Slate Daily Feed Slate Money | Money Talks: Chicken and a Cold Drink
Nov 25, 2025
Heather Haddon, a Restaurant reporter for The Wall Street Journal with a focus on the fast food industry, joins to unpack the dynamics of pricing and operations. She dives into the "Value Wars" among fast-food giants like McDonald's and Chili's and the strategies Starbucks is using to revive its sales. Additionally, Haddon discusses Chick-fil-A’s innovative drive-thru operations, emphasizing their efficiency improvements, and the overall impact of rising costs on fast food pricing. Her insights reveal how these trends reflect broader American culture.
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McDonald's Value Price Reboot
- McDonald's negotiated with franchisees to cut combo prices and heavily subsidized advertising to restore value perception.
- The chain aims to hold lower prices through coordinated extra value meals and follow performance in January.
Franchisees Drive Local Prices
- Franchisees set most day-to-day drive-thru prices and control local operations despite national advertising deals.
- That autonomy makes fast-food chains operate like networks of small businesses rather than centrally run stores.
Why Fast Food Got Pricier
- Price increases stem from higher labor, input costs, tariffs on packaging, insurance, and other rising expenses.
- McDonald's says its price moves are at or below CPI, but consumers still resent post-pandemic price jumps.