Slate Money Money Talks: Chicken and a Cold Drink
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Nov 25, 2025 Heather Haddon, a restaurant reporter for The Wall Street Journal, dives into the fast food industry's pricing battles, responding to consumer backlash over rising menu costs. She explores how chains like McDonald's navigate franchise negotiations and value expectations. The conversation highlights Chick-fil-A's innovative drive-thru strategies, leveraging analytics to enhance efficiency. Starbucks is also in focus, grappling with declining sales and shifting consumer preferences. Heather shares insights into the broader implications of fast food on America's cultural landscape.
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McDonald's Price Cut Experiment
- McDonald's negotiated with franchisees to cut combo prices and is spending millions to promote cheaper value meals.
- The chain hopes price cuts will restore perception of affordability and boost traffic after post-pandemic price backlash.
Franchisees Control Local Pricing
- Franchisees set most day-to-day drive-thru and in-store prices, not the corporate headquarters.
- That autonomy helps franchisees manage labor and operations but can raise inconsistency in customer prices.
Why Fast Food Prices Rose
- Price increases reflect higher labor, input, packaging and insurance costs rather than only corporate greed.
- Imported packaging tariffs and rising beef and labor costs contributed to sustained higher menu prices.