1851

The fast-food industry is facing challenges, highlighted by&nbsp;<a href="https://corporate.mcdonalds.com/corpmcd/our-stories/article/Q2-2024-results.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">McDonald’s disappointing second-quarter performance</a> and closures of several other fast-food franchises,&nbsp;<a href="https://www.franchisewire.com/is-the-fast-food-industry-growing-or-declining/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">Franchise Wire recently reported</a>.&nbsp;A&nbsp;<a href="https://www.lendingtree.com/debt-consolidation/fast-food-survey/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">Lending Tree survey</a> revealed that 78% of respondents now see fast food as a luxury due to rising costs. This economic strain has caused a decrease in consumer traffic, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-2720737">McDonald's</a> experiencing&nbsp;<a href="https://www.reuters.com/business/retail-consumer/mcdonalds-posts-surprise-drop-quarterly-global-sales-spending-slows-2024-07-29/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">its first global sales drop in 13 quarters</a> and an overall 1% downturn at stores open for at least a year. Foot traffic at U.S. fast-food restaurants fell by 2% in the first half of the year, and experts predict continued pressure from high inflation and rising consumer debt.The industry is seeing notable closures, with brands like&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-arbys-franchise-costs-fees-profit-and-data-2720798">Arby’s</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-bojangles-franchise-costs-fees-profit-and-data-2721551">Bojangles</a>,&nbsp;<a href="https://1851franchise.com/boston-market-partners-with-grubhub-doordash-2707529">Boston Market</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-burger-king-franchise-costs-fees-profit-and-data-2720751">Burger King</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dairy-queen-franchise-costs-fees-profit-and-data-2721280">Dairy Queen</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-kfc-franchise-costs-fees-profit-and-data-2720768">KFC</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa John’s</a>,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-popeyes-franchise-costs-fees-profit-and-data-2720998">Popeyes</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> shutting down multiple locations. Despite these setbacks, some fast-food chains are leveraging&nbsp;<a href="https://www.franchisewire.com/fast-food-news-flash-big-brands-wage-value-deal-battle/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">value meal deals</a> to attract customers, and the&nbsp;<a href="https://worldpopulationreview.com/country-rankings/fast-food-consumption-by-country?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">inherent popularity of fast food in the U.S. remains strong</a>. Americans spend an average of $1,200 annually at quick-service restaurants, and 84% eat fast food at least once a week.Looking ahead, there is optimism for recovery. The&nbsp;<a href="https://www.wsj.com/economy/central-banking/federal-reservice-interest-rate-decision-b5c39738?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">Federal Reserve’s potential rate cuts</a> could ease borrowing costs, increasing consumer spending power. Analysts, like Brian Mulberry from Zacks Investment Management, foresee a rebound in fast-food traffic later in the year, bolstered by improved value offerings. While the current dip raises concerns, the industry's long-term growth prospects remain intact, suggesting this downturn may be temporary.In the first part of August, 1851 Franchise is rolling out a series of articles spotlighting the leading restaurant franchises across different categories. This series is designed to offer in-depth information, assisting prospective franchisees in making well-informed decisions about where to invest and identifying the industry sectors with significant growth potential.&nbsp;Check out our 1851 Franchise 2024 Restaurant Industry issue&nbsp;<a href="https://1851franchise.com/the-restaurant-industry-in-2024-a-state-of-the-industry-overview-2726918#featured">here</a>.&nbsp;Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Fast Food Industry Recovery - 1851 Franchise

Fast-Food Industry Faces Industry Challenges But Anticipates Recovery with Value Deals

1851 Franchise

The fast-food industry is facing temporary challenges due to inflation, but recovery is expected as economic conditions improve and value deals attract customers.

Fast-Food Industry Faces Inflation Woes but Hopes for Rebound with Value Deals and Economic Relief

fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief

Melting Pot

Photo of interior of Melting Pot restaurant

Lexington Herald Leader: This Restaurant Chain Eyes a Return to Lexington After 10 Years

melting-pot-return-to-lexington

Keke's Breakfast Cafe

Keke's Breakfast Cafe - John and Kimberly Ehrhard - 1851 Franchise

Empowering Leadership, One Pancake at a Time: How John and Kimberly Ehrhard Are Building a Franchise Legacy with Keke’s Breakfast Cafe

john-kimberly-ehrhard-kekes-franchise

Comfort Keepers

More Than a Caregiver: Loretta Smith's Support Extends to Fellow Caregivers, Clients and the Community

more-than-a-caregiver-loretta-smiths-support-extends-to-fellow-caregivers-clients-and-the-community

Photo of Melting Pot CEO John "JC" Crawford

Melting Pot Names New CEO, Celebrates 50th Anniversary With Continued Growth and Leadership Promotions

melting-pot-franchise-mid-year-2025

Layne's Chicken Fingers

Texas Layne’s Franchisee Secures Real Estate in Austin, Set To Open Early Next Year

texas-laynes-franchisee-secures-real-estate-in-austin-set-to-open-early-next-year

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

Fast-Food Industry Faces Inflation Woes but Hopes for Rebound with Value Deals and Economic Relief

MORE STORIES LIKE THIS