $3 budget-friendly breakfast meal, and McDonald’s plans a $5 combo meal for a limited time in June. These efforts aim to bring back customers increasingly dining at home due to the cost-of-living crisis.