Chart of the Week: June sees accelerated price growth in fast food
Despite the ONS reporting a slowdown in inflation fast-food prices continues to surge.
The fast-food sector experienced a 19% price surge in June 2023 compared to the previous year, surpassing May's growth by 1 percentage point.
Despite the Office for National Statistics reporting a slowdown in inflation from May, fast-food prices took a different trajectory, increasing 18% in May and 19% in June after a stable Q1.
Delivery prices rose even faster, with major aggregators like Deliveroo, Just Eat, and Uber Eats having a 6% higher year-on-year inflation rate compared to restaurants.
Maria Vanifatova, CEO of Meaningful Vision, highlighted the widening price gap, as delivery aggregator prices stand 20% higher than direct restaurant purchases, excluding delivery costs. This affordability gap impacts low-income consumers, increasing the appeal of dine-in and takeaway options.
Price hikes varied across categories, with drinks increasing 12% and food becoming 19% more expensive. Despite these trends, fast-food traffic grew in 2023 due to its affordability amidst rising prices. However, continuing price hikes pose challenges for the industry, necessitating effective promotion and marketing strategies to emphasise value and quality, relying on comprehensive market understanding.
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