The following article is from regular contributor Kosmo. Yes, we’re finally moving on from the election!
It’s been difficult to miss the price increases that have hit fast-food restaurants. There was a viral post showing an $18 Big Mac combo. This wasn’t a very representative McDonald’s—it was at a rest stop in Connecticut. Restaurants in convenient locations are often more expensive than their mainstream cousins. Anyone who flies regularly has realized this since airports are probably second only to entertainment venues in terms of price.
Cleanliness can also be a concern at some counter-service restaurants. Since there’s not a predictable turnover of tables, it can be difficult to ensure that every table is cleaned after each use. To some extent, this is reasonable. However, I was recently at a McDonalds and noticed that the neighboring table was littered with french fries. That doesn’t sound terrible – but it was 9 AM. They hadn’t served french fries since the prior evening. The closing crew and opening crew both missed the mess.
Texas Roadhouse vs. Five Guys?
Nonetheless, fast food prices are increasing. Here are some options at fast food and fast casual joints near me (Iowa). All prices are before tax.
- McDonalds: Double quarter pounder with cheese combo meal: $10.29. Want to skip the sugary soft drink? That will cost you 59 cents more.
- Hardees: Frisco Burger Combo: $12.69. Skipping the drink does cut this to $11.21.
- Five guys: Bacon cheeseburger, little fries, regular drink: $20.87. You can cut the price to $17.88 by skipping a drink.
- Subway: 6-inch Ultimate BMT, chips, drink: $10.68. $9.84 without the drink.
How does that compare to some casual restaurants?
- Local Mexican restaurant: Three hard shells tacos: $7.25 + tip.
- Chilis: OldTimer with cheese, fries, soft drink, chips, and salsa. $10.99 + tip.
- Texas Roadhouse: 6 oz sirloin, fries, cup of chili. $13.99 + tip. ($11.99 before 6 PM)
- Applebee’s 2 for $20.
A few caveats:
- Adding a drink will typically add $2.50 – $3.50 at a table service restaurant. However, I often drink water in table service restaurants, whereas I almost always drink soft drinks at fast food places. For health reasons, I should skip soft drinks more often, but I find it difficult to avoid the temptation of the combo meal. For the sake of comparison, I’ve listed the no-drink price for the fast food options as well.
- It’s customary to tip and table service restaurants.
- All of the meals above are the items I would most often order at that particular restaurant.
I’ve found myself gravitating more toward sit-down restaurants, particularly Texas Roadhouse. While the food at Texas Roadhouse isn’t haute cuisine, a (small) steak, chili, and fries for fourteen bucks seems like a good deal in this economy. Sometimes, I’ll even place a to-go order for a couple of bowls of chili ($5 each). I like the chili and can fill it up in a bowl. Interestingly, a to-go cup or bowl has significantly more chili than the same serving in the restaurant.
Sometimes, I’ll pay a few extra dollars to get a larger steak and save a bit for leftovers. The next day, I’ll cut the leftover steak into small strips, smother it in shredded cheddar cheese, and pop it into the microwave. Steak fromage!
[Editor’s Tip: Leftover steak becomes an easy burrito or taco. I always have fajitas and salsa on hand, as well as a can of pinto beans. I’ve been enjoying Aldi’s organic 90-second rice recently – every store probably has it in some form. It’s extremely frugal and helps me get to my fiber goals.]
Is there any hope for fast food?
Fast food has one advantage: it is (supposedly) fast. However, many fast food places are not very fast, often with the excuse of their food being “made to order.” The local Culvers usually has about ten cars waiting for food. However, if you’re prepared, you can eat quickly at a sit-down restaurant. There are times when I’ll eat solo at Texas Roadhouse. I’ll click a few buttons to get on the waitlist before I leave home, and I’m ready to order the minute I sit down. I create minimal work for the server and let them flip the table quickly.
One way to cut the price is to use fast food apps and coupons. The Subway near my house doesn’t participate in any coupons, but the one near my office (45 miles away) does. I can get that same meal for $6.99. I can get a bacon, egg, and cheese biscuit at McDonald’s for $2. Until recently, McDonald’s had a deal where you got two medium fries free with the purchase of 20 nuggets.
Another option is to get a value meal and add an item. At Wendy’s, I’ll get the $5 biggie bag (small burger, fries, drink) and add a cup of chili. This is several dollars less than a combo meal with one of the larger burgers. Last night, that was what I intended to get, but the Wendy’s was out of chili. I was slightly annoyed (because I was really looking forward to the chili), but that $5 biggie meal ended up being enough food for me. Even with the added chili, the price is about $8.50.
Perhaps my favorite coupon is the $7.99 one-topping pizza at Dominoes. Most people hate Dominoes, but I like it. My 14 year old son and I can share a large pizza – meaning that we both ate for $8. That’s not much more expensive that making a pizza from scratch – although my from-scratch pizza are better and definitely have more toppings.
The verdict
I believe that the fast food and fast casual niches will survive, but I do think they’ll get squeezed and could lose market share. In many cases, they are faster than casual restaurants. So, if you’re in a rush, counter service will be a better option than table service. Historically, they’ve also been cheaper than casual restaurants. As prices at counter service restaurants have increased, this price difference has shrunk or disappeared completely. If I’m not in a hurry, and I have to choose between paying $17.88 for a burger and fries from Five Guys or $14 (plus tip) for a steak, fries, and chili at Texas Roadhouse, it’s a slam dunk. I’ll take Texas Roadhouse every time. [Note: despite appearances, this is not a paid advertisement for Texas Roadhouse.]
Editor’s Thoughts
It’s Lazy Man back for this section. I added a link above about how to save money on fast food in general. However, I have specifically written an article to help you save money at McDonald’s.
I’m not as fast as Kosmo when it comes to casual restaurants. I’m more likely to order a beer, but even if I order a soda, the Texas Roadhouse is going to be $20 after the tip. That’s about twice as much as the McDonald’s example. However, I almost never spend $10 to eat at McDonald’s. Usually, I’m looking to just get through lunch, so a 400-ish calorie sandwich on the value menu works for me. That’s usually about $2 or maybe $2.50 with tax. Sometimes, I have my own soda with me. If I don’t, most McDonald’s have a $1 any-size drink.
For me, it’s often the choice between taking more time and spending $20, or hitting the drive-thru for about $4. That’s enough of a gap for me.
However, I understand what Kosmo is staying here. My family (me, my wife, and two boys 10 and 11) went to a movie a month ago and had Chick-Fil-A before. I think the final price was around $60. Ouch! We can often do Applebees for about the same price or even cheaper if we time it for the half-priced appetizers. My wife and I share those and the kids still like their kid’s meals.
I think fast food places have realized that they can up the prices because they provide speed and no expectation of tipping. Personally, they serve completely different purposes. McDonald’s is food on the go and Applebee’s is for having a little family time outside the house. This leaves Subway and Chipotle in a weird spot in our house. I use them more as a treat or reward. They are true meal substitutes and not just trying to bridge the gap like a value menu sandwich.
Your thoughts
What about you, loyal readers? Are you a fast food junkie, or prefer to sit down for a meal? Do you have any (legal) hacks to save a few bucks on your meal?
