Inflation and food cost are driving prices up
Deutschlandreform/Shutterstock
Burger King is feeling the squeeze as well, just like your favorite neighborhood spots and other national chains. Food & Wine reports that Burger King has switched its 10-piece nuggets option out with eight-piece nuggets at more than 1,000 locations. The Whopper is another casualty, according to MarketWatch, and has been pulled from the discount menu and is no longer an eligible choice for the 2 for $5 or 2 for $6 promotional deals.
Citing an earnings call transcribed by FactSet, MarketWatch reported that the CEO of the United States’ biggest Burger King franchisor (Carrols Restaurant Group) said that the cost of beef had increased by 33%, and hourly wages had risen by14%. Chief executive officer Daniel Accordino explained, “Commodity inflation overall was approximately 16% this past quarter compared to the prior year period.” Accordino struck a somewhat optimistic tone, noting that while the company couldn’t “predict when these inflationary cost pressures will end,” the company expected them to lessen later in 2022. The CEO added, “We also intend to continue to move pricing to partially offset inflation to the extent possible without impacting traffic.” So, unfortunately, these price increases might become more common.
Burger King Just Became More Expensive. Here’s Why
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By Nick Desimone/Feb. 25, 2022 8:24 pm EST
Inflation and food cost are driving prices up
Deutschlandreform/Shutterstock
Burger King is feeling the squeeze as well, just like your favorite neighborhood spots and other national chains. Food & Wine reports that Burger King has switched its 10-piece nuggets option out with eight-piece nuggets at more than 1,000 locations. The Whopper is another casualty, according to MarketWatch, and has been pulled from the discount menu and is no longer an eligible choice for the 2 for $5 or 2 for $6 promotional deals.
Citing an earnings call transcribed by FactSet, MarketWatch reported that the CEO of the United States’ biggest Burger King franchisor (Carrols Restaurant Group) said that the cost of beef had increased by 33%, and hourly wages had risen by14%. Chief executive officer Daniel Accordino explained, “Commodity inflation overall was approximately 16% this past quarter compared to the prior year period.” Accordino struck a somewhat optimistic tone, noting that while the company couldn’t “predict when these inflationary cost pressures will end,” the company expected them to lessen later in 2022. The CEO added, “We also intend to continue to move pricing to partially offset inflation to the extent possible without impacting traffic.” So, unfortunately, these price increases might become more common.
Citing an earnings call transcribed by FactSet, MarketWatch reported that the CEO of the United States’ biggest Burger King franchisor (Carrols Restaurant Group) said that the cost of beef had increased by 33%, and hourly wages had risen by14%. Chief executive officer Daniel Accordino explained, “Commodity inflation overall was approximately 16% this past quarter compared to the prior year period.” Accordino struck a somewhat optimistic tone, noting that while the company couldn’t “predict when these inflationary cost pressures will end,” the company expected them to lessen later in 2022. The CEO added, “We also intend to continue to move pricing to partially offset inflation to the extent possible without impacting traffic.” So, unfortunately, these price increases might become more common.
