1851

The food-away-from-home index rose 0.6% in November and 5.8% over the same period a year ago, marking the highest annual rate of increase since 1982, <a href="https://www.bls.gov/news.release/pdf/cpi.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">according to the U.S. Bureau of Labor Statistics</a>.This restaurant inflation is in large part due to the two main issues hitting the industry particularly hard right now: <a href="https://1851franchise.com/supply-chain-crisis-continues-to-hurt-fast-food-restaurants-2716975#featured">labor shortages and supply chain disruptions</a>.&nbsp;For one, a historic labor shortage has led to a major spike in wages. <a href="https://www.technomic.com/technomics-take/coronavirus-foodservice-view?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">According to Technomic</a>, wages are up 14% this year, which comes in at nearly three times the overall rate of inflation. McDonald’s franchisees, for example, are facing a 10% wage inflation, <a href="https://www.qsrmagazine.com/fast-food/mcdonalds-boosts-sales-bigger-orders-and-higher-prices?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">according to QSR Magazine</a>, forcing the legacy brand to increase menu prices by 6% compared to 2020.In addition, these labor issues are disrupting the global supply chain, creating challenges for meat processors and distributors who can’t find enough staff to keep operations running smoothly. Wholesale costs for meat and poultry have gone up more than 20% since the start of the year, government <a href="https://www.bls.gov/news.release/pdf/ppi.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">data</a> shows.Although menu price inflation could deter consumers, some operators and companies have reported <a href="https://1851franchise.com/food-prices-are-hitting-record-highs-but-qsr-franchisors-say-customers-are-still-eager-to-eat-out-2716518#stories">steady and even high sales</a> in 2021, perhaps due to <a href="https://1851franchise.com/new-study-reveals-how-many-americans-are-ready-to-dine-out-again-2715641">pent-up demand</a>. This has given restaurants the opportunity to successfully pass rising costs from labor and inflation on to consumers, according to research from <a href="https://www.fitchratings.com/research/corporate-finance/us-restaurants-up-prices-to-offset-labor-inflation-on-strong-demand-09-08-2021?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">Fitch Ratings</a>.&nbsp;“The six percent [increase] has been pretty well-received by customers,” McDonald’s CEO <a href="https://www.linkedin.com/in/chriskempczinski/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=menu-prices-reach-a-39-year-high-due-to-inflation-2717477" target="_blank" rel="nofollow">Chris Kempczinski</a> told QSR. “We do certainly have a very big focus to make sure that we are balancing cost pressures and being able to cover those with making sure that our value perception by customers continues to be favorable, and we are continuing to see those surveys and scores from a value favorability perspective still positive from customers.”Related stories:<ul><li><a href="https://1851franchise.com/food-prices-are-hitting-record-highs-but-qsr-franchisors-say-customers-are-still-eager-to-eat-out-2716518#stories">Food Prices Are Hitting Record Highs, but QSR Franchisors Say Customers Are Still Eager To Eat Out</a></li><li><a href="https://1851franchise.com/fast-food-franchises-face-nightmare-worker-shortage-2715431">Fast Food Franchises Face ‘Nightmare’ Worker Shortage</a></li><li><a href="https://1851franchise.com/wingstop-is-the-latest-franchise-to-suffer-from-soaring-food-costs-2717113">Wingstop Is the Latest Franchise To Suffer From Soaring Food Costs</a></li></ul>

Menu Prices Reach a 39-Year High Due to Inflation

1851 Franchise

Limited-service restaurant prices rose 7.9% year-over-year as operators offset rising labor and supply chain costs to customers.

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Fresh Coat

Photo of Jeff and Jenn Berry standing in front of their Fresh Coat Painters vehicle

After Health Concerns Pushed Jeff Berry to a New Opportunity, He Earned Fresh Coat Rookie of the Year in Year One

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Pigtails & Crewcuts

Pigtails & Crewcuts Leadership Team Brings Over 70 Years of Experience to the Table

Pigtails & Crewcuts Leadership Team Brings Over 70 Years of Franchise and Child-Focused Industry Experience to the Table

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Dog Training Elite

How Dog Training Elite Helps Individuals With Mental Health Challenges

Training Support That Makes a Difference: How Dog Training Elite Helps Individuals With Mental Health Challenges

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TruBlue Home Service Ally

Turn Your Passion for Helping Others Into a Profitable Business With TruBlue Home Service Ally Franchise

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Right at Home

Right at Home - What To Expect at Right at Home's Discovery Day - 1851 Franchise

What To Expect When Attending Right at Home’s Discovery Day

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Menu Prices Reach a 39-Year High Due to Inflation

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