Fast-Food Restaurants Fight to Keep Customers as Food and Wage Costs Spike

A customer waits to order food at a McDonald's fast-food restaurant in Miami on July 26, 2022.

‘Restaurant owners are really stuck between a rock and hard place,’ says economist Thomas Savidge.

“Costs don’t always get translated in menu prices,” Savidge said.

At some point, however, customers will question the value of fast food, compared to alternatives such as full-service restaurants or eating at home, industry experts say.

Seven states—Alabama, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Wyoming—have no state minimum wage, although in those states, the federal minimum applies.

But ultimately, there’s going to have to be some painful choices made.” The more obvious options for fast-food restaurants are higher prices, smaller portions, or less staff, which often means longer lines and a less pleasant dining experience, he said.

And beyond the struggle to keep menu prices down, there is the pressure on fast-food restaurants to provide meals with the same speed and efficiency, even as they try to cope with staffing issues. 

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