With fast food prices rising by 3.2% over the past year, outpacing inflation, the personal-finance company WalletHub today released its report on the Cities Where People Spend the Most & Least on Fast Food to shed light on where these purchases take the biggest bite out of Americans’ wallets.
To determine where consumers spend the most and least relative to their earnings, WalletHub analyzed the average prices of burgers, pizza and fried chicken sandwiches in 100 of the largest cities, then compared them to the median household income.
| Highest % of Income Spent | Lowest % of Income Spent | |
| 1. Cleveland, OH (0.68%) | 91. Huntington Beach, CA (0.28%) | |
| 2. Detroit, MI (0.67%) | 92. Scottsdale, AZ (0.28%) | |
| 3. Newark, NJ (0.62%) | 93. Seattle, WA (0.27%) | |
| 4. Baltimore, MD (0.61%) | 94. Irvine, CA (0.26%) | |
| 5. Birmingham, AL (0.60%) | 95. San Jose, CA (0.26%) | |
| 6. Hialeah, FL (0.59%) | 96. San Francisco, CA (0.26%) | |
| 7. Buffalo, NY (0.57%) | 97. Gilbert, AZ (0.24%) | |
| 8. Milwaukee, WI (0.56%) | 98. Plano, TX (0.24%) | |
| 9. Toledo, OH (0.56%) | 99. Austin, TX (0.23%) | |
| 10. Miami, FL (0.53%) | 100. Fremont, CA (0.20%) | |
To view the full report and your city’s rank, please visit:
https://wallethub.com/edu/
“Fast food has grown more and more expensive in recent years, outpacing inflation. As a result, it’s worthwhile for consumers to think critically about whether the convenience of fast food really justifies the cost – and about how much room they have in their budgets for this luxury. The city in which you live can have a big impact on how much fast food costs, too. People in the most expensive cities shell out over three times more than residents of the least expensive cities, relative to the median income.”
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“Cleveland residents pay more for fast food relative to their incomes than people in any other city. Buying just one fast-food burger, a fried chicken sandwich, and a small pizza costs residents 0.68% of the median monthly household income. For comparison, the same fast food purchases would only cost 0.20% of the median monthly household income in Fremont, CA.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What tips do you have to help people avoid overspending on fast food?
“Fast food might seem cheap, but if you buy it often, the costs can add up fast. Planning meals in advance and deciding how much you can spend on eating out each week are easy ways to manage your expenses. Just keeping track of how many times you grab fast food can help you be more aware of your spending.”
Michael F. Sheridan, Ed.D. – Visiting Associate Professor, Temple University Japan
“Fast food is one of those budgeting categories where a lot of little things can add up quickly to something big. In many cases people aren't fully aware of how much money they spend on fast food in a given month because they only see relatively small daily expenses. One of the most helpful actions a person can take to reduce their fast-food expenses is to become completely aware of how much your expenses add up to over a given month. A quick stop for lunch might cost somewhere around $15 on average. But if you do that every week-day, that adds up to $300 for the month, which can be a significant amount for some budgets.”
Luke Erickson, Ph.D., AFC® – Personal Finance Extension Specialist, University of Idaho; President, Idaho Financial Literacy Coalition
How important is budgeting when it comes to saving money on fast food?
“As with all monthly expenses, it is important to create a budget to make sure you are managing your money that aligns with your values and wants. For temptations like fast food, consider using the cash envelope - this means withdrawing enough cash for your monthly allocation for fast food and then paying for your meals in cash. Once you run out of cash, then you are done eating fast food for the rest of the month. However, for some households fast food is a necessity because ‘time fatigue’ is real. Those households being managed by single parents working full time (or multiple jobs) and/or attending school or volunteering find little time for cooking dinner at the end of the day. For those in this situation, it is important to be honest with yourself and your budget. Revisit your monthly budget and do not be ashamed to increase your monthly allocation for fast food. Rest assured this is just a temporary situation because eventually you will finish school, complete the volunteer assignment, or earn enough money to stabilize your household income and have more time to buy and prepare groceries.”
Erick O. Bell, CPA – Professor, Las Positas College
“Budgeting is really important because those little fast-food costs can sneak up on you. A solid budget doesn’t stop you from eating fast food – it just sets limits so families can focus on other important things like saving money, going on trips, or paying for healthcare.”
Michael F. Sheridan, Ed.D. – Visiting Associate Professor, Temple University Japan
How is the current social and economic environment influencing household spending on fast food?
“Like many other things, fast food has gone through a significant amount of inflation. In many cases you have to spend 30%-50% more than you did a few years ago for a fast-food stop. Those expenses add up and can crowd out spending on other important things in a budget. Like so many things, it all starts with awareness of what is actually happening and then deciding if what is being spent actually aligns with your values and goals.”
Luke Erickson, Ph.D., AFC® – Personal Finance Extension Specialist, University of Idaho; President, Idaho Financial Literacy Coalition
“As grocery prices go up, a lot of families see fast food as a cheaper option. At the same time, there’s a growing trend of cooking at home for better health and to save money. Fast food also serves a social and emotional purpose, acting as ‘comfort spending’ when times are tough.”
Michael F. Sheridan, Ed.D. – Visiting Associate Professor, Temple University Japan
More From WalletHub
- States Where People Spend the Most & Least on Fast Food
- States Where People Spend the Most & Least on Groceries
- States Where People Spend the Most & Least on Health Care
- Most Overweight & Obese States in America
- Best & Worst Places to Raise a Family
- States With the Best & Worst Budgeters
- States Where People Have the Highest Income
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