McDonald's and other big brands warn that low-income consumers starting to crack

Original Article ↗ Hacker News Discussion ↗

Framing of Inflation (“Sticky,” “Greedflation,” Causes)

  • Some see “sticky inflation” as narrative spin following failed “transitory” claims.
  • Several point to “greedflation” in groceries and fast food, citing an FTC report that retailer margins have risen and remained elevated.
  • Others challenge this, noting:
    • The FTC’s metrics are nonstandard and don’t define “excessive.”
    • Higher margins can still be consistent with legitimately higher input costs.
  • One camp stresses money supply and politics as core drivers of inflation.
  • Another emphasizes complexity: money velocity, supply shocks, and sector-specific effects make simple money-supply explanations incomplete.

Role of Corporate Greed vs Market Dynamics

  • Critics argue record profits and rising prices show companies are exploiting an “inflation” excuse to push margins and then avoid lowering prices.
  • Skeptics say “greed” is constant and not an explanatory variable; they prefer mechanisms like market power, reduced price sensitivity, or demand shifts (e.g., trading down from pricier restaurants).
  • Disagreement over whether “greed” adds insight or is just moral labeling.

McDonald’s Prices, Value, and Alternatives

  • Many report sharp price increases (e.g., ~2x for certain items or meals), saying McDonald’s is no longer “cheap,” sometimes comparable to casual restaurants.
  • Others note regional variation and still see McDonald’s as cheaper than sit-down options.
  • Some have shifted away from more expensive chains (e.g., Five Guys) toward cheaper options, or to grocery-store prepared foods.

User Experience and Operations

  • Strong complaints about kiosks: slow, upsell-heavy UI, awkward ergonomics, unreliable payment.
  • A minority likes kiosks for customization and less social friction.
  • Discussion that McDonald’s corporate pushes complex menus, equipment, tech, and remodels onto franchisees, raising costs that feed into prices.
  • Contrast drawn with In-N-Out’s stable, simple model: limited menu, no delivery apps, traditional real estate, reportedly better margins and happier staff.

Impact on Low-Income Consumers & Society

  • Several say even “cheap junk food” is becoming unaffordable, a sign of broader economic stress and inequality.
  • Others highlight rising labor, rent, and input costs behind restaurant prices, and question what kind of structural change (wages, rents, profits, taxation) people actually want.