There was a time when “fast food” was synonymous with “cheap food,” but that’s not always the case now due to rising inflation. Sure, getting dinner at a drive-through still is cheaper than sitting down at a steakhouse but prices soared in 2024 at some of the most well-known fast food chains, making it less affordable than in past years.
One restaurant in particular doubled its menu item prices in the last decade. According to a survey conducted by Lending Tree, which surveyed 2,000 Americans, 78% of participants say they now view fast food as a luxury, rather than a way to get a quick and cheap bite to eat while on the go.
The question is, will those fast food prices continue to rise into 2025? Here’s everything to know about fast food inflation, including which chains hiked up their prices the most last year and what may be on the horizon.
Fast food price increases
| McDonald’s | Popeyes | Taco Bell | |
|---|---|---|---|
| Price increase from 2014 to 2024 | 100% | 86% | 81% |
Source: FinanceBuzz
What fast food chains have increased their prices the most in the past decade?
In the last decade, McDonald’s has increased its prices by a whopping 100% in the US, making it the most increased fast food chain in the country, according to information gathered by FinanceBuzz. But their menu prices aren’t only increasing in the states. According to Spine Genie, McDonald’s has increased their prices in Canada by nearly 140%.
In the US, a quarter pounder with cheese meal cost $5.39 in 2014 and in 2024, it cost $12, FinanceBuzz reports. The second and third restaurants with the most inflated prices were Popeyes and Taco Bell in the US and Panera and Wendy’s in Canada. At Popeyes in 2014, you could snag the four-piece chicken dinner for $7. By 2024, that price rose 97% and now costs $13.79.
These results slightly differ from 2022 when Wendy’s and Chick-fil-a had the highest inflation rate and Burger King’s chicken fries were the number one inflated menu item across all chains.
According to LendingTree’s new survey, 46% of participants said they now believe that prices at their local fast food restaurants are now in line with sit-down restaurants. Even more surprising is that 22% of those participants believe fast food was actually now higher priced in comparison.
What causes fast food inflation?
Inflation at fast food restaurants is a “multilayered phenomenon,” Valerie Kilders, assistant professor in the Department of Agricultural Economics at Purdue University, told CNET.
Kilders cited increased minimum wages for low-wage workers and the “increase of general food prices” as two large factors contributing to rising fast food prices.
“Post pandemic, we saw that lowest wage workers, which include those that are typically working in fast food restaurants, saw the fastest growth in wages,” Kilders explained, further adding that from January 2024 to January 2025 “cattle prices increased 20.6% and wholesale beef [increased] around 15%. Eggs are even up 183%, so we’re seeing these big increases in just those two categories.”
“The increased prices for the operators are passed on to the consumers,” she added.
As egg prices continue to soar, economists point to bird flu as a contributor to the sky-high prices of eggs that we’re seeing at grocery stores and on restaurant menus. This week, major US tariffs against Canada and Mexico went into effect under the Trump administration, and with them could come even more price hikes at the grocery store and beyond.
Although President Donald Trump has stated that the country that imports the goods will pay the implemented tariffs, or the tax on the items, economists have disagreed. According to the Tax Foundation, when the US imposes tariffs, US businesses pay the tariff tax to the US government. Similarly to fast food chains, when the company does not pay the increased prices they are facing, those prices get passed on to the consumer.
The 25% tariffs against Mexico and Canada began on March 4, and a previous 10% tariff on China has now doubled to 20%, according to the Associated Press. According to the US Department of Agriculture, in 2023, 72.5% of US agricultural imports came from Mexico. This included 25% of beverages, including beer and tequila, 14% of fruit, 13% of vegetables, 6% of avocados and more.
And 63.8% of the US’s agricultural imports came from Canada, including 19% of animal products and 12% of fruit and vegetables.
According to EconoFact, the Trump administration’s 2018 tariffs, which were then kept in place by the Biden administration, did not lower prices for Americans.
Will prices continue to rise at fast food restaurants?
“The short answer is, it’s too soon to tell,” Kilders said.
However, she does say that it’s not just fast food chains increasing their prices. It’s happening everywhere.
“If we look just generally at the increase [in the Consumer Price Index] for food away from home, that increase was about 3.4% over the last year, and there’s not much of a difference between both full-service restaurants and limited-service restaurants,” Kilder explained.
While it may seem that McDonald’s is hiking its prices more than the Olive Garden or Chili’s, that’s not necessarily the case. Rather, when a notoriously cheap fast food restaurant raises prices, it’s always going to be more apparent to the consumer.
As far as the future outlook on food prices, there are various factors that have to be taken into account.
“How are labor costs going to develop? Are we going to see additional increases in food input prices? Are we going to see any kind of interventions on the policy level that might influence all those factors that play a big role in how demand is going to develop,” Kilders said, “and then, consequently, how supply and prices are going to develop.”
According to the USDA’s food price outlook, cited by Kilders, it is believed that consumption of food at home will increase around 3.3% over the next year, meaning that moreAmericans will opt to skip the drive through or sit-down restaurants and cook at home in an effort to save a few bucks
Ways to save in 2025
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