That’s the phrase The Wall Street Journal (WSJ) coined last week to characterize the reaction of Cali Fast Food fans to menu price rises last month. Prices have risen up to 10 percent since the new minimum wage came in…
Restaurant of the future: Optimized for walk-up, take-out, drive-thru and delivery service…
“I feel ripped off a little,” 79-year-old retired San Diego entrepreneur Greg LaVay told WSJ. He used to visit McDonald’s several times a month for dinner. But since the price hikes, he’s switched his allegiance to local fast-casual, sit-down restos.
And that pretty much sums up the reaction of many disappointed Fast Food Fans in California.
And things could still get worse as resto operators gain experience in the new economic environment.
The initial impact
A recent analysis from market research firm Datassential confirms sharp menu price increases by Cali locations of national chains including McDonalds, Chick-fil-A and Pizza Hut. Some have increased their prices as much as 10 percent since last fall. Others – notably Wendy’s – raised their menu prices as much as 8 percent on some items immediately after the $20 per hour minimum wage for Fast Food workers came in, April 1.
It’s only fair to note that Fast Food prices have been rising at all chains, across the continent. But California’s 10 percent far outpaces the national average of 5 percent for the same September, 2023 to April, 2024 period.
Countervailing moves
The Fast Food chains are just starting a massive transformation to what they call the ‘restos of the future’.
One critical component of those plans is to dramatically reduce the need for human ‘intervention’ in the reception, preparation and fulfillment of orders. In concert with that, virtually all chains plan to severely reduce – or eliminate completely – in-store dining. They’re concentrating instead on walk-up, take-out, drive-thru and delivery traffic. All those innovations designed to save money, and optimize profit.
Overarching the whole ‘modernization’ push is the employment of cutting-edge artificial intelligence and food prep automation systems. The first such implementation of AI was discovered last week by customers at a Wendy’s drive-thru. Reviews were mixed. Users quickly discovered that the new AI is easily stumped by non-standard orders. But you can be sure, the companies behind the technology will shore up any weak spots quickly. It’s new territory for all involved.
My take
There’s no doubt in my mind that the Fast Food chains will keep pushing their vision of the restos of the future. No matter what customers say. Or do. The chains have no choice, in the face of rising food and other operating costs. With no signs they’ll ever come down again. And the chains are already past the point of no return on the monumental project. They started planning years ago, and are too heavily invested in the concept to go back, or even change course now.
I mourn the loss of all those Fast Food jobs – opportunities that once gave teenagers their first taste of a real job. And taught them essential adult skills such as punctuality, teamwork and following established protocols.
For one thing… I think we, as consumers, will have to adapt our view of the Fast Food scene to accept the new realities.
AT the same time, the fast Food chains will have to start thinking outside the box, as they struggle to maintain their appeal to the younger, mobile market they’ve attached themselves to.
~ Maggie J.