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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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