A new report says Chick-fil-A prices have increased 21% in the last two years. Analysts explain the reasonings behind the price hikes and what is expected to come.
Wallet feeling the pinch after eating your most recent sandwich from Chick-fil-A? You are not alone.
A new report says prices for the fast food giant's signature item have increased 21% over two years.
Newsweek compiled data from Food Truck Empire, which said the chicken chain first increased prices for its classic chicken sandwich by 15% in 2022, and a menu-wide 6% increase in January 2023.
For those ordering the menu item the chain is most well-known for, that totals a hefty increase.
LINDSEY GRAHAM WARNS NEW YORK OVER CHICK-FIL-A BILL DURING TRIP TO BIG APPLE
So what is the cause? Rising costs of ingredients, packaging and transportation due to inflation added to supply disruptions, Aaron Anderson, the CEO and founder of franchise consulting firm Axxeum Partners, told Newsweek.
"Higher menu prices can lead to reduced frequency of visits or spending per visit by consumers," Anderson said. "Some may switch to lower-priced alternatives. However, Chick-fil-A's strong brand loyalty might mitigate this impact to an extent."
Chick-fil-A did not respond to a FOX Business request for comment.
Restaurants are also spending more on wages and benefits to keep workers, Anderson said, meaning a rise in labor costs.
FLORIDA CHICK-FIL-A LOCATION LAUNCHES OPTION ON APP TO HAVE FOOD DELIVERED BY DRONE
"Restaurants must find ways to offset the costs though, without passing it all onto the customer or they risk losing their customers," Sam Zietz, the CEO of self-ordering restaurant tech company GRUBBRR, told the weekly news magazine.
Food prices surged by 2.9% from November 2022 to November 2023, the U.S. Department of Agriculture said in a recent report. The government agency said in November 2023 that a family of two adults and two children spends an average of $969 a month on food, based on a "Thrifty Food Plan."
CLICK HERE TO READ MORE ON FOX BUSINESS
In 2022, the USDA says more than one-third of the U.S. food dollar was spent on eating-out services.
