close video Fast food restaurants doing ‘everything they can’ to keep prices low: Andy Puzder
Former CKE Restaurants CEO Andy Puzder gives an industry look inside how fast food companies are trying to keep up with inflation and criticizes Biden’s tax policy.
According to a recent study surveying American consumers on fast-food prices, a burger chain came out on top for having the most overpriced menu. The study comes as Americans say that they have felt the pinch of inflation and price hikes like never before.
The study conducted by Preply said Shake Shack was ranked the most overpriced restaurant for chains, followed by Five Guys and the Sugar Factory.
In March, Shake Shack raised its prices by 3%.
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Shake Shack is an American fast-casual restaurant that serves a variety of burgers, hot dogs, fries, chicken nuggets, sandwiches, soft serve and more. (iStock / iStock)
FOX Business has reached out to Shake Shack and Five Guys for comment.
To make their determinations, researchers analyzed the language of 57,245 reviews for over 10,000 restaurants in 50 cities across the country.
To determine the scores for being overpriced, the authors looked for keywords — such as "pricey" or "rip-off" — in restaurant reviews in each city and analyzed how frequently they were used by patrons.
The cities with the most overpriced restaurants were Oakland and San Jose, California, and Virginia Beach, Virginia., according to the study.
"With three of the five cities in the top five being in California, this highlights how California’s high restaurant prices align with the state’s soaring cost of living," the study said. "In addition to higher prices in general, California’s residents are known for prioritizing high-quality ingredients, which cost more."
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McDonald’s U.S. President Joe Erlinger appeared on the “Today” show to discuss rising fast food prices. (Jakub Porzycki/NurPhoto via Getty Images | NBC screenshot / Fox News)
"Unfortunately, some restaurants miss the mark. They create inflated menu prices that don’t align with what might be considered reasonable for the quality and quantity of food offered."
New York City was at the top of the list of municipalities with the least overpriced restaurants.
The study comes as many restaurants and fast-food chains have hiked prices. In May, McDonald’s USA President, Joe Erlinger, defended the hikes, refuting reports that the increases were significant.
Shake Shack’s new avocado bacon burger and avocado bacon chicken. Both come with sliced avocado and applewood smoked bacon. (Shake Shack / Fox News)
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"Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates," he said. "The average price of a Big Mac in the U.S. was $4.39 in 2019. Despite a global pandemic and historic rises in supply chain costs, wages and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%)."