The inflation has seen prices affecting people and businesses alike, with burger chains suffering from losing clients. According to the U.S. Bureau of Labor Statistics, price jumps have been reaching spikes last seen 40 years ago.
Forbes reports have seen incredible increases in the past 12 months for electricity (up 12%), utility gas services (up 30.2%), and meats, poultry, fish, and eggs (up 14.2%).
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While the increases can be intimidating, each is necessary, leaving people with no choice but to make sacrifices. Unfortunately, on the other side of the spectrum, burger chains have also taken heavy losses with fewer customers coming in.
Data company Placer.ai reports that McDonald’s has fared better than other chains. Compared to last year, visits were up in April and May by 6.3% and 3.8%, respectively.
The burger chain also saw more foot traffic for the past half-year compared to last year, giving people the idea that McDonald’s changes in 2021 are paying off, particularly raising the bar on its celebrity collaboration and loyalty program.
On the other hand, Wendy’s and Burger King have been struggling with foot traffic, especially with the current economic climate.
Although yearly visits were up, the two chains are lagging behind their 2019 traffic. Compared to May of that year, Wendy’s and Burger King dropped by 12.1% and 12.4% last month.
Speculations led people to believe that Wendy’s 6% menu price increase last year may have contributed to its current endeavors. Additionally, the chain confirmed plans to increase the menu by another 5% in 2022.
“We did talk about taking 5%-plus pricing,” said Todd Penegor, president and CEO of Wendy’s. “We’ve got to find that point where we can balance passing on some price but still being of relative value to the consumer.”
Meanwhile, Burger King’s largest franchisee Carrols Restaurant Group is facing similar struggles.
“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,” said CEO Paolo Pena. “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.”
Regardless, Placer.ai reports that regional burger chains like In-N-Out Burger, Whataburger, Sonic Drive-In, and White Castle have been seeing a growth in visits this year.
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Opinions expressed by NY Weekly contributors are their own.
