US Fast Food Threatened?

Photo Credit : Alamy / the EconomistNot surprisingly, sales at fast food chains remained constant during the Recession as people downgraded from full service restaurants. However, all those burgers and fries aren't adding up to easy profits in America, the land of Golden Arches.

Companies that enticed customers with $1 menus during the economic downturn are now hoping those same customers will return and spend more on chicken sandwiches ($5 at KFC) and barbecue pork ribs ($7 at Burger King) or return throughout the day for breakfast items like porridge (McDonald's). The WSJ reported that the rising cost of beef is encouraging fast food companies to promote the sale of chicken and other high profit margin products such as salads and expensive drinks.

Having saturated the US market, fast food companies are actively turning to China, India, Russia, and elsewhere in Europe for growth; another incentive for foreign expansion is the US government's increasing concern with obesity (finally!). A proposed bill in California bans toys in Happy Meals and studies show calorie count declined and revenue increased at Starbucks located near Dunkin' Donuts. Will Americans finally start paying for healthier food?