The global supply chain plays a major role in determining fast food prices. Fast food restaurants depend on a steady flow of ingredients such as meat, vegetables, bread, sauces, and packaging. When any part of this chain is disrupted, costs increase and fast food prices rise.
Weather conditions affect farming, which impacts the availability of crops used in fast food. Droughts, floods, and poor harvests reduce supply and increase costs. When ingredients become scarce, restaurants must pay more, leading to higher fast food prices.
Transportation is another key factor. Fuel prices, shipping delays, and transportation shortages can raise delivery costs. These expenses are reflected in fast food prices at the restaurant level.
Fast food brands that have strong supplier relationships can better manage these challenges. However, even large companies cannot completely avoid increases in fast food prices caused by global supply issues.
