With increased wages comes increased purchasing and spending power. So naturally, fast-food restaurant chains are now thinking about raising their prices so they can also enjoy the benefits of this renewed, stronger economy.
Earlier this month during the ICR Conference in Orlando, restaurant chains like Habit Burger, Chipotle, and Texas Roadhouse mentioned increasing prices.
Last year, food prices increased by almost 3 percent, and this year they will rise 2 to 3 percent more, according to the Department of Labor. Prices are rising because wages are rising as simple as that.
Since the start of 2019, over 20 states have already raised their minimum wages. And earlier this week, the House of Democrats introduced a bill that looks to raise the minimum wage to $15 per hour.
Chains like Chipotle have even hired consultants to analyze the prices of every single item on their menu. However, Chipotle CEO Jack Hartung says they’re still “behind on raising prices” and that they’re also trying to make Chipotle “accessible to everybody”.
Denny’s CEO John Miller even talked about how everyone in the fast-food game is trying to undercut competitors’ prices. But keeping the prices low is not sustainable, so it won’t last forever.
We believe prices should at least stay the same. Yes, the economy is stronger, unemployment rates are lower, and we’re all thrilled about it. So please let us enjoy it and also help us save more for our retirements. Please!
But in the meantime, expect to pay more for pizzas, burgers, sandwiches, and burritos.