Chicken has always been less expensive for restaurants than beef — at least going back to the early 1980s, when McDonald’s introduced McNuggets. The gap widened last year, with government data showing that beef prices rose 8.6% while the cost of chicken only ticked up 1.3%.
Now, as consumers push back against recent menu price hikes, chicken continues to gain appeal in the fast food world.
Cost isn’t the only factor: Chicken tends to be popular among younger people who see it as a healthier option compared to beef, and the dipping sauce combinations are highly marketable. (You want fry sauce with that?)
Chains that specialize in chicken are capitalizing. Raising Cane’s moved up nine spots (from No. 25 to No. 16) in an annual ranking of the top 50 U.S. restaurants based on consumer spending. Wingstop made the second biggest jump, climbing eight spots (from No. 29 to No. 21). Chick-fil-A held onto its third overall position behind second-place Starbucks and first-place McDonald’s, which just rolled out new McCrispy Strips.
In the announcement, the golden-arched fast food juggernaut wrote, “We’ve been listening to our fans on social and beyond, and they have made one thing clear: They want more chicken.”
More from Money:
Fast Food Restaurants Are Extending Their $5 Meal Deals to Draw Customers
The Extreme Lengths Costco Goes to Keep Your Rotisserie Chicken Cheap
Grocery Stores Have Hiked Prices Beyond Inflation — and Their Stocks Are Soaring
According to a report from Money.com, fast food chains are increasingly turning to chicken as a more affordable and popular option for consumers. The article states that chicken has always been a cheaper option for restaurants compared to beef, and this gap has only widened in recent years. In fact, government data shows that beef prices rose significantly last year while chicken prices only saw a slight increase.
The rising popularity of chicken can also be attributed to its perceived health benefits and the marketability of dipping sauce combinations. This has led to a surge in sales for chains that specialize in chicken, such as Raising Cane’s and Wingstop. Even established fast food giants like McDonald’s are taking notice, recently introducing new chicken menu items in response to consumer demand.
The article also mentions that fast food restaurants are facing pressure from consumers to keep prices low, and chicken offers a more cost-effective solution. This has led to the extension of $5 meal deals at many fast food chains in an effort to draw in customers.
In conclusion, the rise of chicken in the fast food industry is not only due to its affordability, but also its appeal to younger consumers and its marketability. As the demand for chicken continues to grow, it is likely that we will see more fast food chains incorporating it into their menus.
Source:Read More