Fast Food Chains Feel the Heat as Lower Income Customers Cut Back on Eating Out

Lower income consumers are cutting back on fast food purchases as prices rise, worrying fast food executives. Roughly 25% of people making under $50k are eating less fast food.

Food prices overall rose 20% from 2021 to 2023, the fastest increase on record, squeezing household budgets.

Chains are relying more on targeted discounts through loyalty apps rather than broad, across-the-menu discounts they previously used to attract budget shoppers.

Fast food companies are less likely to prioritize traffic over profits like they did a decade ago.

Some chains like Taco Bell are still seeing strength with low income consumers, but most are seeing declines.