How much have prices actually gone up, and does that change the calculation?
A real-world test of how price increases affect fast food comes from California's 2024 minimum wage hike to $20 for fast food workers. A 2026 study analyzing official price data across 21 US cities found that prices in California rose 3.3% to 3.6% more than in other areas by the end of 2024 [2]. That's a noticeable jump—roughly an extra 30 to 40 cents on a $10 meal. The study also noted that some of this increase likely came from restaurants changing their recipes or ingredients (product quality choices) to manage costs [2]. So when consumers face a price hike, they aren't just paying more—they may also be getting a slightly different product, which directly feeds into their 'is it worth it?' calculation.
What really drives the 'worth it' decision: quality, price, or what others think?
Research consistently shows that consumers weigh multiple factors, but not all equally. A 2023 study of 170 fast-food customers found that product quality, price, and service quality each had a significant, independent effect on whether someone decided to buy [4]. In other words, if the burger tastes worse or the wait gets longer after a price increase, people are measurably less likely to buy. A separate 2021 study of 532 people in Romania dug deeper into the psychology and found that the single strongest predictor of intention to eat fast food wasn't personal taste or budget—it was 'subjective norms,' meaning what the person believes their friends and family think they should do [1]. This social pressure (e.g., 'my friends still go there') was roughly twice as influential as the person's own rational attitude toward the food [1]. So even after a price hike, if a consumer's social circle still approves of the habit, they are much more likely to keep paying.
When does a price increase kill loyalty, and when does it not matter?
The key to whether a price increase feels 'fair' lies in how it interacts with other factors. A 2021 study on fast-food loyalty found that 'price fairness'—whether the customer feels the price matches the value—directly influences both customer satisfaction and the restaurant's brand image [5]. Importantly, that same study showed that food quality and employee service quality also drive satisfaction and brand image, but the physical environment (the look of the restaurant) did not [5]. This means a consumer might accept a higher price if the food still tastes great and the service is fast and friendly, but a price hike combined with a drop in either quality or service is a double hit that erodes loyalty. The 2023 study confirms this: when all three—quality, price, and service—are good together, the combined effect on purchasing decisions is even stronger than any single factor alone [4].
About These Sources
This answer is built on 5 peer-reviewed studies — published from 2021 to 2026, 2 from 2024 or later, 1 in Q1 journals, collectively cited 126 times — selected as the most relevant from 5 studies that passed quality screening, drawn from 49 papers retrieved from a database of over 500 million.
Sources used in this answer
Determinants of Fast-Food Consumption in Romania: An Application of the Theory of Planned Behavior
In a survey of 532 people in Romania, the strongest predictor of intention to eat fast food was subjective norms (what friends/family think), which was about twice as influential as the person's own rational attitude [1].
The Effects of California's $20 Fast Food Minimum Wage on Prices
After California's $20 fast food minimum wage, prices in California rose 3.3% to 3.6% more than in other US cities, partly due to changes in product quality and production methods [2].
A Feasibility Study on a Vegan Fast-Food Restaurant in Calamba, Laguna
A feasibility study for a vegan fast-food restaurant in the Philippines found growing consumer interest in health-conscious and sustainable options, suggesting price sensitivity may shift toward value-aligned choices [3].
Fast-Food Consumer Purchasing Decisions: Quality, Price, and Service Impact
In a study of 170 fast-food consumers, product quality, price, and service quality each significantly and independently influenced purchasing decisions, with a combined effect even stronger [4].
Antecedents involved in developing fast-food restaurant customer loyalty
A study of fast-food loyalty found that price fairness, food quality, and employee service quality all drive customer satisfaction and brand image, while the physical environment does not [5].