Fast food is expensive. Applebee's and Chili's are moving in

McDonald’s and other fast food chains are increasing their prices, leading customers to consider alternatives such as sit-down restaurants like Applebee’s. Applebee’s CEO argues that their burger, priced at $9.99, offers better value than a fast food burger. This competition intensifies as fast food prices continue to rise, causing dine-in spots to run promotions that cost about the same as a fast food meal. As a result, restaurants are battling for cost-conscious consumers and trying to attract them with deals and lower prices. These price hikes have led to declining traffic and a smaller market for restaurants. The increasing prices at fast food and fast casual restaurants are particularly noticeable compared to casual dining sit-down restaurants. To retain customers, fast food chains like McDonald’s are working on value menus targeted at low-income consumers. Meanwhile, Applebee’s is struggling with sales due to lower-income customers visiting less frequently. Sit-down restaurants are now making a case for themselves by highlighting their value proposition against fast food chains.