[Music]
paying more and getting less if you're a
fan of domino's chicken wings mcdonald's
fountain drinks or starbucks coffee this
might be the future you're in for from
burger king to shake shack here are the
restaurants raising their prices that
you need to watch out for
one dollar soda at mcdonald's may now be
a thing of the past according to the
wall street journal the chain has given
its franchise operators the green light
to sell soft drinks for more than the
long time one dollar price point does
this mean that all prices at mcdonald's
are going up not necessarily the fast
food chain is said to be engaging in a
high-wire balancing act to keep its
customers happy while dealing with
inflation the chain reportedly saw a 14
increase in operating costs in the last
quarter of 2021 while also dealing with
supply chain issues that caused a french
fry shortage in japan in december 2021
the company is also chewing its nails
off over rising food and paper costs
mcdonald's has reportedly had to raise
its u.s menu prices by 6 to compensate
for the burgeoning food and labor
charges according to chief executive
kris kempchenski the chain is also
racking its brains to tweak the pricing
on its meal combo deals in a way that
doesn't scare diners away
found a couple of chicken wings missing
in your domino's order you're not alone
the 799 carryout deal which gave
customers the option of choosing between
10 chicken wings or a three-topping
pizza changed in january 2022. now the
offer will only be available digitally
and instead of 10 wings you'll get 8.
why so stingy dominos according to ceo
rich allison inflation and labor
shortage contributed to the decision
domino's food costs are expected to rise
eight to ten percent in 2022 which is
almost four times more than in a normal
year according to restaurant business
also the labor crunch brought by the
kobit 19 pandemic reportedly has the
chain paying more to hire its employees
and keep them around it's a perfect
storm of circumstances that's resulting
in what will probably become a long-term
price increase for domino's wings
burger king has been pummeling its
customers with one menu change after
another the chain did away with its
paper coupons removed menu items reduced
the number of nuggets in its meals and
even took the whopper off its core
discount menu according to restaurant
business the chain is set to bring more
cuts to its menu in 2022 from burger
king's standpoint it's just doing
whatever it can to sustain especially
after losing its position as the second
best burger chain to wendy's in 2021
according to forbes daniel acadino chief
executive of carroll's restaurant group
burger king's largest franchiser in the
u.s said that these were all measures
taken to combat inflation the menu
changes are expected to account for the
33 increase in the price of beef and a
14 increase in average hourly wages said
to hit the market in the near future
here's a bad way to start your morning
according to cbs news a venti size cup
from starbucks already costs 20 more
than it did in 2021. the seattle-based
chain hiked its prices three times in
five months from october 2021 to
february 2022 and reportedly further
price hikes loom according to fortune
coffee beans recently saw the largest
price rise in a decade thanks to things
like changing weather patterns shipping
shortages and the cost of energy and
packaging materials despite supposedly
rising costs starbucks seems to be doing
well according to the new york times the
company's profits between october and
december 2021 went up by 31
this has some consumer advocates
wondering if the rising menu prices are
really a profit-making charade as the
company faces a wave of calls for
unionization among its employees some
workers at this store are asking for
higher pay better working conditions and
enough labor hours to receive benefits
olive garden's parent company darden
restaurants reportedly spent an extra
nine percent on food and beverages and
an extra 9 on employee wages in the last
quarter of 2021 the restaurant group
decided to raise venue prices to offset
the rising costs according to a 2021
wall street journal report the company
has been carefully tweaking menu prices
seeing how high prices can go before
customers complain when the restaurant
upped its prices by two percent it
apparently observed little pushback from
diners though darden predicts inflation
of four percent in 2022 the company
isn't swearing by its menu price hike as
the only solution to the looming problem
for example darden which operates a
variety of popular restaurants took
efforts to make sure that all of its
establishments are properly staffed
despite widespread hiring shortages in
the field darden managed to accelerate
its hiring process to add 1 000
employees
cracker barrel menu price changes have
us humming a sad tune here's why after
slapping on a 3 menu price hike in mid
2021 cracker barrel plans to further
raise it by six percent in fiscal year
2022. the tennessee based chain plans to
roll out the price increase in small
bursts analyzing customers reactions
each time from november 2021 to january
2022 the menu prices increased by 5.3
percent in the third and fourth quarters
cracker barrel intends to bump those up
