Are consumers turning their backs on fast food?
It looks like consumers around the world aren't willing to keep trading down in their eating habits just because their incomes have stalled. In fact, it looks like some are just going to quit eating out altogether, particularly at the lower end of the fast-food chain.
McDonald's just reported its first monthly decline in same-store in a decade, BrandChannel reports, never a good sign when you're looking for economic indicators.
And trusty Canadian icon Tim Hortons, while in slightly better shape, has seen its growth slow as well.
“Our growth rates were below those we have typically delivered in recent years,” Tim Hortons chief executive officer Paul House told analysts recently.
Typically, fast-food outlets hold their own when the economy slides as even cost-conscious diners view them as a fairly low-cost indulgence. Except that doesn't seem to be the case this time around.
Which is why both chains have been offering more deals lately, upping their merchandising at the same time.
McDonald’s is offering free coffee every other week it seems while Tim Hortons has trimmed some prices and begun to offer new items like panini sandwiches to pique consumer interest.
And, with Burger King getting into the delivery business, it's clear that everyone is fighting harder to attract consumers.
Will you be one of them?
Has your fast food spending decreased over the past year? Was is it about budget or health concerns? Do you think you'll be coming back anytime soon?
By Gordon Powers, MSN Money
Posted by: colin | Nov 11, 2021 9:30:29 AM
Why did Macdonalds change their format, In my opinion the new look restaurants dont work. They seem to not be kid friendly and thats what grew mcds. Another Coke mistake..
Posted by: kids friendly | Nov 11, 2021 12:44:39 PM
Yes, we reduced our visits greatly when nearby McD removed the kids play area. The new format does not work
Posted by: mike | Nov 11, 2021 12:54:48 PM
I think the new format of mcdonalds was a huge mistake as well. Its less kid friendly and less friendly period.
Seniors like to go to Mcdonalds to sit and have coffee and with large amounts of seating areas gone there goes that idea. Kids love to go to Mcdonalds to play and with the new format there goes that idea.
And everyone else likes to go for coffee and sit and either read a book or check out the internet. The new stools are stupid I hate them.
Also the other issue is fast food is no longer cheap. So may as well just stay home and send the message to these places that they either reduce prices or go out of business due to their greed. And that may not be such a bad thing after all! Maybe we will see people's health improve with home cooked meals.
Posted by: Paule | Nov 11, 2021 1:20:31 PM
It still costs 1/10th to make your own sandwitch at home, always was and always will be. thats why we put refrigerators and stoves and microwaves in our homes. Highway side restaurants are for travellers not for everyday use.
Posted by: sherry | Nov 11, 2021 2:14:52 PM
At one time you could go get a reasonably cheap meal at various fast food places McD, A&W, DQ, Wendys but now the prices are about the same as many regular restaurants. Unfortunately they are pricing themselves out of the market. A family of 4 who purchases 4 combo meals is paying @ $ 30.00 dollars or more. You can make a whole lot of burger combos at home for that price.
Posted by: dolores tighe | Nov 11, 2021 3:13:54 PM
the fast food these days are way too expensive, not good for you, and some places are not very clean. every time I go to a Mcdonald's some one is sloppying a dirty mop around my feet, even though I realize that they have to keep the place clean, but while I am eating... don't think so.Aso some of the washrooms are not clean either. This turns me off.... So I stay away as much as possible.. and only if we are travelling and there is a dire need to stop and get a coffee or whatever.
Posted by: L.Os | Nov 11, 2021 4:13:08 PM
I did stop MC,cuz health,eating to much of that cost me my gallbladder and am sure this happens to a lot of people,it is clear ,if you want a good thing ,will cost you more,low price or cost ,generally
means less quality,so I decided to get more quality food for me,cooking my own food more often and at the end I spend less and eat better.
Posted by: Deb | Nov 12, 2021 8:17:36 AM
It is and always has been cheaper to eat at home but while growing up, going to MacDonald's was a treat in our family. In today's society it seems as if it's an everyday way of life but our fast food consumption has declined greatly. The prices have skyrocketed to the point of ridiculousness for a simple "meal deal" and the cleanliness of some of the "joints" leaves a bit to desire. I realize they are only trying to keep up with the times, but the changes they are making to their establishments are deterring the very people they should be focusing on....kids.
Posted by: Pat Ryan | Nov 12, 2021 9:38:46 AM
Fast Food is barely food. The obesity epidemic is fueled by the consumption of this junk. People are starting to make the right choices, that's why sales are declining. Almost 1.3 million people joined the Body By Vi 90 Day Challenge in 2012 so far. I used to be responsible for $1500 a year plus on junk "food". Not anymore...and I am no longer obese! 137lbs lost in 14 months!
Posted by: pampam | Nov 12, 2021 10:29:18 AM
i never go to any fast food chain except for vegan,too many people are dying of heart attacks and strokes because of their addiction to fast food.Just read China Study it will tell you everything about
how u can reverse heart disease by not eating animals products.I have quit over a year ago and have lost almost 30 lbs and my iron levels are as good as anyones that eats meat.That is crazy that people quit going somewhere to eat because of the changes to the layout or that there is no kiddy play area..How about it"s just plain bad for you.I have not eaten at a Mcdonalds for over 2 yrs and do not miss it at all.If you knew what they did to those gentle creatures before they landed in your bun i think u would quit burgers and chicken nuggets all together....Lets make a change and teach our children how to eat nutritious,its for the health of all really....
Posted by: Dr. J. Kalmar | Nov 12, 2021 3:00:54 PM
@ pampam... excuse me but where do you get off saying that heart disease is related to eating animal products? HOW DARE YOU! I eat only meat, fat and leafy green vegetables and I am extremely healthy. I cannot survive without meat. If I eat ANY grain product or carbs, my LDL and total cholesterol go very hgh ,triglycerides go high, blood pressure goes up, and my weight increases uncontrollably. I am now 62 years old, and have been living on mostly meat and fat (saturated and unsaturated, but no trans-fat) diet for 50 years. Steak and eggs for breakfast, steak or chicken for lunch and steak, chicken, or seafood for dinner. Sometimes I throw game into the mix. I have a full blood work-up done every 3 mnonths. Blood tests do not lie! There is a huge difference between eating the junk at fast food restaurants and eating fresh meats from a local farm.
Posted by: Linda Lawrence | Nov 12, 2021 5:18:55 PM
I wish these restaurants would stick to what they do/did best. Trying to be everything to everybody doesn't work. McD was good for burgers and fries. Now they're trying to horn in on Robins and Tim Hortons and doing a lousy job of it. And charging as much as a classier coffee shop while giving us a tiny serving of lower quality while they are at it. Concentrate on what you used to. Quit constantly redecorating and putting the cost on our meals. We don't want your so-called improvements. And I can't afford it. I am disabled and live on $600 a month. I can't afford you any more!
Posted by: Randy Clarkson | Nov 12, 2021 6:41:27 PM
I shifted my eating habits from McDonalds to Tim Hortons.
They really improved their service speed and menu. The new panini is actually a healthy take out option and I always get a coffee with it to make me productive in the afternoon!
Posted by: Laurie Middleton | Nov 12, 2021 6:44:33 PM
Ya the tuscan chicken panini on multigrain bread with tomato and cucumber is my favourite!! I still crave McDonalds fries every now and then.