Since their introduction in the 1970s, kids' meals have been a staple of fast food menus. For kids, it's the thrill of getting a tasty meal and a toy, while for parents, it's the convenience of a quick and affordable option. However, how inflation increases, the cost of these meals is far from what it once was. In fact, kids' meal prices have risen significantly over the past decade, with some chains seeing price increases well above the national inflation rate, according to a new analysis from FinanceBuzz.
FinanceBuzz research shows that, on average, children's meal prices have risen by 43% over the past 10 years, compared to 33% national inflation rate. Popeyes leads the franchise pack, raising children's meal prices by 62%, nearly double the rate of inflation. Other franchise chains, such as Jack in the box, sound and McDonald's, have raised prices by more than 50% over the same period.
“In general, menu prices have increased due to increased commodity and labor costs,” Erik Herrmanna partner in Capital Springsaid an investment firm specializing in food service The entrepreneur. “Both of these input costs have increased dramatically in the last 10 years. Minimum wage in California it went from $9 an hour to $20 an hour.”
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Meanwhile, The dairy queenWendy's, Burger King and Culver's managed to keep price increases lower than the inflation rate. Dairy Queen raised kids' meal prices by 21% — the smallest increase among the 12 chains studied.
A “kid's meal” though. value war“It won't happen for a few reasons,” Herrmann says. First, many restaurants offer a “kids eat free” promotion on slower days (usually Monday through Thursday), where kids can eat free with the purchase of a grown-up food promotions encourage parents to eat out and spend more while feeling like they're getting good value for their kids' meals.
“Also,” adds Herrmann, “kids' meals are generally higher food costs for restaurants, so discounting them would make them less profitable. Restaurant brands are more apt to discount other menu items to drive traffic and compete with other restaurants that discount children's “meals”.
Read more: FinanceBuzz
