McDonald's and other big brands warn that low-income consumers starting to crack
Rising prices at McDonald’s and other major brands are prompting worries that low‑income consumers can no longer afford even traditionally cheap fast food. Commenters argue over whether “sticky” inflation is mainly driven by money supply, supply shocks and wage increases, or by corporate “greedflation” and record profit margins, citing recent FTC findings on elevated grocery retailer profits. The conversation broadens into how menu complexity, tech mandates, higher rents, and growing inequality feed into food costs, and what happens when a large share of the population is too squeezed to sustain consumer demand.
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.