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The possibility of a two-year recession has been looming over the heads of newly budget-conscious consumers across the country, affecting everything from how they spend their weekends to how they spend their lunch breaks.
Most recently, as Americans find themselves in even more of a mess than anticipated, the fast food industry has been offering more-food-for-less-money deals and has seen profitable results.
After introducing new value menu items and adding new 99-cent deals, McDonald's reported an 8.2 percent increase in same-store sales in just one month, leading some to ask how an economic downturn will affect not just the nation's wallet, but also its health.
The fast food industry has always been considered to be "recession proof" because of its famously low prices and convenience. This year, though, the industry is not just surviving - it's thriving.
Rather than maintain usual prices and enjoy a moderate increase in sales, they have also lured in more consumers by adding "premium" menu items to their value menus.
At Burger King and Wendy's, double cheeseburgers and a larger portion of fries now have a spot on the dollar menu.
As sit-down restaurants and food costs take bigger bites out of consumers' wallets, the fast food industry has jumped at the chance to fill the gap in the market, positioning themselves as an easy alternative for every recession-minded American.
McDonald's Dollar Menu website currently welcomes its visitors to "The Rich Life 101," where a Dollar Menunaire teaches how to live the rich life by eating cheap.
While fresh ingredients from supermarkets are healthier and more nutritious, the Dollar Menunaire appeals to consumers' budget, boasting that "you can get a hot, crispy McChicken sandwich for less than a three-ring binder."
This is a statement that resonates with many spenders, including Baruch sophomore Christine Valentin.
"I'll eat at home or at a sit-down place pretty frequently, but not as often as I would a cheaper fast food place just because I can't spend that much money every time I eat," she said.
The fast food industry has long been accused of being the culprit in the rise of health issues such as heart disease, obesity and diabetes. Even so, the Robert Wood Johnson Foundation, an organization aimed to "reverse childhood obesity," reported that 25 percent of people eat fast food once a day, pre-recession, and BBC News reported in 2005 that two out of three adults are overweight.
While the average American would save a pretty penny by buying dinner at McDonald's instead of budgeting at the grocery store, obesity is taking its toll on the overall economy.
ObesityInAmerica.org estimates that the obesity epidemic will cost the U.S. economy $122.9 billion, with $64.1 billion in direct costs of preventive, diagnostic and treatment services for obesity-related diseases.
They also reported that $58.8 billion is the indirect cost of people unable to work because of these obesity-related conditions.
While the effects of fast food and obesity are startling, the Dollar Menunaire does not seem to care if fast food consumption has been strongly linked to an increased risk of Type II diabetes, high blood pressure, osteoarthritis, stroke, some forms of cancer and coronary heart disease. As recession pressures start weighing down Americans and fast food sales continue to rise, it seems that consumers are definitely caring less.
McDonald's by the numbers...
260 calories in a single hamburger 5.3 percent increase of U.S. sales in October 31,000 restaurants in over 100 countries 130 million pounds of mixed greens served in the U.S. 20 grams of fat in a premium Asian salad with crispy chicken 29 grams of fat in a Big Mac
Source: mcdonalds.com
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