As the supply chain has affected the cost of fast food staples (such as chicken, eggs and pork), prices in many chains have increased throughout the year.
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For most of 2021, experts warned that commodity prices would be rising.
Supply chain problems disrupted the availability of many products, from chicken wings to champagne, and inflation is also affecting. In 2022, the inflation rate is projected to increase by 2.30%.
In December, studies revealed that both eating at home and in restaurants has become more expensive. But fast food, a very popular food in the United States, is also taking a hit.
To be clear about the severity of the problem, it should be noted that Little Caesars increased the cost of its Hot-N-Ready pizzas for the first time in 25 years, from $ 5 to $ 5.55. Krispy Kreme raised prices in 2021 and plans to do so again soon. Likewise, the fast food chains with the most significant price increases were Taco Bell, McDonald’s, Dunkin ‘, Chipotle and The Cheesecake Factory.
Taco Bell, had a 10% increase in prices overall, was the biggest spike in prices, followed by McDonald’s and Dunkin Donuts which increased their prices overall by 8%.
Given that eating in restaurants has become a bit more dangerous due to the risk of contagion, and cooking at home can become monotonous, fast food chains have become very popular in these times of pandemic. And there were more families that went to these fast food chains in 2021 than in 2020 and 2019.
While many chains adapted to the needs of the pandemic, offering more contactless options to accommodate social distancing and other health guidelines, could not prevent rising costs and staff shortages.
As the supply chain has affected the cost of fast food staples (such as chicken, eggs and pork), prices in many chains have increased throughout the year. According to the Bureau of Labor Statistics, overall restaurant prices increased 7.1% compared to last October.
The supply chain, which is basically the way products are transported from producer to consumer, has shrunk during the pandemic, the cost of transporting goods has increased, there is a shortage of labor to complete transportation and ports they are congested due to various logistical problems. These factors increase production costs, which directly translates into higher prices for the consumer.
The pandemic has also affected the demand for workers in the fast food chains themselves. And it is that, throughout the country, nearly 20 million workers have left the U.S. workforce since April 2021.
Many restaurant employees used the increased demand for workers to negotiate better working conditions and wages. The lack of workers and the increase in the cost of paying workers have also impacted companies.
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