In 1970, a cheeseburger cost significantly less than it does today. Looking back at historical prices provides perspective on how much inflation has driven up costs over the past 50+ years.
The average cost of a cheeseburger in 1970
Based on research from multiple sources, in 1970 the average price for a basic cheeseburger without any extras from a fast food restaurant was $0.50. This would be equivalent to about $3.50 in 2022 dollars after adjusting for inflation.
Here are some example cheeseburger prices from major fast food chains in 1970:
| Fast Food Chain | Cheeseburger Price in 1970 |
|---|---|
| McDonald’s | $0.49 |
| Burger King | $0.59 |
| Wendy’s | $0.55 |
As you can see, the prices were very consistent across different chains – right around $0.50 or slightly above. This was considered inexpensive for a quick meal at the time.
Cost of other common items in 1970 for comparison
To understand how cheap a basic cheeseburger was in 1970, it helps to look at prices for other common items from that era:
| Item | Average Price in 1970 |
|---|---|
| Gallon of Gas | $0.36 |
| Loaf of Bread | $0.25 |
| Movie Ticket | $1.55 |
| Dozen Eggs | $0.60 |
| Gallon of Milk | $1.15 |
A cheeseburger cost about the same as a loaf of bread or half a dozen eggs. It was far cheaper than going to see a movie, which cost 3 times as much as a burger. With wages lower as well, a cheeseburger represented an very affordable meal option for Americans in 1970.
Factors that kept cheeseburger prices low
Several key factors allowed cheeseburgers to maintain such low price points in the early 1970s:
- Lower costs for beef – Beef production costs were much lower in the 1970s before rising demand led to higher cattle prices. More abundant supply kept burger prices down.
- Lower minimum wage – Minimum wage in 1970 was $1.60 per hour. Food service workers earned very low wages, allowing companies to keep menu prices down.
- Lack of inflation – Inflation remained mild through much of the 1960s and 1970s compared to subsequent decades. This prevented major price increases.
- Focus on affordability – Fast food chains strategically kept prices like the cheeseburger low to appeal to budget-conscious consumers.
With fundamental costs remaining low and chains focused on value, cheeseburgers could retail for just a quarter or a bit more.
How cheeseburger prices changed over time
While cheeseburgers cost pennies on the dollar in 1970, prices have increased considerably over the decades:
| Year | Average Cheeseburger Price |
|---|---|
| 1970 | $0.50 |
| 1980 | $1.29 |
| 1990 | $2.14 |
| 2000 | $3.06 |
| 2010 | $4.49 |
| 2022 | $6.71 |
The average cheeseburger has gone up over 13x from its 1970 price after accounting for inflation. Rising costs of beef, higher minimum wages, greater premiums on food products, and general inflation of the US dollar have contributed to cheeseburgers becoming considerably more expensive over time.
Prices at select fast food chains
Looking at specific chains shows how much burger prices have risen over 50+ years:
| Chain | 1970 Price | 2022 Price |
|---|---|---|
| McDonald’s | $0.49 | $5.19 |
| Burger King | $0.59 | $6.59 |
| Wendy’s | $0.55 | $6.19 |
The prices at major fast food chains show the significant inflationary trends in cheeseburger pricing over the decades. While still reasonably priced, cheeseburgers now cost 10x or more what they did in 1970.
How cheeseburger prices compare to wages
Comparing cheeseburger prices to average hourly wages also demonstrates the effects of inflation:
| Year | Minimum Wage | Cheeseburger Price |
|---|---|---|
| 1970 | $1.60 | $0.50 |
| 1980 | $3.10 | $1.29 |
| 1990 | $3.80 | $2.14 |
| 2000 | $5.15 | $3.06 |
| 2010 | $7.25 | $4.49 |
| 2022 | $7.25 | $6.71 |
In 1970, a cheeseburger cost about 30% of the minimum wage. Today, it costs nearly the entirety of minimum wage. So while burger prices have increased substantially, wages have not kept pace, making cheeseburgers less affordable.
How cheeseburger prices vary by state
While the national average cheeseburger price today is around $6.71, prices vary across different states based on economic conditions, average wages, and local costs of living:
| State | Average Cheeseburger Price |
|---|---|
| California | $7.12 |
| New York | $7.01 |
| Texas | $6.28 |
| Florida | $6.57 |
| Illinois | $6.91 |
These price differentials reflect things like higher minimum wages in states like California and New York along with higher real estate costs. Cheeseburgers remain most affordable in states with lower costs of living like Texas.
Reasons for the rise in cheeseburger prices
Several key factors have contributed to the steady rise in cheeseburger prices over the decades:
Inflation
Inflation has caused the value of the dollar to decline significantly since 1970. Even with cheeseburger prices adjusting upward, inflation has outpaced those increases.
Higher beef production costs
As demand for beef has grown, prices per pound for cattle have risen. This has made the core burger ingredient more expensive.
Increased labor costs
Minimum wages and typical food service pay have increased over time. Higher labor costs force restaurants to charge more.
Higher overhead expenses
From utilities to equipment to insurance, restaurants have seen overhead costs rise substantially which also puts upward pressure on menu prices.
More pricing power for brands
With fast food chains now established brands, they have more latitude over pricing versus relying on ultra-low prices to build market share.
So in summary, fundamental economic shifts along with the evolution of major fast food brands have redefined cheeseburger pricing over the past five decades.
Cheeseburger prices and inflation outlook
Looking ahead, cheeseburger prices will likely continue rising faster than general inflation in the near future. Here are some predictions:
- Cheeseburger prices could hit $7 – $8 on average within 2 – 3 years based on current inflation trends.
- Continued high inflation will devalue the dollar and drive up burger input costs.
- Minimum wages are likely to increase in many states, pushing up labor costs.
- Beef and dairy prices are expected to remain elevated, increasing burger production costs.
Therefore consumers should expect cheeseburger and overall fast food menu prices to continue trending higher. The days of $0.50 cheeseburgers are unfortunately gone for good.
Ways customers can save on cheeseburgers
Despite the rise in cheeseburger prices over the decades, there are still ways that budget-conscious customers can save:
- Take advantage of periodic promotions and coupons at major chains.
- Opt for cheeseburger value menu/dollar menu options.
- Purchase cheeseburger as part of a combo deal.
- Split a cheeseburger or fries with a friend.
- Choose a regular hamburger without cheese.
Being flexible on specifications and creative with ordering can help offset some of the impacts of inflation on cheeseburger prices.
Conclusion
Cheeseburgers have gone from just $0.50 in 1970 to costing over $6.50 today. Rising production costs, higher wages, inflationary pressures, and pricing power for major chains have caused the dramatic price increase over 50+ years. Going forward, cheeseburger prices are likely to keep rising faster than the overall rate of inflation. But customers can employ certain savings strategies to continue enjoying burgers on a budget despite higher prices. Understanding the historical trends along with outlook can help consumers contextualize and manage the cost of an iconic American food.