A wake-up call for the fast-food giant and a snapshot of today’s economy
In today’s America, even breakfast isn’t safe from inflation. McDonald’s CEO Chris Kempczinski has raised concerns about a troubling trend: millions of lower- and middle-income Americans are cutting back on dining out — and some are skipping meals altogether.
A Tale of Two Americas
Speaking on CNBC’s Squawk Box, Kempczinski revealed a widening divide in consumer behavior.
Upper-income households (earning $100,000+): Still spending, still traveling, still confident.
Lower- and middle-income households: Feeling the squeeze, reducing restaurant visits, and in some cases, skipping meals — especially breakfast.
“It’s really kind of a two-tier economy,” Kempczinski explained. “If you’re upper-income, things are good. But for middle- and lower-income customers, traffic is down double digits.”
Why Dining Out Feels More Expensive Than Ever
The numbers back him up. According to the U.S. Department of Agriculture:
Food-at-home inflation (grocery stores): +2.2% year-over-year (July 2024–July 2025).
Food-away-from-home inflation (restaurants, fast food): +3.9% year-over-year.
That gap makes eating out a noticeably pricier choice. Families looking to stretch every dollar often choose to cook at home — a shift McDonald’s and other chains are feeling in their bottom lines.
Breakfast: The First Casualty
For many Americans, breakfast is becoming the most skipped meal of the day. Whether it’s grabbing cereal at home or simply going without, consumers are deciding that a McMuffin or a breakfast burrito is no longer a “must-have” expense.
This shift doesn’t just hurt fast-food chains — it reflects how households are cutting corners in small but telling ways.
The Ripple Effect: Restaurants Under Pressure
Restaurants across the country are facing a perfect storm: higher labor costs, inflation, competition, and cautious customers. The fallout has been dramatic:
Red Lobster
TGI Fridays
Bertucci’s
Bar Louie
Fernando’s Mexican Cuisine
These and many more have closed locations or filed for bankruptcy in recent years. Even iconic brands are finding it difficult to keep pace with rising costs and shifting consumer habits.
Food Costs: A Growing Source of Stress
For the average American household, food isn’t just nourishment, it’s becoming a financial burden. According to a July 2025 poll by The Associated Press–NORC Center for Public Affairs Research:
53% of Americans say food costs are a major source of stress.
33% say grocery expenses are at least a minor stress.
The simple act of feeding a family has turned into a balancing act between affordability and necessity.
What This Means for America
Kempczinski’s warning isn’t just about McDonald’s sales, it’s a reflection of how economic pressures are reshaping daily life. For millions of Americans, choices about food are no longer about taste or convenience but about survival.
The golden arches may still be glowing, but beneath them, the story of America’s economic divide is playing out, one skipped breakfast at a time.
