Fast food prices are not as cheap as they once were.
Fast food is all about grabbing a quick and cheap bite, but those days are long past us. With inflation and ever increasing operational costs, major chains have steadily increased prices to keep up. While a drive-thru at McDonald's is still more affordable than a proper sit-down dinner, grabbing a combo meal isn't exactly a budget-friendly option anymore.
According to a Lending Tree survey of 2,000 Americans, a whopping 78% now consider fast food a luxury, not a convenience. One major chain even doubled its prices over the past decade, leading the pack in menu inflation.
So what’s driving these costs and will it get worse in 2025? Here’s a closer look at how fast food prices have shifted, which restaurants raised theirs the most, and what to expect as we head deeper into the year.
Fast food price increases
| Fast Food Chain Item | McDonald's Quarter Pounder with Cheese Meal | Four-piece McNugget Happy Meal | Popeye's 4-piece Chicken Dinner | Popeye's Popcorn Shrimp Combo | Taco Bell's Beefy 5-Layer Burrito | Taco Bell's Gordita Crunch |
|---|---|---|---|---|---|---|
| Price increase between 2014 and 2024 | 122% increase | 67% increase | 97% increase | 94% increase | 132% increase | 100% increase |
Source: FinanceBuzz
What fast food chains have increased their prices the most in the past decade?
In the last decade, McDonald's has increased its prices by a whopping 100% in the US, making it the most increased fast food chain in the country, according to information gathered by FinanceBuzz. But their menu prices aren't only increasing in the states. According to Spine Genie, McDonald's has increased their prices in Canada by nearly 140%.
In the US, a quarter pounder with cheese meal cost $5.39 in 2014 and in 2024, it cost $12, FinanceBuzz reports. The second and third restaurants with the most inflated prices were Popeyes and Taco Bell in the US and Panera and Wendy's in Canada. At Popeyes in 2014, you could snag the four-piece chicken dinner for $7. By 2024, that price rose 97% and now costs $13.79.
Taco Bell is one chain restaurant that inflated their prices the most in the past decade.
These results slightly differ from 2022 when Wendy's and Chick-fil-a had the highest inflation rate and Burger King's chicken fries were the number one inflated menu item across all chains.
According to LendingTree's new survey, 46% of participants said they now believe that prices at their local fast food restaurants are now in line with sit-down restaurants. Even more surprising is that 22% of those participants believe fast food was actually now higher priced in comparison.
What causes fast food inflation?
Inflation at fast food restaurants is a "multilayered phenomenon," Valerie Kilders, assistant professor in the Department of Agricultural Economics at Purdue University, told CNET.
Kilders cited increased minimum wages for low-wage workers and the "increase of general food prices" as two large factors contributing to rising fast food prices.
"Post pandemic, we saw that lowest wage workers, which include those that are typically working in fast food restaurants, saw the fastest growth in wages," Kilders explained, further adding that from January 2024 to January 2025 "cattle prices increased 20.6% and wholesale beef [increased] around 15%. Eggs are even up 183%, so we're seeing these big increases in just those two categories."
"The increased prices for the operators are passed on to the consumers," she added.
As egg prices continue to soar, economists point to bird flu as a contributor to the sky-high prices of eggs that we're seeing at grocery stores and on restaurant menus. This week, major US tariffs against Canada and Mexico went into effect under the Trump administration, and with them could come even more price hikes at the grocery store and beyond.
Although President Donald Trump has stated that the country that imports the goods will pay the implemented tariffs, or the tax on the items, economists have disagreed. According to the Tax Foundation, when the US imposes tariffs, US businesses pay the tariff tax to the US government. Similarly to fast food chains, when the company does not pay the increased prices they are facing, those prices get passed on to the consumer.
The 25% tariffs against Mexico and Canada began on March 4, and a previous 10% tariff on China has now doubled to 20%, according to the Associated Press. According to the US Department of Agriculture, in 2023, 72.5% of US agricultural imports came from Mexico. This included 25% of beverages, including beer and tequila, 14% of fruit, 13% of vegetables, 6% of avocados and more.
And 63.8% of the US's agricultural imports came from Canada, including 19% of animal products and 12% of fruit and vegetables.
According to EconoFact, the Trump administration's 2018 tariffs, which were then kept in place by the Biden administration, did not lower prices for Americans.
Will prices continue to rise at fast food restaurants?
"The short answer is, it's too soon to tell," Kilders said.
However, she does say that it's not just fast food chains increasing their prices. It's happening everywhere.
"If we look just generally at the increase [in the Consumer Price Index] for food away from home, that increase was about 3.4% over the last year, and there's not much of a difference between both full-service restaurants and limited-service restaurants," Kilder explained.
While it may seem that McDonald's is hiking its prices more than the Olive Garden or Chili's, that's not necessarily the case. Rather, when a notoriously cheap fast food restaurant raises prices, it's always going to be more apparent to the consumer.
As far as the future outlook on food prices, there are various factors that have to be taken into account.
"How are labor costs going to develop? Are we going to see additional increases in food input prices? Are we going to see any kind of interventions on the policy level that might influence all those factors that play a big role in how demand is going to develop," Kilders said, "and then, consequently, how supply and prices are going to develop."
According to the USDA's food price outlook, cited by Kilders, it is believed that consumption of food at home will increase around 3.3% over the next year, meaning that moreAmericans will opt to skip the drive through or sit-down restaurants and cook at home in an effort to save a few bucks
Ways to save in 2025
- Are Cheap Meal Kit Services Any Good? I Tested a Bunch to Find Out
- Thinking about Getting a Costco Membership? Here's How Much You Can Save
- How ChatGPT Transformed My Meal Planning and Saved Me Money
- Struggling to Save? This Expert Tip Can Boost Your Savings Even if Money Is Tight
- The Best Foods to Buy in Bulk, According to a Meal Planning Pro
