Why Fast Food Prices Are Out Of Control (The REAL Reason)

"fast food prices have grown faster than restaurant food prices and they've grown faster than the average for the Consumer Price Index itself from 2019 to 2023 prices in this category are up nearly 28%"

"From 2019 to 2023 prices in this category are up nearly 28% that's more than full service meals think sit down restaurants with servers which increased nearly 24% and it's also more than overall inflation which increased 19%"

"so I think we all have to agree and acknowledge that yes costs going up was one of the reasons but here's where I think that video from CNBC failed to give us the entire picture because what it's missing is the element of corporate greed"

"so here's what I'm looking for assuming there's no corporate greed we should see a net profit margin rate that's pretty stable and if it grows it should go up pretty slowly every year in line with inflation but if there is Corporate greed then the net profit margin rate I think should have a big spike specifically in a short amount of time after 2020"

"after 2019 their net profit margin skyrockets to 27% then it dips at the height of the pandemic but still it's higher than their average before the pandemic this is when we were told supply chain issues the materials are stuck at Port and of course the wage spiral explanation where there's not enough workers so they had to pay people more and so they did that's why you're seeing this net profit margin dipping as you can see but corporations are not dumb they pass on those costs to the consumer and then some that's why the net profit margin skyrockets to above 30% and now it's hovering above 33%"

"now their net profit margin rate is sitting at pretty much an all-time high"

"prices in general across the economy very rarely ever come down once they've been reset higher one of the reasons for that is Wages once they're reset higher very rarely get pushed back down and and reset lower"

"the cost for everything including plastic and resins wood and lumber steel are all higher now than they were before the pandemic and specifically the producer price index for food manufacturing is up 28.5% from before the start of the pandemic and labor costs went up 28.2%"

"so if costs went up by 28% and fast food prices went up by roughly 28% how much of that was corporate greed"

"it's getting insanely expensive regardless of what the reason is"

"that corporate greed does play an element to this and why aren't they are they afraid of upsetting their corporate overlords"

"I wish there was more of a focus on education about economics and how this stuff works so people can get a better job so they don't have to worry about buying fast food"

"and they can afford to eat healthy which for some reason is more expensive than eating junk food"