High prices in grocery stores are driving consumers in the USA to spend at fast food restaurants. Food inflation rose 11.2 percent in September, forcing many consumers to purchase from fast food value ranges instead of buying whole meals or groceries.
Even though Mcdonald's prices are up an average of ten percent in the USA, CFO Ian Borden said its share of low-income customers has increased. Customers are making the most of the loyalty program and affordable menu. This was a trend also seen during the financial crisis of 2008 and 2009, when food inflation rose six percent.
The inflation gap between groceries and restaurants in the USA has not been this large since the 1970s
Chipotle has reported an increase in higher-income customers in its business, and Burger King has seen more customers redeeming coupons and loyalty rewards.
