Many of the nation’s QSR chains are adjusting to inflation in food and labor costs.  In an attempt to remain competitive and to hold down menu prices, portion sizes are undergoing a “slim down”.  To reduce labor costs, many menu items and combinations are being placed on hold.  Surveys have indicated that consumers are resistant to recent price increases and are questioning value.  Reducing the number of nuggets in a serving, or cutting down on the size of burgers, will be noticed by diners although in many cases, the sides including fries can be either standard or supersized at an additional cost. Chains are also evaluating bundled offers and combo deals to maintain revenue.

During the past 24-months of COVID, consumers have learned to compare the value of servings. In many cases they are less inclined to pay for convenience and are more willing to prepare foods and consume snacks at home. 

In a recent investor call, McDonald’s noted a six percent average increase in menu prices and is anticipating inflation in food and ingredient costsduring 2022.

From the perspective of the U.S. poultry industry, “chicken wars” are still a reality and the breakfasttime servings continue to feature eggs extending in some chains to “all-day breakfasts”.