New York Food Business Association tracks the changes shaping the food industry: McDonald’s is losing ground with low-income customers — and even the CEO is acknowledging it!
In a recent article from The Washington Post, fast food’s biggest player admits it’s facing real challenges: a sharp drop in visits from lower-income Americans, who are increasingly skipping the drive-thru because it’s just too expensive.
CEO Christopher Kempczinski told investors that traffic from this group dropped nearly double digits across the industry. Inflation, rent, childcare, groceries — it’s all piling up. And for many, McDonald’s just doesn’t feel like a value anymore.
Meanwhile, wealthier customers are dining out more than ever. The gap is growing — not just in incomes, but in where people eat. Even Chipotle and Walmart are noticing the shift.
From 2019 to 2024, the average McDonald’s menu item jumped 40% in price. That’s driven some to cheaper alternatives — and even sit-down chains like Chili’s are luring in budget-conscious diners.
McDonald’s has tried to respond with $5–$8 meal bundles and snack wraps at $2.99. But even with promotions and a return of the Monopoly game, holding onto its core low-income base isn’t easy.
Food businesses everywhere should be watching this closely. The landscape is shifting — and not everyone’s coming along.
Original article — The Washington Post: https://www.washingtonpost.com/business/2025/11/05/mcdonalds-losing-low-income-customer