Almost 80 percent of Americans now consider fast food a luxury good due to the high prices caused by inflation, a new survey found.
As a result, Americans are eating out less, which has set fast-food restaurants scrambling to find ways to bring customers back.
LendingTree recently conducted a survey of 2,000 American adults, asking about their views and buying habits when it comes to fast food.
The survey found that although three in four Americans typically have fast food once a week, 62 percent said they're dining out less due to rising prices. Increasing costs on menus have surprised 65 percent of Americans in the past six months, according to the respondents.
Nearly 80 percent said fast food buys were a luxury due to the increased cost of meals. Half of the respondents said they view fast food as a luxury specifically because they're struggling financially. For Americans making less than $30,000, 71 percent considered fast food a luxury, as did 58 percent of parents with young children.
Americans by and large — 67 percent — think fast food should be cheaper than eating at home, but 75 perent said that isn't the case anymore.
Almost half of the respondents said that fast food, in their estimation, costs nearly as much as eating out at a typical sit down restaurant. More than half of the respondents — 56 percent — said if they want a go-to, easy and inexpensive meal, they just cook at home.
Inflation appears to have pushed even fast food out of the reach of many Americans.
But it's not just Americans struggling financially who are eating out less; 52 percent of Americans making $100,000 or more a year said they're also visiting fast food less.
That has led to an overall decrease in customers. According to the survey, 62 percent of respondents said they were eating out less because of the increase in prices.
"Across almost all major markets, industry traffic is slowing," McDonald's CEO Chris Kempczinski told analysts in April, according to Fox Business. "We know our customers are looking for reliable everyday value now more than ever."
McDonald’s has responded by announcing a new $5 value meal offering coming this June, and Wendy's has tried to bring back customers with a $3 breakfast deal.
Andy Puzder, the former CEO of CKE Restaurants, which is the parent company of Carl's Jr and Hardee's, told Fox Business's Varney & Co on Tuesday that he predicts that "middle-performing" restaurants are going to disappear.
"There will be a lot of restaurants underperforming. Middle-performing restaurants are going to go away. Very good-performing restaurants will become midland or low-performing restaurants," he said. "As more restaurants close, there'll be more customers for fewer restaurants. But people just can't afford these prices. And there's only so much you can do to reduce prices."
