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Takeout appears to be a reasonably priced indulgence. According to a recent survey, the average American orders takeout or delivery 4.5 times a month. The majority (76%) cite enjoyment as their motivation for enjoyment in takeout, slightly surpassing the percentage (75%) driven by convenience.
There is a certain point where convenience and enjoyment meet and become one. As one academic notes, “eating in has the appeal of the familiar home-related ambiance of socialization and familiarity and does not need extra grooming preparation.” In simpler terms, takeout is the dinner of full-household goblin mode. Complete enjoyment with minimal exertion.
Interestingly, Debrett’s, considered the ultimate “arbiter of modern manners,” deems it acceptable to serve takeout at a dinner party, as long as it is presented “eaten off warmed plates and decanted into suitable china serving dishes.”
Regardless, the expectation is not for takeout to break the bank. However, costs vary depending on your location. For instance, Burger King in Hawaii costs 33.96% more than in Maine, while Taco Bell in Alabama is 21.81% less than the national average, based on analyzed Grubhub prices. To provide a comprehensive overview of value and pricing, NetCredit assessed the relative prices for seven top takeout joints across the United States.
Anchorage (AK) and Honolulu (HI) pay over 18% more than the national average for takeout, the highest among U.S. cities.
Hattiesburg (MS) offers the best value for takeout at -12.14% below the national average.
Alaska has the highest premium on takeout, at 18.17% above the national average.
Texas enjoys the best deal, paying -9.58% less than the national average for takeout.
Which U.S. States Pay The Biggest Price Premium For Takeouts and Major Chains?
Alaska boasts the highest markup on examined takeout food, surpassing other U.S. states by a considerable margin. With less than a million acres of farmland, Alaska is known for its notably expensive food, leading to an 18.17% premium on takeout compared to the calculated national average. Despite this added cost, residents in remote areas of Alaska are willing to pay extra, often ranging from $10 to $30, for delivery services like DoorDash or Uber Eats to literally transport their orders home by air.
Katie Burrows, an airline assistant in southwest Alaska, explains, “There’s literally no roads to connect these people to McDonald’s or to KFC or whatever. Paying an expediter or DoorDashing something to our office and paying $20 is really not that expensive compared to going into town.”
The cheapest states tend to be low-cost-of-living areas with strong agricultural or energy sectors, which may contribute to bringing prices down. Restaurants in these states must also factor in competitive pricing since they are represented in high numbers: fifth-cheapest Alabama has the most fast food joints overall, and the cheapest of all, Texas, has the most big-name pizza outlets. States such as these and Tennessee, Mississippi and Utah — the remainder of the five cheapest — lend themselves to the drive-thru experience.
Which U.S. Cities Pay The Biggest Price Premium For Takeouts?
The trio of Anchorage, Honolulu, and Fairbanks, representing the non-contiguous states, claim the top spots as the three most expensive cities for takeout. Supply challenges in these regions contribute to elevated costs. Following closely is Los Angeles, where the average takeout expenses surpass the calculated national average by 17.93%. The combination of relatively high restaurant taxes and an overall elevated cost of living amplifies the price tag for takeaways in Californian cities like LA and San Diego.
In contrast, Texas emerges as the most cost-effective state overall, boasting two cities among the ten cheapest. Remarkably, the cities with the most favorable deals are approximately 6% more economical than even their own state average. Hattiesburg (MS), for instance, is -12.14% cheaper than the calculated national average, outperforming the Mississippi state average, which is -6.60% below the national average. Wheeling (-11.59%) and Parkersburg (-11.52%), both located in West Virginia, demonstrate a parallel trend of offering prices significantly below their respective state averages.
The Price Premium For Burger King Takeout by U.S. State
Established in Florida in 1954, Burger King continues to offer Floridians an advantageous deal on their hamburger and fries. In the Sunshine State, a Whopper, French Fries, and Bacon Double Cheeseburger cost precisely -6% less than the calculated national average for these menu items. For comparison, McDonald’s is only -2.46% cheaper in Florida than in the rest of the country.
On the opposite coast, across the Eastern Pacific, Hawaii faces the highest costs for Burger King, paying 33.96% over the national average, which is 14.75% more than the second-highest, California (19.21%). Even Burger King’s renowned ‘ $1 taco‘ was priced at $1.39 in the Aloha State when it was available.
