There are various reasons why fast food became such a phenomenon first in the United States, then worldwide, but the low cost of the meals is one of the main ones. From students to people on their lunch break to busy parents looking for something to feed their kids, fast food chains have long been the answer.
Those low prices have become much harder for places like McDonald’s and Burger King to hold. While chains are doing their best to offer lower-cost meals, the days of being able to feed yourself for under $5.00 seem over.
The Average Price of a Combo Meal Has Risen Dramatically
Pretty much any fast-food place offers a series of value meals. These are intended to allow customers to have their favorite entree along with a side item and a drink. You’re supposed to be able to save extra on these meals.
Combo meals aren’t so inexpensive anymore. According to a recent survey, the average cost of a combo meal has now risen to more than $11.50. This is impacted by where you live. It could cost $2 more in a city like San Francisco or $2 or $3 less in more rural areas.
Casual Sit-Down Restaurants Are Providing Plenty of Competition
Over the last decade, casual sit-down restaurants like TGI Fridays and Applebees have struggled to keep locations open around the country. In order to keep open, many of them have lowered their prices dramatically on some items.
That means that they can offer pretty close prices to fast food chains on items like cheeseburgers or chicken fingers. Once the customers are inside, they can sell them appetizers or a dessert, or drinks to raise the price of their checks. But if someone is getting just an entree and a soft drink, the cost can be quite low.
Pizza Chains Are Competing Too
It is not only sit-down restaurants that are making life hard on fast food chains, but chain pizzerias are also providing tough competition by offering meal packages with pizza and other menu items.
A place like Domino’s offers a pick two or more items for $6.99 deal, which includes medium pizzas, chicken options, bread options, and salads. For a family with a couple of children, this could be a more financially sound option than ordering a bunch of fast food combo meals.
Chains Spent Decades Upgrading Customer Experience
Following criticism about the quality of the food they were serving, many fast food establishments have invested several years in upgrading their spaces and menus to create a more enjoyable experience for customers.
It became normal to see Burger King offer steak burgers made with higher-quality beef or McDonald’s announcing in 2003 that its nuggets would be made from 100% all-white meat chicken. Over time, it seems that customers don’t necessarily want higher quality from fast food if it comes at a cost.
Labor Costs are Also Affecting Prices at Fast Food Chains
For decades, many fast food restaurants have relied on hiring lower-cost labor, often in the form of teenagers working an after-school job. However, many states have passed state minimum wage laws that require companies to pay employees higher than the national minimum wage. As a result, many fast food restaurants have had to raise prices.
Chains are also facing competition from fast-casual places like Chipotle and Shake Shack. Many newer employers are providing benefits that aren’t common, and fast food chains have had to up their game to retain employees.
Consumers Have Let the Chains Know That They Are Fed Up
Customers can let companies know that they are not happy about something in a variety of ways, but the loudest way to do so is with their wallets. The numbers show that while the prices have risen, sales for the most prominent fast chains have gone down.
It is clear to see in 2025 that chains have been responding to the demand for more food for less money. While restaurants aren’t typically lowering prices on their most popular items, they are offering numerous deals, both short-term and on a regular basis.
People Are Cooking More For Themselves
Driven in part by people having no other choice during the COVID-19 pandemic, people are cooking at home more than they have in the past. That is especially true among Millennials and people in Generation Z, as studies show that they cook at home more than older generations.
Staying at home during the pandemic showed a lot of people that not only is cooking at home easy and fun, but it can also save a lot of money. And with inflation rising, people are looking to cut expenses, and that could often mean eating only at home.
Consumers Don’t Mind Spending More Money on Higher Quality Food
There are plenty of fast-casual restaurants that are thriving in the current environment and also expanding into other territories. And meals at these restaurants typically cost no more than the same thing at a fast food restaurant. Even better, you get to sit down and relax while you eat.
Many of these fast-casual restaurants also offer higher-quality ingredients and can often let consumers know exactly where their food is coming from. The huge popularity of places like Shake Shack, Five Guys, and In-N-Out Burger has shown that shoppers are willing to shell out more money on higher-quality food.
Conclusion
It is currently a very tough environment for fast food restaurants. Customers today are demanding that any food that they pay for be top quality. At the same time, many of these consumers are demanding that restaurants achieve that feat while keeping their prices low.
Economic factors will make it so that it will be tough for fast food to go back to its old ways. Companies now have to pay their workers wages that will make it nearly impossible to bring back $5 burgers. But consumers should always keep their eyes out for special deals and benefits.