---
title: "Fast-Food Industry Faces Industry Challenges But Anticipates Recovery with Value Deals"
url: https://burnaze.com/article/c2bc7340-a072-493b-a2bb-a7758fa57429
source: "1851 Franchise"
original_url: https://1851franchise.com/fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997
category: "QSR"
industry: "Restaurants"
segment: "QSR"
published: 2024-08-09T16:11:12.000Z
modified: 2026-11-01T01:04:13.757Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/35333d58b31225f2444779dba8b30be73559.jpg
---

# Fast-Food Industry Faces Industry Challenges But Anticipates Recovery with Value Deals

**TL;DR:** The fast-food industry is facing challenges due to rising costs and consumer debt, leading to a decline in consumer traffic, but some chains are leveraging value meal deals to attract customers. Despite current setbacks, there is optimism for recovery, with potential rate cuts by the Federal Reserve and improved value offerings expected to boost consumer spending power.

*originally published in 1851 Franchise on 2024-08-09. [Read the original](https://1851franchise.com/fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997).*

## Story

The fast-food industry is facing challenges, highlighted by McDonald’s disappointing second-quarter performance and closures of several other fast-food franchises, Franchise Wire recently reported.

A Lending Tree survey revealed that 78% of respondents now see fast food as a luxury due to rising costs. This economic strain has caused a decrease in consumer traffic, with McDonald's experiencing its first global sales drop in 13 quarters and an overall 1% downturn at stores open for at least a year. Foot traffic at U.S. fast-food restaurants fell by 2% in the first half of the year, and experts predict continued pressure from high inflation and rising consumer debt.

The industry is seeing notable closures, with brands like Arby’s, Bojangles, Boston Market, Burger King, Dairy Queen, Hardee’s, KFC, Papa John’s, Popeyes and Wendy’s shutting down multiple locations. Despite these setbacks, some fast-food chains are leveraging value meal deals to attract customers, and the inherent popularity of fast food in the U.S. remains strong. Americans spend an average of $1,200 annually at quick-service restaurants, and 84% eat fast food at least once a week.

Looking ahead, there is optimism for recovery. The Federal Reserve’s potential rate cuts could ease borrowing costs, increasing consumer spending power. Analysts, like Brian Mulberry from Zacks Investment Management, foresee a rebound in fast-food traffic later in the year, bolstered by improved value offerings. While the current dip raises concerns, the industry's long-term growth prospects remain intact, suggesting this downturn may be temporary.

In the first part of August, 1851 Franchise is rolling out a series of articles spotlighting the leading restaurant franchises across different categories. This series is designed to offer in-depth information, assisting prospective franchisees in making well-informed decisions about where to invest and identifying the industry sectors with significant growth potential.

## Entities

- 1851 Franchise (publication)
- General (sector)
- McDonald's (company)
- Wendy's (company)
- Burger King (company)
- KFC (company)
- Papa Johns (company)
- Popeyes (company)
- Arby's (company)
- Dairy Queen (company)
- Bojangles (company)
- Hardee's (company)

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Originally reported by 1851 Franchise (https://1851franchise.com/fast-food-industry-faces-inflation-woes-but-hopes-for-rebound-with-value-deals-and-economic-relief-2726997). Summarized by Burnaze (https://burnaze.com/article/c2bc7340-a072-493b-a2bb-a7758fa57429).