Dining out has become a luxury Americans can barely afford anymore. Fast food costs have risen significantly in the past decade, and a majority of consumers now view eating fast food as a luxury. According to a LendingTree survey, many Americans have been shocked by their fast-food bill in recent months. According to a 2024 LendingTree survey, 78% of Americans now consider fast food a “luxury” purchase In addition, 65% of Americans have been “shocked” by their fast-food bill in the last few months. Here’s a stark reality check: when two-thirds of Americans experience sticker shock at restaurants that once offered affordable meals, something has gone seriously wrong with the industry’s pricing strategy.
Shake Shack – The Premium Burger Chain That’s Breaking Bank Accounts
According to Preply’s study, Shake Shack received the most complaints of any national chain about its food being overly expensive. An analysis found that Shake Shack has the most customer complaints about overly expensive fast food in America in 2024. This comes after two price hikes in 2024. The chain raised prices by three percent in March, then followed up with another one and a half percent increase in October to offset inflation. The cost of a single hamburger, or ShackBurger as it’s called, typically falls between $6.99 and $7.99, depending on the region. An order will run you around $4.49, bringing your grand total to at least $11.48, and that’s not including one of its namesake shakes or other beverage. One of the most expensive items on the menu is a ShackStack, which features a beef burger, a Shroom burger, cheese, salad, a potato bun, and ShackSauce, and will set you back $17.59. Even a standard hamburger with fries and a small soda comes to more than $20.
Five Guys – Where “Out of Control” Pricing Dominates the Menu
Five Guys, whose prices have been decried as “out of control,” and Sugar Factory followed Shake Shack as the chains with the second and third most overpriced food complaints. Five Guys and Carl’s Jr. rounded out the top three spots for most overpriced fast-food chains. At Five Guys, burgers with two beef patties cost between roughly $9 and $13, depending on where in the country you dine – and that’s before you add the famous Five Guys fries. When you consider that a basic burger and fries at Five Guys can easily cost upward of twenty dollars in many markets, the customer frustration becomes crystal clear. Like Shake Shack, Five Guys also has something of a cult following amongst burger aficionados, and is also considered far too pricey for what it is. Five Guys has always been on the more expensive side for fast food, but prices going up even higher over the past couple of years doesn’t help. The chain’s pricing has pushed what was once considered a splurge into full-blown financial strain territory for many families.
Sugar Factory – Where Instagram-Worthy Treats Come with Eye-Watering Bills
Sugar Factory came in at number three. Sugar Factory’s $30 Instagrammable milkshakes made it the third most overpriced chain. The dessert-focused chain has built its reputation on creating over-the-top treats designed to look good on social media, yet customers consistently complain that the experience doesn’t justify the premium pricing. These elaborate milkshakes and desserts may photograph beautifully, yet they leave many customers feeling like they’ve paid more for the aesthetic than the actual quality of food. The online language tutoring marketplace Preply recently analyzed nearly 60,000 Google reviews for more than 10,000 restaurants in the top 50 cities in the United States. Among the thousands of local and chain eateries considered in the study, Shake Shack received more complaints about overpriced food than any other restaurant chain. On the other hand, Preply also identified restaurants throughout the United States with the most positive reviews about their prices and value. Sugar Factory clearly didn’t make that positive list, instead earning its spot among the most criticized chains for overcharging customers.
Applebee’s – The Neighborhood Grill That Priced Out Its Neighbors
According to FinanceBuzz, Applebee’s raised prices by forty-one percent from 2020 to 2024. The Quesadilla Burger jumped from ten forty-nine five years ago to fifteen ninety-nine today. The particular sting comes from the fact that Applebee’s built its brand on being the place where regular folks could enjoy a night out without breaking the bank, but when your neighborhood grill suddenly costs forty percent more, it’s no longer your neighborhood grill. Sales at U.S. Applebee’s locations open at least a year slumped four point six percent in the first quarter, with customers earning fifty thousand dollars or less visiting less often and spending less when they did. The chain has priced out a significant chunk of its actual neighbors, creating a vicious cycle of higher prices and fewer customers. Texas Roadhouse, TGI Fridays, Applebee’s, and other American-style restaurants raised prices by around 40 percent. When your neighborhood grill suddenly costs forty percent more, it’s no longer your neighborhood grill. The chain’s identity crisis reflects a broader industry problem where restaurants abandon their core value propositions in favor of higher profit margins.
TGI Fridays – The Party Chain That Killed the Fun with High Prices
Fridays has jacked up the priced 43%, according to FinanceBuzz. The beloved sizzling chicken and cheese dish was $12.69 five years ago and is now $20.59. TGI Fridays ranks among the top chains with the steepest price increases, sitting at fourth place behind only Waffle House, IHOP, and Texas Roadhouse. TGI Fridays has faced financial difficulties over the last few years, and filed for bankruptcy in 2024 citing challenges as a result of the 2020 pandemic and “capital structure,” according to a press release. The chain that had over 600 locations worldwide, now has 39 restaurants in the U.S. per its website. The financial struggles reveal how pricing decisions can backfire spectacularly, turning a once-popular destination into a cautionary tale about overpricing in the restaurant industry. Finance Buzz says IHOP and Waffle House had the steepest increases, followed by Texas Roadhouse and TGI Fridays. TGI Fridays is up about 43%, whereas inflation is up 22% since 2020, according to the Bureau of Labor Statistics. The chain’s dramatic collapse from over six hundred locations worldwide to fewer than one hundred in the United States shows exactly what happens when restaurants price themselves into extinction.
These five chains represent a broader trend affecting American dining. Sixty-two percent of Americans are eating fast food less frequently due to rising prices, while sixty-five percent have experienced sticker shock when ordering in the past six months. When restaurants that once offered affordable options begin charging premium prices, they risk losing the very customers who built their success. The industry has created a situation where eating out has become an occasional splurge rather than a routine part of American life, fundamentally changing the relationship between restaurants and their customers. What used to be casual dining has become anything but casual when families have to budget for what once felt spontaneous and affordable.