Rich Americans flock to fast food?????????

Discussion in 'Economics' started by misterno, Feb 28, 2011.

  1. People making 6 figures and go to McDonalds for junk and unhealthy food?

    WTF is wrong with these people?

    http://finance.yahoo.com/news/Rich-...7.html?x=0&sec=topStories&pos=9&asset=&ccode=


    When it comes to cutting back, the rich are learning a little secret the rest of us have always known: fast-food is cheap and good (if not good for you).

    Quick service restaurants, such as McDonald's and Subway, saw a bigger rise in spending by ultra-affluent consumers than any other restaurant type last year, according to the most recent data by American Express Business Insights.

    Lori and Santiago Riviere are among those that have recently been turned on to fast-food dining.

    They call themselves "dinks" -- as in dual income no kids. She's an attorney, he works in finance and together they make "well over six figures." Still, she says the recession has changed her mindset about spending.

    "Dining out on a daily basis was completely normal for us," she says. "Now we eat in or get some form of take out of less expensive food."

    Their economical dinner of choice: Chipotle or Baja Fresh.

    "Instead of going to a restaurant and coming out with a $75 bill you come out with a $25 bill," said Riviere. "Tipping comes into consideration, too."

    Riviere says they order take out most evenings instead of dining out in order to save some extra money for luxury goods.

    "I think it's a sacrifice, but when you have to choose between that and a pair of Jimmy Choos, I'm going to choose the Jimmy Choos."

    In the aftermath of the Great Recession, even the wealthiest Americans are making similar trade offs to curb spending.

    In the fourth quarter of 2010, spending on fast food increased 4% among American Express' most affluent customers, or the top 10% of spenders, the AmEx survey said. Meanwhile, spending on casual dining decreased by 4%.

    "As the economy continues to recover, affluent consumers are showing restraint in spending in some areas, but not others," explained Ed Jay, senior vice president of American Express Business Insights.

    Jay says that affluent consumers exhibited a "return to value" during the recession and are still demonstrating frugal behaviors where possible, like spending more at fast-food restaurants.

    "As wealthy consumers scaled back on consumption overall they started to go to more value or price oriented restaurants, and frankly chains," added Milton Pedraza, the CEO of the Luxury Institute, which tracks spending among wealthy consumers with a minimum annual income of $150,000.

    "No one will do without their iPhone or iPad, and very few people want to forgo travel, but there are other categories that are not priorities," he said. Particularly when it comes to dining, "people have been making trade offs."

    Meanwhile, popular economical chains like McDonald's are lovin' it.

    Danya Proud, a spokeswoman for McDonald's says the company credits its recent growth in part to the addition of McCafe beverages, which include cappuccino, mocha and latté drinks clearly geared toward a more refined palette.
     
  2. Quite shocking. Some people have no problem buying $75 high grade motor oil for their car but would never pay $20 for a bottle of high quality olive oil.
     
  3. This is not food related however it is something that is a wonderful clutter remover from the home.

    In a word, BAKING SODA.

    You can throw away most all household items and replace it all with a box of baking soda.

    For example:

    -with a soft brush you can use it to brush your teeth
    -just bit sprinkled on the arm pits works BETTER than deodorant. I didn't believe it till i tried it
    -Cleaning? Banking soda mixed with a bit of vinegar is less toxic and will clean most anything better than the cabnet full of cleaners you might now have.
    -heart burn? Thoroughly dissolve a bit in water and drink it. heartburn is GONE.
    -Smelly old shoes? Sprinkle a bit in, problem solved.

    I have yet to have my wife go along with the full program however I am convinced Baking soda can cure most of the word's ills. Folks, less is more and baking soda proves it.
     
  4. you can actually find fairly healthy fast food at a reasonable price if you choose wisely.
    subway was mentioned. they serve a good value. you can get a footlong sub loaded with vegies for 5 bucks. that is enough for 2 people.
     
  5. S2007S

    S2007S

    Hard to really believe this story, people making over 6 figures going to places with dollar menus sounds like to me they probably just want a taste of a different kind of food, maybe they want to relive their child hood and just get a taste of a fatty burger, fries and a large soda.... I know people who make under 6 figures that go out 1-2 times a week to places where the average meal for 2 is around $50-$75. I'm not buying this story at all, there is a restaurant not too far from where I am that on any given weekend night you cant find a seat they are so crowded and the average meal for 2 people can go well over $100.
     
  6. It's not how much you make, it's how much of your paycheck goes to paying debt...:D
     
  7. Maybe the dinks are out of money, hence the rise in cc use at fast food. They may have always ate there but paid cash.
     
  8. I knew this guy back in the 90s that made millions from mail order. He lived in a $4 million dollar house and he used to save all the unused taco bell hot sauce packets. I brought a girl over to this house (trying to impress her even though it wasnt my house) but she saw the taco bell packets and said "wtf? This guy isnt rich!" To which one of the staff who worked there said "How do you think rich people stay rich? Its because they dont spend anything."
     
  9. They are probably deep in debt, with negative net wealth and spend more than what they earn.
     
  10. poyayan

    poyayan

    First, 6 figure income is not that rich. Second, Rich/Smart people look for good deal. It is not universal that restaurant s offer better deal than fast food stores
     
    #10     Feb 28, 2011