Supply chain shortages and labor challenges have put increased pressure on restaurants across the nation. According to the Bureau of Labor Statistics, the food away from home index rose 6.4 percent in 2021 which is the highest increase since 1982. In order to handle these pressures, restaurants such as Del Taco and 4River’s Smokehouse have launched special “Inflation Menu’s,” which showcase a variety of options with better meal values.
With food and paper-goods costs rising over the last 12 months, McDonald’s has been able to stand strong due to their reputation of providing value menu items. “What helps us from a research standpoint is the way consumers view value and the perspective of value,” McDonald’s CEO Kevin Ozan stated during the company’s Q4 earnings call in January. “And I think in 2022, that will continue to be really important as inflation is hitting customers potentially harder than it’s hit people in a long time. And so, we’re very cognizant of making sure that our value proposition continues to be strong.”
Additionally, Starbucks and Chipotle were compelled to take pricing action towards the end of 2021 but have not seen any resistance from customers just yet. Chipotle’s chicken burrito is still less than $8 across most of the country’s nationwide footprint, which still remains to be a great bang for your buck.