Tuesday, November 28, 2023

The McDonald's theory of why everyone thinks the economy sucks

https://www.natesilver.net/p/the-mcdonalds-theory-of-why-everyone

The point is simply this: it’s very easy to spend a lot more these days on fast food in ways that don’t necessarily show up in inflation data. Three years ago, I might have walked down the block and ordered a Super Duper Double Cheeseburger, fries and a Diet Coke for $9.67 before tax. Now, because Uber Eats and the restaurant have correctly determined that I’m lazy and they can price-discriminate against me and I fell for their viral marketing campaign, I’ll have them deliver me a Triple Super Duper Cheeseburger Deluxe with grilled onions, plus fries and a Diet Coke — at a price of $24.25 before tax.

And don’t think this experience — or the Idaho man’s experience — is atypical. Getting fast food delivered is pretty damned expensive. In-store, fast food can be expensive too if you start messing with upgrades, add-ons and specialty items. This is why McDonald’s revenues are still rocketing up even as inflation has slowed down.