A fast food CEO made one scary prediction that McDonald’s fans are going to hate

Jun 3, 2024

The fast-food industry is dealing with upheaval during Joe Biden’s Presidency.

Now the future of grabbing a quick bite to eat could be worse than anyone imagined. 

And a fast-food CEO made one scary prediction that McDonald’s fans are going to hate.

Former fast-food CEO predicts more closures are coming 

Former CKE Restaurants CEO Andy Puzder predicted that rising prices are going to force more fast-food restaurants to close during an appearance on Fox Business.

“There will be a lot of restaurants underperforming,” Puzder said. “Middle-performing restaurants are going to go away. Very good-performing restaurants will become midland or low-performing restaurants.”

Puzder led CKE Restaurants – the parent company of Carl’s Jr. and Hardee’s – for nearly two decades.

“As more restaurants close, there’ll be more customers for fewer restaurants,” Puzder continued. “But people just can’t afford these prices. And there’s only so much you can do to reduce prices.”

Fast food prices have skyrocketed since the inflation crisis started under President Joe Biden.

The cost of eating out has gone up 22% since he took office, vastly outpacing the already elevated rate of inflation.

Fast Food Menu Prices found that the price of a McDonald’s Big Mac jumped from $3.99 in 2019 to $8.29 today. 

“Subway’s long-advertised $5 Footlong sandwiches are no more, as a BLT Footlong that cost $5.50 in 2019 now costs customers $8.49 in 2024, though prices can vary by location. Additionally, Chipotle’s beloved chicken burrito that cost $6.50 in 2019 now runs customers $10.70,” Fox News reported.

The rising price of fast food has caused more of their customers to eat at home to save money.

And that’s leaving restaurants with fewer customers to compete for in the Biden economy.

Big changes are coming to fast-food restaurants

Labor costs for restaurants are one of the major contributors to price hikes at fast food chains.

Biden paying people not to work during the pandemic led to a shortage of workers and Democrat states have seen minimum wage increases.

That’s already forcing fast food chains to come up with some innovative solutions.

“I was talking to a fast food chain CEO about a week ago, and he was saying they’re going to take all of their ordering at the drive-thru . . . [with] professional order takers in India or in the Philippines,” Puzder explained. “It won’t be anybody in the restaurant that takes your order.”

Businesses in New York City have started to experiment with receptionists from the Philippines and other countries greeting customers from a computer screen at the front desk via video conferencing over the Internet.

“They’re doing anything they can to reduce costs so they don’t have to raise prices,” Puzder said. “But there’s so much pressure, particularly in California.”

California increased the minimum wage for fast food workers in the state to $20 an hour this year.

“It was hard when I did it. It’s a very competitive business, you’re really out there, it’s very cutthroat. But now the government’s making it impossible, particularly [for] a company like I had, which was Hardee’s and Carl’s Jr.,” Puzder recalled.

“When I ran it, [it] was stationed in California, [and] was headquartered in California,” Puzder continued.
“I moved it to Nashville. And I think that’s a big reason why it’s surviving.”

The Biden economy is forcing the fast food industry to undergo a dramatic restructuring.

*Read All About It Poll*

Latest Posts: