Food Networks

What’s behind high food prices?

The official super PAC supporting former President Donald Trump launched a new website called the “Biden Mart,” where users can compare grocery prices between the current and previous administrations.

According to the most recent Consumer Price Index report from the Bureau of Labor Statistics, the food index – which includes grocery and restaurant prices – did not change from January to February, but was up just over 2% from the year before.

Grocery prices, specifically, were unchanged over the month but up 1% from a year ago. Meanwhile, food away from home was up 0.1% from the month before, but up 4.5% since last year.

There are several factors at play when it comes to food prices, including ongoing supply chain issues, higher labor costs and high wholesale prices, which are up more than 22%. Additionally, the US is dealing with the smallest cattle inventory since 1951.

Fast food is something many Americans love for its convenience and affordability, however it is not as budget friendly as it is used to be.

A recent study from Finance Buzz found that between 2014 and 2024, fast food menu prices went up anywhere between 40% and 100%, a bigger increase than inflation, which rose 31% in that time period.

McDonald’s raised prices the most of all the major fast food chains, with prices at the Golden Aches at least doubling since 2014 — with an average price increase of 100%.

Taking a look at some of the most popular menu items: a McChicken used to cost $1, now it costs $3, which is a 200% increase; a McDouble used to cost $1.19 but now it’s $3.19; and a medium fry was $1.59 but it’s now $3.79.

Popeyes, Taco Bell and Chipotle have also raised prices by at least 75%.

Some chains managed to keep prices at bay, but the list is short. In fact, Subway and Starbucks are the only two that increased their prices by less than 50%. Some drinks at Starbucks – like the Caramel Macchiato – are actually a better deal now than they were ten years ago.

Restaurateur and food personality Andrew Zimmern explained and elaborated the increase in fast food prices to The National Desk last month, citing decreases in supplies of animals, grains, producers and other agricultural due to climate change — especially for beef and tomatoes — as well as increased costs to agriculture.

One of the other major aspects is the way low unemployment numbers are encouraging employers like McDonalds and Chipotle to offer better wages and hiring benefits to prospective employees to lure necessary labor into those positions.

“It’s harder for people to keep and maintain workers and there are fewer out there willing to take a very low wage, which was typically the home of the fast-food industry,” he noted.

One of his ultimate conclusions was that Americans in particular are simply addicted to low prices, especially for traditionally salt, sugar, and fat-ladened cheap fast-foods, and that the price increases at the drive-thru are endemic of a larger issue.