The Costliest State – Hawaii
According to the study, Hawaii tops the list as the most expensive state for fast food. Here, a Domino’s medium cheese pizza costs an average of $18.99, and a McDonald’s Big Mac is $5.31.
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High import costs and logistical challenges significantly contribute to these prices. The remote location of Hawaii means that almost all ingredients need to be shipped in, driving up the overall cost of food items.
New York's Fast Food Prices
In New York, the average cost of fast food is also high. A Domino’s medium cheese pizza costs $14.49, while a McDonald’s Big Mac is $5.23.
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The state’s high cost of living, expensive real estate, and high operating expenses for businesses drive these prices. Additionally, the dense urban environment adds to the logistical costs, further increasing menu prices at fast food chains.
New Jersey’s Price Tag
New Jersey ranks third, with a Domino’s medium cheese pizza at $13.99 and a McDonald’s Big Mac at $5.19. Like New York, New Jersey faces high real estate and labor costs, impacting fast food prices.
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The proximity to major metropolitan areas like New York City also influences the overall cost structure, making fast food more expensive compared to other regions.
California’s High Prices
California comes in fourth. A Domino’s medium cheese pizza costs $14.99, and a McDonald’s Big Mac is $5.11.
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The recent increase in the minimum wage to $20 per hour has significantly raised menu prices. According to market research firm Datassential, fast food and fast-casual restaurants in the state have raised menu prices by 10% overall, reflecting these higher labor costs.
Maryland’s Fast Food Costs
Maryland ranks fifth with a Domino’s medium cheese pizza costing $13.99 and a Big Mac at $5.03. The state’s high living costs and labor expenses contribute to these higher prices.
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Additionally, Maryland’s proximity to Washington, D.C., further inflates operational costs for fast food chains, making menu items more expensive compared to other states.
Alaska’s Unique Challenge
In Alaska, a Domino’s medium cheese pizza costs $15.99, and a Big Mac is $4.87. The remoteness and high transportation costs for supplies make fast food more expensive here.
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Alaska’s unique geographic challenges require longer and more complex supply chains, which are reflected in the higher prices of fast food items.
Connecticut’s Costs
Connecticut, ranking seventh, sees a Domino’s medium cheese pizza priced at $14.49 and a Big Mac at $4.95. High living costs and operating expenses are key factors driving these prices.
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The state’s affluent population and suburban spread also contribute to higher labor costs, which in turn increase the prices of fast food.
Massachusetts and Washington
In Massachusetts, a Domino’s medium cheese pizza costs $14.99, and a Big Mac $4.87. Washington sees a Domino’s pizza at $16.99 and a Big Mac at $4.67. Both states’ high living costs and labor expenses influence these prices.
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The tech boom in cities like Seattle and Boston also contributes to the rising cost of living, affecting fast food prices.
Least Expensive States
On the flip side, Mississippi offers the cheapest fast food with a Domino’s pizza at $13.49 and a Big Mac at $3.91. States like Arkansas and Alabama also feature lower prices due to lower living and operating costs.
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These states benefit from lower minimum wage requirements and overall lower costs of living, making fast food more affordable.
The Impact of Minimum Wage
California’s recent minimum wage hike from $16 to $20 per hour has led to a 10% increase in fast
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Chains like Chick-fil-A raised prices by 10.6%, Starbucks by 7.8%, Shake Shack by 7.7%, Chipotle by 6.9%, and Taco Bell by 4.1% between February 15 and April 15. These increases reflect the additional labor costs being passed on to consumers.
Expensive, But Not The Priciest
While California is known for its high costs, it’s not the priciest for fast food. States like Hawaii, New York, and New Jersey top the list due to their unique economic challenges.
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Understanding these differences gives a clearer picture of the varying costs across the U.S., highlighting how geographic, economic, and logistical factors contribute to the cost of your favorite fast food items.