The cost of a basic cheeseburger, fries and soda has climbed across the U.S., making an inexpensive quick meal increasingly difficult to find.
A DoorDash State of Local Commerce report, cited by Fox Business Digital in a report published Sunday, found the average price of the three-item meal rose 3.2% over the past year. Only Austin and Laredo, Texas, Lincoln, Nebraska, and Detroit, Michigan, had average prices below $15.
Regional Prices Tell The Story
Austin was the cheapest city at $12.94, while the same meal averaged $28.28 in Anchorage, Alaska. The 10 best-value cities were concentrated in the Midwest and Texas, with Laredo at $13.39, Lincoln at $13.86, Detroit at $14.99 and Philadelphia at $15.41 rounding out the top five.
Jessica Lachs, chief analytics officer at DoorDash Inc. (NASDAQ:DASH), said the index provides a straightforward way to compare restaurant prices across markets. "The Cheeseburger Index is a really great way to distill the information into a simple, fun and relatable metric," she told Fox Business Digital.
The price gap also highlights differences in local operating costs. DoorDash said cities in the South and Southeast tend to benefit from structurally lower operating costs, while higher restaurant prices are being driven by expenses including labor, rent and energy, rather than food costs alone.
"There isn’t one economy. There are a lot of local economies," Lachs said.
She pointed to the difference between the two markets: "The same basket of goods, a cheeseburger, fries and a drink, costs $12.94 on average in Austin, Texas, but $28.28 in Anchorage, Alaska."
Food affordability pressures are also reaching households’ grocery budgets. An Urban Institute study found more than one-quarter of working-age adults who used credit cards to buy groceries either could not pay their balances in full or missed minimum payments. About 1 in 10 relied on buy now, pay later loans for groceries, while grocery prices have climbed 32% over five years.
Food Costs Put Pressure on Households
The broader affordability squeeze has also prompted lawmakers to consider new ways to reduce food costs. Rep. Pramila Jayapal (D-Wash.) introduced the Fresh Bucks for Fresh Produce Act, which would establish a pilot program providing eligible households with an additional $60 a month for fruits and vegetables.
The pressure is also affecting access to food assistance. SNAP enrollment declined over the past year following stricter federal work requirements, with about 37 million people enrolled as of March. The changes have prompted Democrats and other advocates to push for measures aimed at protecting food assistance and easing food costs.
Another affordability measure showed how widespread the pressure has become: A Washington Post-Ipsos poll found 66% of Americans said groceries had become unaffordable, including households earning more than $100,000.
For consumers, the difference is increasingly geographic. A $15 bill can still cover the full meal in Austin, but in Anchorage it would pay for barely more than half of the same cheeseburger, fries and drink.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo Courtesy: Foodio on Shutterstock.com
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