Customers of one of the United States’ best-loved fast-food restaurants are shocked by the substantial increase in the price of menu items. Chick-fil-A has raised their prices by over 20% in just two years, leaving customers looking for budget meals elsewhere.
Frequent visitors to the chicken spot were made aware of a 15% price increase back in 2022. Yet, due to the increasing inflation witnessed across the states, Chick-fil-A was forced to up its prices by a further 6% last January, resulting in an overall increase of 21% in the previous two years.
With such a rise in prices, the once budget-friendly option now has many customers looking for a bargain meal elsewhere. Newsweek spoke with Aaron Anderson, CEO of the consulting firm Axxeum Partners. He believes the rise in both the price of transportation and ingredients due to inflation has contributed significantly to Chick-fil-A’s recent price hike.
With competition increasing in the job market and ever-increasing minimum wages across the board, Aaron argues this has left restaurants such as Chick-fil-A with no option other than to raise their prices.
“There’s been a significant rise in labor costs due to a more competitive job market and increased minimum wages in many areas. Restaurants are spending more on wages and benefits to attract and retain staff,” said Anderson.
Aaron alludes to the idea that long-term customers of Chick-fil-A may begin to look for cheaper alternatives to fast food, especially families with low incomes. “Higher menu prices can lead to reduced frequency of visits or spending per visit by consumers. Some may switch to lower-priced alternatives. However, Chick-fil-A’s strong brand loyalty might mitigate this impact to an extent, he said.
Michal Strahilevitz, the director of the Elfenworks Center for Responsible Business, also holds this opinion. He believes customers will begin to look for cheaper alternatives when it comes to fast food.
“Many customers might reconsider their dining choices due to financial constraints, exacerbated by the rise in layoffs and the general rise in inflation and costs beyond Chick-fil-A,” Strahilevitz told Newsweek.
However, even if many of their long-term customers continue to eat at the fast food restaurant, it’s unlikely they’ll eat at Chick-fil-A regularly due to the increased prices.
Sam Zietz, the CEO of self-ordering restaurant tech company GRUBBRR, believes that restaurants must do a better job at ensuring their prices remain low even during times of hardship.
“Restaurants must find ways to offset the costs though, without passing it all onto the customer, or they risk losing their customers,” Sam Zietz told Newsweek during an interview.
Zietz believes the problem can be tackled in ways other than raising the prices. He argues that labor costs could be dramatically slashed if Chick-fil-A was to begin using more self-ordering kiosks.
Customers of Chick-fil-A aren’t the only ones to feel the effects of inflation at their favorite restaurant. Pricelisto, an organization that observes changes in fast food menu prices, claims that 2022 fast food prices rose by 13% across the board.