by a further six percent according to
chief financial officer craig pommels
the 5.3 hike had minimal impact on the
number of customers traipsing in for
country fried steak good for them but
what's good news for the customers is
that cracker barrels value menus
including their 599 sunrise specials and
6.99 lunch specials will remain immune
to change as is the story with seemingly
every other restaurant chain cracker
barrel is doing this all in response to
commodity price hikes and wage inflation
next time you order your cactus blossom
at texas roadhouse you will feel the
sting of a slightly more expensive menu
the pressure of rising beef prices and
increased wages pushed the chain to
raise prices by 4.2 percent in november
2021 texas roadhouse whose menu boasts
myriad steak dishes bore the brunt of
beef costs going ballistic adding to all
this bleak stuff is the chain's
announcement of another three percent
price increase in april 2022 having said
that the lone star state-based chain has
been careful about overcharging
customers jerry morgan texas roadhouse
president told nations restaurant news
that the company has not seen a negative
reaction to the price increases that
took place in may and november of 2021
outback steakhouse has been doing some
back of the napkin math to ensure it
stays afloat in 2021 the chain predicted
that a 10 commodity inflation in the
next year would cost the company 100
million dollars labor costs would keep
on another 45 million dollars and
additional operational charges will
amount to some 25 million dollars it
must be tough to maintain the laid-back
aussie spirit but the steakhouse has a
plan pump up menu prices not cool mate
the chain announced in november 2021
that it would have to increase pricing
by three percent saving the company 100
million dollars the tampa bay times
reported a good year for blumen brands
outback steakhouse's parent company and
even noted an increase in restaurant
sales compared to 2019 yet the chain
realized that it might have
underestimated the inflation of goods
and labor to balance its budget books
the chief financial officer chris meyer
said it was decided that an additional 2
menu price increase would be appropriate
recently the cheesecake factory has
faced the wrath of supply chain issues
inflation and labor shortages brought on
by a worldwide pandemic so all those
lettuce scraps and strawberry
cheesecakes that you have grown to love
are about to get more expensive the
cheesecake factory announced that its
menu prices will be up by 3.25
in 2022. david overton ceo and chair of
the cheesecake factory incorporated said
that the company is simply responding to
rising inflation and labor costs having
said that things are getting better for
the detroit based chain the hiring has
increased covered restrictions have been
removed and off-premises sales are high
meanwhile the restaurant is planning a
new menu has a new website and is
increasing by an additional five
restaurant units but it's still a little
early to cut that celebration cake if
the inflation doesn't dim the chain
reportedly might further increase its
pricing by 2 later in the year
to offset the cost due to commodity and
wage inflation chipotle increased its
menu prices by 4 in december 2021 but
much like the amount of queso chipotle
tends to give you it just wasn't enough
in 2022 the chain jacked up the pricing
by a further six percent and might
increase it further cfo jack hartung
said that cost on beef avocados and
freight in general had inflated more
than expected he also told bloomberg
that the price hike was undertaken to
raise employee wages we raised prices in
the second quarter of last year we did
that just to cover the cost of raising
wages well one may imagine that the
customers would throw a tantrum about
having to pay extra for a side of guac
ceo brian nichol says there was quote
very little resistance
shake shack has been shaking up its menu
prices more than ever before while the
burger chain usually increases its menu
prices by 2 annually in october 2021 it
announced a 3.5 increase in menu prices
just four months later it announced
another 3 to 3.5 price hike making for
an overall significant increase in a
short amount of time according to shake
shack chief financial officer catherine
fogerty said the company knew that the
move was a risk when they made it but
she claims that customers responded well
the chain is still crawling back to
normalcy after the covet 19 pandemic put
many restaurants in an unstable position
but shake shack reportedly plans to open
around 50 new restaurants in 2022
for 25 years little caesar's hot and
ready pizza had remained seemingly
immune to a price increase so when the
chain announced in october 2021 that its
14 inch pizza won't be five dollars
anymore it had loyal fans feeling
betrayed one hot and ready classic we
actually changed it we changed it
one particularly hurt customer tweeted
about the price change with the dire
words america has fallen on the bright
side the rebranded pizza according to
the company will boast 33 more pepperoni
so that's something for everyone moping
about the cost food and wine points out
that the 55 cent increase is a long time
coming because five dollars in 1997 the
