What these consumers are paying for fast food, Dollar Menu staples

How much have prices risen on these fast food and comfort eats staples?

Yahoo Finance Senior Reporter Brooke DiPalma takes to the streets of New York to ask consumers how much their Dollar Menu and pizza orders now cost, and the factors they are noticing that are causing this drive up in prices.

Video Transcript

00:00 Speaker B

6:14 with taxes.

00:02 Speaker A

Remember the dollar menu? Well, believe it or not, McDonald's hasn't had that since around 2013. And nowadays, these fast food giants are leaning into both premium offerings and also low cost value offerings.

00:13 Speaker B

McDonald's, two double cheeseburgers, large unsweet iced tea. That comes out to about 6:14 with taxes.

00:20 Speaker C

I'd go out to pizza mostly.

00:22 Speaker D

I really love the dig in and it's been costing like $10.50.

00:27 Speaker E

Like most famous restaurant we have is uh McDonald's, around $15, I think. Yeah.

00:32 Speaker A

And on top of the value meals, you also have these limited time meal deals, and you also have in-app exclusives. I mean, just think about all the ones you've seen recently. McDonald's, the $5 meal deal and under $3. You also have Chipotle launching just a protein cup and Burger King saying do it your way. Now, there are several reasons why prices have gone up, including labor, transportation, food costs, and so much more. And that's why ultimately these fast food giants, as well as your casual dining restaurants, well, they have to raise prices.

00:54 Speaker A

At the same time, consumers are facing higher prices too. For the second time this year, gas prices are now above $4, and that's why these fast food giants are continuing to double down on value as well.

01:03 Speaker F

The oil, oil more expensive, that means everything more expensive.

01:07 Speaker G

Inflation has been out of control in a way that really hasn't been seen since the 1980s.

01:13 Speaker B

Well, you're talking to someone who's in agriculture. So I can tell you exactly what is driving those prices.

01:18 Speaker B

The land that beef is that cattle's being run on has gone significantly down. Also, a lot of farmers are getting out of the industry.

01:31 Speaker A

What we're hearing for so many people is that they're kind of changing the way that they're gravitating towards fast food and food in general. They're being a little bit more choosy about when and where they're going. But at the same time, they're still willing to pay up.

01:41 Speaker B

It's again, everything's simple supply and demand. The total number of head in the United States has gone down year over year. So that's what's driving beef prices up in the fast food industry.

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