Fast food chains offering cheaper meals
Taco Bell announced a value meal promotion on Thursday, joining other major fast-food chains in rolling out meal combo deals to entice inflation-weary consumers.
The $7 Luxe Cravings Box, which includes full-sized menu items, is a temporary promotion, the company said, but did not share specifics on how long it will last. Taco Bell's move comes at a time when more Americans arerecoiling from fast-food dining in response to soaring menu prices.
With the Cravings Box, Taco Bell will be "giving consumers our most craveable items at an affordable price point," Taylor Montgomery, Taco Bell North America's chief marketing officer said in a statement.
Here's what's inside Taco Bell's $7 Luxe Cravings Box:
- Chalupa Supreme
- Beefy 5-Layer Burrito
- Double Stacked Taco,
- Chips and nacho cheese sauce
- Medium-size drink
Burger King, McDonald's, Wendy's and others have also turned to promos in hopes of luring back cash-strapped customers. Foot traffic at certain locations has either decreased or slowed in growth, fast-food restaurants have reported in recent weeks. Casual dining restaurants, like Applebee's and IHOP, are also seeing a decrease in restaurant traffic.
Restaurant chains point to rising labor costs and food costs as the reason for price hikes to their menus in recent years. Across the U.S., 22 states raised theirminimum wages in January, even as the federal baseline pay languishes at $7.25 an hour.
However, labor advocates dispute that argument, saying the fast-food behemoths can more than afford the wage increases. The industry recorded profit margins in March, according to ananalysisof California fast-food restaurants by the Roosevelt Institute, a liberal think tank.
Price hikes to fast-food menu options appear to be particularly harmful to low-income Americans. A Januarypollby consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, citing cost as a main concern. A study from financial services firm Primerica found that 80% of U.S. middle-income households — those that earn between $30,000 and $130,000 — are cooking more meals at home, in part because of how high restaurant prices have increased.
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Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
