METRO DETROIT (WXYZ) — As prices at fast food and fast casual restaurants continue to climb, customers are starting to think twice when they're looking for a quick bite.
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"I think they're too expensive," Pamela told me. "I actually think all fast food restaurants are too expensive."
Customers said when it comes to snagging a meal on the go, fast food isn't as affordable as it used to be. And with the growing price tags, some loyal customers aren't cutting it out completely, but they told me they are making some different choices, like opting for a higher quality meal for a similar price.
"I don't even go in there because there's so much around the area," Pamela said.
"I mostly eat at home because, you know, I try to eat healthy and prices," one man told me.
Experts like Michael Greiner, an associate professor of business management at Oakland University, said the economy is driving these decisions.
"During times of economic hardship, you'll frequently see where companies that are what we call lower cost providers...tend to do better when the economy is struggling, you know, be essentially because consumers are saving their money looking for what are the low-cost things I can spend money on," Greiner said.
And while fast food is meant to be more affordable than sit-down restaurants, Greiner said many are losing customers over price hikes.
"That is based precisely on the fact that they have been struggling lately with the perception that they've become too high-priced," Greiner said.
Restaurants like Chipotle are experiencing a 28 percent drop in their stock this year, and Cava is sliding by 37 percent. This has left restaurants searching for ways to stand out.
"The question is then how much lower cost are the low cost providers relative to the differentiators, right?" Greiner pointed out. "Because at a certain point here, people are gonna say, 'well, the cost that I'm paying is close enough to the differentiator, I may as well go and get the better quality.'"
McDonald's is feeling the heat. After menu prices more than doubled in the last decade, they're beefing up their value menu in hopes of winning back budget-conscious customers.
"I think that you're going to see a real shakeout with a lot of these lower cost restaurants where they're just not going to be able to afford to compete anymore," Greiner said. "They're gonna need to kind of find some new, I guess, entry point into the market."
So whether you're choosing to skip the drive thru or justifying the splurge, consumers are making different decisions. And experts say, the future of the industry may depend on how restaurants respond.
