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McDonald's, Burger King, and Domino's cancel discounts and reduce meal sizes

In recent years, leading fast-food chains have been forced to cut costs due to inflation and declining consumer activity.
McDonald's, Burger King, and Domino's cancel discounts and reduce meal sizes

The Wallstreet Journal reports that Burger King has reduced the number of discounted items on its regular menu and has reduced portions to boost its margins. In this way, the company hopes to keep more customers than by raising prices on the menu.

Restaurant profits could grow by nearly $500 million a year as a result of menu changes the company is making in the United States. Among the changes:
  • Eliminating bargain deals.
  • Reducing the number of nuggets to 8 from 10 per serving.
  • Raising prices on nuggets, fries, and a bacon cheeseburger.
Domino's also decided to cut portions in individual dishes and limit bargains to online-only orders, which cost the company less to process amid rising labor costs. For its part, McDonald's announced earlier this year that it was allowing franchised establishments to sell carbonated drinks at higher prices. Denny's snack chain has reduced the number of inexpensive meals on its menu due to rising labor costs and higher food prices.

U.S. consumer price growth in December 2021 was 7 percent, the highest since 1982. During that time, restaurant prices rose an average of 6%, a record for nearly forty years. Many players last year had to offset costs by raising prices. In 2022, assuming the inflation rate continues, price increases will continue. According to recent research on the fast-food market, the number of promotional and combo sets has nearly halved over the past five years. Experts note that many players have also begun to reduce the number of good deals for customers amid rising food prices over the past year. 

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