McDonald's is losing its low-income customers

Causes of higher prices and inflation (disagreement)

• One camp argues inflation is primarily monetary/political (stimulus, money supply); firms raise prices because money is worth less.
• Another camp counters that large firms are opportunistically pushing prices far beyond cost increases, pointing at McDonald’s net margin roughly doubling over a decade.
• Others emphasize classic cost‑push factors: higher wages at the bottom, tight labor markets, minimum wage hikes, plus increased costs for beef, wheat, fuel, and global supply shocks (e.g., Ukraine war).
• There is no consensus on how much each factor (money supply, labor, input costs, “greedflation”) contributes.

Profits, wages, and inequality

• Several comments highlight rising profit margins, large stock buybacks, and high executive pay, arguing that blaming “labor costs” is misleading when corporate returns have surged.
• Counter‑arguments say even eliminating executive compensation would barely move per‑meal prices and that markets naturally allocate gains.
• Broader inequality and rent‑seeking (financial, real estate, monopolies) are seen as underlying why low‑income workers now struggle to afford “cheap” fast food.

Business model, margins, and target customers

• McDonald’s is repeatedly described as primarily a franchising and real‑estate company whose corporate margins don’t map cleanly to store‑level costs.
• Several note the shift up‑market: fewer dollar‑menu items, more automation/kiosks, higher‑margin “specialty” drinks, and reliance on apps, which effectively price‑discriminate.
• Some argue this deliberately abandons low‑income customers in favor of higher‑margin, middle‑income traffic; others question whether that strategy is actually working.

Customer experience and competition

• Many report worse cleanliness, slower service, confusing kiosks/apps, and botched orders, making McDonald’s feel neither “fast” nor cheap.
• In multiple countries, local diners or regional chains (Taco Bell, Cook Out, döner, independents) are seen as tastier and sometimes cheaper per calorie.
• Internationally, some say McDonald’s abroad is cleaner, cheaper, and better run than in the US/UK.

Fast food, health, and home cooking

• Some hope being priced out will push people toward home cooking; others say the reality is cheaper but even less nutritious options (instant ramen, junk groceries).
• Long subthreads debate whether healthy home cooking is actually cheaper once time, equipment, food deserts, and knowledge gaps are considered.
• Diabetes and other health costs are framed as a hidden, long‑term price of fast‑food‑heavy diets, especially for low‑income households.