Fast food, or QSR, has long been a go-to option for budget-conscious consumers, but a recent surge in prices is making it increasingly difficult for low-income families to afford.
According to a recent study, QSR prices have risen by 20% since 2021. This increase is due to a number of factors, including rising food costs, labor shortages, and supply chain disruptions.
As a result of the price increases, low-income consumers are cutting back on their fast-food spending. A survey by the Center on Budget and Policy Priorities found that 40% of low-income families have reduced their fast-food spending in the past year.
QSR chains are responding to the changing spending habits of low-income consumers by offering fewer non-segmented discounts and promotions. In the past, QSR chains would often offer coupons and discounts to attract customers. However, with sales remaining strong despite the price increases, chains are less likely to offer these promotions.
Instead, chains are using loyalty apps and targeted discounts to appeal to low-income consumers. Loyalty apps allow customers to earn points towards free food and drinks, while targeted discounts are offered to customers based on their purchase history.
For many low income families, fast food was a convenient and affordable option. However, the recent price increases are making it increasingly difficult for these families to pay the QSR price.
It remains to be seen whether collecting data will be successful by successful enough to create new customers.
