Chart of the Week: Prices increased faster for cheaper menu items
Budget-conscious offerings saw a substantial 21% increase in their prices.
UK’s fast-food chains paint an interesting picture of how prices are evolving, and impacting both dine-in and delivery customers.
One standout trend is the varying degrees of price increases across different categories of items. The most significant surge is seen among those budget-conscious offerings priced at less than 5 GBP, these items witnessed a substantial 21% increase in their prices.
For frequent patrons of such options, this might signal a change in their dining habits or budget considerations.
Items falling within the 5-15 GBP range experienced a more modest 13% price increase. This category often encompasses the core menu items, including combo meals and popular favourites. At the higher end, for premium fast-food items priced above 15 GBP, the price increase was lower, at 12%.
Most chains raised their prices for specific items only, rather than applying increases across the entire menu. Over half the menu experienced price hikes exceeding 15%, whilst only one-fifth of the items managed inflation of less than 5%.
“The highest price growth impacted less significant and cheaper items, like extras, breakfast items, sides, and snacks. This pricing trend likely prompted consumers to reduce the number of items in their orders and to forego those less essential options. Where each specific item faced a notable price hike, several chains have reported their check is growing below inflation due to a reduction in order quantities.” Maria Vanifatova, CEO of Meaningful Vision, stated.
Read the whole study here.