Disparities in the rate of price inflation across fast-food menus
Price hikes vary by menu category, led by drinks.
Recent reports on the UK foodservice industry's 2024 price trends reveal significant disparities in inflation rates across menu categories.
According to the latest analysis by Meaningful Vision, food price inflation decreased to 7% from a peak of 12% in December 2023, whilst beverages followed suit, dropping to 6% from 11% over the same period. Notably, items priced below £2 saw a 9% inflation rate, contrasting sharply with a mere 4% increase for items priced above £15.
The research reveals price increases are unlikely to be introduced uniformly across an entire menu, but are generally applied at different rates to the various menu sub-categories.
For example, cold drinks, sandwiches, and snacks lead with the highest price increases of around 9-10% in April compared to the previous year. By contrast, breakfast items (6%), savoury bakery products (5%), and pizza (3%) experienced slower price growth.
“Value-oriented promotions highlighting budget-friendly menu items can be particularly effective in attracting cost-conscious consumers. Differentiated pricing strategies that consider the varying inflation rates across categories are a useful tool. Additionally, meal deals, promotions, and a focus on value-oriented offerings can help stimulate demand and offset potential declines in foot traffic. Our insights underscore the importance of strategic pricing in maintaining consumer confidence, despite the challenging economic environment the remainder of 2024 promises for both businesses and their customers,” Meaningful Vision CEO, Maria Vanifatova, said.