year the pizza was launched is
equivalent to eight dollars and 61 cents
in 2021
in 2020 taco bell flaunted 21 items that
could be bought for just a dollar two
short years later that list is getting
thin according to an analysis by
research firm gordon haskett the chain
hiked its prices 10 between july 2020
and july 2021. since mid-2021 the chain
strategy to offset costs has been to
offer popular items for a limited time
at a high price like the grilled cheese
burrito which it brought back in
november 2021 speaking to insider mark
kalinowski ceo of kalinowski equity
research described the move by saying
this is an example of a menu shift where
a chain rolls out more expensive
offerings while quietly taking cheaper
ones off menus
i don't need a receipt for a donut i'll
just give you the money you give me the
donut
and the transaction
krispy kreme jacked up its donut prices
first in september 2021 then again a
month later but as ceo mike tattersfield
said on yahoo finance live each donut is
still around one dollar each he said we
are a dozens business so we do always
pay attention to an accessible price
point so when you think about the
pricing that will happen on a dozen you
won't really see it that much however
according to restaurant business company
executives said there is no guarantee
that the donut prices won't increase
further in 2022. just like every other
restaurant business out there krispy
kreme is trying to offset the inflated
cost of ingredients and a steep rise in
gasoline prices the chain is also
investing in hiring a large number of
employee drivers to distribute its
donuts in 2021 the donut company
reportedly hired 2 100 employees in the
united states
if you're a dunkin loyalist you've
probably already noticed that your
coffee is getting more expensive
according to the research firm gordon
haskett the menu prices at duncan rose 8
between summer 2021 and 2022. now an oat
milk ice latte from duncan is getting
dangerously close to the starbucks price
range acknowledging the price increase
jm smucker co which manufactures and
distributes dunkin branded coffee
released a statement acknowledging
supply chain challenges according to the
wall street journal the price of
manufacturing transportation ingredients
and packaging have all gotten more
expensive leading directly to price
increases
your go-to place for affordable pasta
and an extra helping of gochujang sauce
glazed meatballs is getting more
expensive according to nation's
restaurant news noodles and company
plans a three to four percent menu price
increase in the second quarter of 2022 a
number of factors are to blame one being
the high cost of boneless chicken breast
according to company chief finance
officer carl lukach that alone is
responsible for 50 of the chain's
protein costs the price of boneless and
skinless chicken breast meats rose
between 2020 and 2021 and covid19
restrictions forced the chain to close
some stores and reduce operating hours
which also affected the company's
performance while the chain continues to
introduce more menu items in 2022 like
the carb lite and protein rich linguine
it seems like it'll cost you a little
more this year to enjoy it
between 2020 and 2022 papa john's
introduced some premium pizza options at
relatively premium prices as the chain
ceo robert m lynch said in an earnings
call we launched stuffed crust we
launched new york style all of those at
12. or thirteen dollars national
promoted price points those are twenty
percent and thirty percent increases in
price per pizza according to restaurant
business the chain stuffed crust pizza
was introduced in december 2020 while
the chacaroni and new york style pizza
debuted in 2021 these three items have
helped the chain offset inflation costs
according to food business news that
being said the chain did suffer
shortened hours and driver shortages due
to covet 19 according to restaurant
business however lynch claimed that
these were temporary problems and that
the chain will bounce back as he put it
i don't think there's a lot to be upset
about with papa john's
wingstop seems like it couldn't be
simpler want wings stop there however
since june 2021 the chain has given its
customers the option to choose between
wings and thighs introduced as a virtual
brand wingstop's thigh stop was an
effort by the chain to offset the
increased costs of bone-in wings by
offering bone-in and boneless thighs
instead just comparing the prices of
bone-in wings in the last quarter of
december 2021 with that of december 2020
shows a 41 increase and with 65 of the
chain's menu involving wings one can
easily imagine the financial pressure
guess you're done hustling huh rick
no
we doing fast unfortunately for wingstop
revising its menu options apparently
wasn't enough the chain also increased
menu prices across the board by 10 in
2021 reports forbes on a quarterly
earnings call in november 2021 wingstop
ceo charlie morrison said this
environment we're in which we don't
believe is transitory in any way shape
or form is driving the need to take
price where consumers are willing to
address and adopt that in other words
wing stop prices are up forever don't
expect them to go down again
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