🎨 Sorry, Fast Food Will Never Be Cheap Again

Hey, it’s Steve from Feasible Creative — your weekly shortcut to smarter money moves.

It’s no secret that fast food has become more overpriced and lower valued than it once was. Yes, prices have risen due to corporate greed, inflation, and supply chain issues, but that explanation is incomplete.

What most people don’t realize is there’s a deeper shift happening that’s quietly destroying the industry itself.

Today, I’ll explain what’s going on and how fast food companies are responding.

(Full breakdown in the video below.)

When we make decisions, we often run a quick mental math problem whether we realize it or not.

The math answers: “is this worth it?”

Explained simply, we analyze the benefits versus the cost (i.e. what you get versus what you pay). This is known as the value equation.

For a long time, fast food crushed the value equation. Things were quick, convenient, predictable, and most importantly, cheap. The food wasn’t amazing, but the low prices were.

This is no longer true. Today, the benefits are the same (if not worse), while costs have skyrocketed. Basically, the value equation broke.

Now, instead of directly fixing the problem, these companies are applying a band-aid approach to preserve margins.

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Have you noticed how aggressively fast food chains are advertising? Every time I watch TV, I see a new promotion or limited time offer.

Not surprisingly, most of these campaigns are targeting lower pricing. Generally this type of marketing works, but with fast food there remains a problem.

This kind of chaotic, promotion-heavy marketing typically only creates short-term traffic (rather than loyal customers). Said another way, this marketing still doesn’t solve the underlying value equation problem where the pricing no longer makes sense.

Fast food may never return to what it used to be, meaning our spending habits need to adjust.

Instead of buying a disappointing meal, choose to cook at home. If you’re set on going out to eat, local takeout spots often cost a similar amount while delivering better quality.

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Fast food has become overpriced and inconsistent, destroying the value equation that once made it worth it. Unless prices are pulled down significantly, I don’t see a strong rebound for the industry.

Do you still buy fast food? Hit reply and let me know!

Talk Soon,
Steve

Disclaimer: The content provided in this newsletter is for informational and educational purposes only. It is not intended to be a substitute for professional financial advice. Please consult with a financial advisor before making any financial decisions. This newsletter may contain affiliate links, which means I may earn a commission if you make a purchase through these links, at no extra cost to you.

Empower Personal Wealth, LLC (“EPW”) compensates Feasible Creative LLC for new leads. Feasible Creative LLC is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.