Rising prices are hitting Americans where it hurts: the drive-thru.
Driving the news: Fast food menu prices are up 7.2% year-over-year, according to a report released this week by the National Restaurant Association. That’s the biggest jump since 1981.
Prices at full-service restaurants are even higher — they’ve gone up 8%, the biggest jump of any restaurant category.Ballooning menu prices are being driven by the rising cost of food and labor, according to the report.
It cites a 15.1% year-over-year increase in the Producer Price Index, which measures the cost of domestic goods, as well as a 12.1% increase in average hourly earnings for restaurant employees.🍔 The Big (Mac) picture: McDonald’s did not respond to requests for comment, but data from the Big Mac Index — which has been measuring the price of a Big Mac since the year the Oprah Winfrey Show debuted — shows that the price of a Big Mac nationwide rose 7% from 2020 to 2021.
Big Mac prices have risen by a whopping 40% in the past 10 years, according to the index.Zoom in: Menu prices vary across the country, and even within cities.
So we decided to make our own Big Mac Index, showing the price of McD’s flagship burger in all of our Axios Local cities — the 14 current ones and our 11 coming-soon ones, including my own. And we compared those prices to each town’s minimum wage.Details: Austin, Texas —where the minimum wage is $7.25 an hour — is home to the cheapest Big Mac in the Axios Local world at $3.75;
But 200 miles down the road, Dallas — with the same minimum wage — a Big Mac is selling for $5.69.Seattle, Wash. — where the minimum wage is $17.27 an hour — has the priciest Big Mac we found, at $6.39.And in the most expensive cities in the country:
A Big Mac in San Francisco, where the minimum wage is $16.32 an hour, is $5.79In New York, where the minimum wage is $15 an hour, a Big Mac can be found on Broadway for $4.95 But in my town of Richmond, Va. — where the minimum wage is $11 an hour — I’m paying $4.89 for a Big Mac — just 10 cents less than folks in New. York. City. And I’m furious about it. 🍟 Reality check: These prices are for the burger-only — no fries. So what’s the point?
🗞 This article is by Axios Richmond’s Karri Peifer! Subscribe to the Axios Richmond newsletter (launching May 31!).
Source : Axios