The Price Premium For KFC Takeout by U.S. State
Utah stands out as the most cost-effective location for KFC, marking the site of Colonel Sanders’ inaugural Kentucky Fried Chicken franchise in 1952. Specifically, the Spicy Chicken Sandwich Combo, 8 pc. Chicken Only, and Secret Recipe Fries come at a remarkable -18.22% below the national average for these menu items, presenting a notable -5.43% reduction compared to the second-least expensive state, Texas (-12.79%). The economic accessibility of KFC in mid-century Utah played a pivotal role in its swift success. Professor Laura Gelfand from Utah State University emphasizes, “It was not only affordable, but the Southern roots of the recipe also gave it an intriguing blend of foreign authenticity and warm charm.”
Furthermore, in Kentucky, where Colonel Sanders introduced his renowned chicken, prices are a significant -7.08% under the national average. Conversely, Kentuckians experience a 5.96% higher cost than the national average when opting for chicken at Popeyes.
The Price Premium For McDonald’s Takeout by U.S. State
In Alaska, Massachusetts, and Vermont, regular McDonald’s dishes are notably more expensive than the national average. Earlier this year, Massachusetts gained attention in the fast-food industry for being home to America’s most expensive Big Mac. According to Riley Walz, the creator of the Fast Food Index, the priciest Big Mac, costing $7.89 [U.S.], is found in Lee, Massachusetts. Interestingly, just a few hundred feet away on the other side of the highway at another McDonald’s, the same Big Mac is sold for $1.50 less. In response to this revelation, McDonald’s told Business Insider that “prices are ultimately at the discretion of our franchisees and may vary by restaurant.”
The Price Premium For Pizza Hut Takeout by U.S. State
Pizza Hut displays the narrowest price range from the least to the most expensive offerings in the United States. The cost of a 14” Meat Lover’s Pizza, Veggie Lover’s Pizza, and Pepperoni Lover’s Pizza in Hawaii, standing at 12.68% above the national average, contrasts with Michigan’s pricing, which is notably lower at -12.96% below average, marking a 25.64% difference. A geographical pattern emerges, with four of the five most economical states forming a cross-regional strip from the Rust Belt to the Sunbelt in the mid-East. The eastern states of America, known for their higher concentration of pizza establishments, likely contribute to a more competitive pricing landscape.
For those in Hawaii, opting for a local restaurant might be a wiser choice, especially given that Pizza Hut is comparatively pricier in this location. Notably, even the ‘Hawaiian’ ham and pineapple pizza is not authentically Hawaiian but rather described as “sort of Greek-Canadian,” as highlighted in our recent price comparison analysis between Pizza Hut and Domino’s.
The Price Premium For Popeyes Takeout by U.S. State
Popeyes draws its name from Gene Hackman’s character in The French Connection, though it was initially named something more plant-friendly: Chicken on the Run. The establishment was founded under its original name in Arabi, New Orleans, in 1972. The Southern-style chicken that the region inspired continues to influence national pricing. In Louisiana, the birthplace of Popeyes, the cost of a Spicy Chicken Sandwich Combo, 2 pc. Signature Chicken Combo, and 12 pc. Nuggets are only 0.28% higher than the national average for these items.
The Price Premium For Subway Takeout by U.S. State
Similar to Popeyes, Subway’s foundational pricing is reflected in its home state, Connecticut, where it stands just 0.40% above the national average. However, once you move beyond Connecticut, the pricing landscape for Subway becomes quite diverse. All of Subway’s U.S. establishments are operated by franchisees who have the authority to set local prices and can also choose to exclude their franchise from accepting certain coupons.
Facing substantial challenges in recent years, Subway made the decision to close over 1,000 branches in 2021. Notably, New York experienced a significant loss, with 22% of its Subway locations shutting down in just three years. This reduction in numbers may be a contributing factor to the unexpectedly appealing prices in the state, which are currently approximately -4.67% below the national average.
The Price Premium For Taco Bell Takeout by U.S. State
Taco Bell’s roots are deeply embedded in California, and this influence is reflected in the pricing structure for Californians, who enjoy a reasonable deal with a mere 2.54% premium above the national average. This stands in contrast to the 9.44% extra they pay for Pizza Hut and the 19.21% increase for Burger King. The substantial presence of Taco Bell in California, with 1,748 locations accounting for around 11% of its entire fleet, creates a competitive environment among franchisees, compelling them to price their tacos attractively.
Methology
The NetCredit team’s examination of takeout food pricing is based on data sourced from Grubhub.com, providing insights into the states and cities where residents pay the most for such services.
To conduct this analysis, they compiled menus from various fast-food chains across 260 cities, representing the most populated areas in each state. The focus was on popular items from each chain, specifically:
McDonald’s: Big Mac, French Fries, 10 pc. Chicken McNuggets, 10 Piece McNuggets.
The team calculated the average national prices for all items collectively and for each individual chain. By comparing these national averages to the prices within each state and city, they determined the percentage premium for takeout across these chains and for each chain individually.
