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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

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Dillas Quesadillas

Design with photo of Michael Mabry and Dillas Primo Quesadillas logo

Franchise Times: New Franchise Exec Says Dillas Is Bringing ‘Excitement’ Back to QSR Category

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Lawn Squad

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad 

Greener, Faster, Smarter: Why Entrepreneurs Are Choosing Lawn Squad as a Treatment-Only Lawn Care Franchise

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Jollibee

How Jollibee’s Veteran Leadership Team Is Rewriting the Playbook for U.S. Expansion

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Woodhouse Spas

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Mellow Mushroom

How Mellow Mushroom’s Model Made it the Perfect Addition to Brad Harper’s Restaurant Portfolio

How Mellow Mushroom’s Flexible Model Made it the Perfect Addition to Brad Harper’s Growing Restaurant Portfolio

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

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