Why McDonald's Is Losing Its Low-Income Customers: Report

McDonald's is losing one of its core customer bases — low-income households, according to a new report from the Los Angeles Times.

According to the California-based fast food chain, the rising costs of essentials such as beef and salaries have forced the business to raise its prices.

While the company struggled in the early 2000s, McDonald's was able to turn the tide quickly with the introduction of its Dollar Menu.

But that menu is no longer affordable for the chain. In turn, McDonald's is no longer affordable for its lower-income customers, the Times reported.

Experts say McDonald’s isn’t the only company alienating one of its core customer bases. Low-income Americans are feeling the squeeze across industries — from automotive to airlines, economist Adam Josephson told the newspaper.

“Happy Meals at McDonald’s are prohibitively expensive for some people, because there’s been so much inflation,” Josephson said.

Read more from the Los Angeles Times: McDonald’s is losing its low-income customers. Economists call it a symptom of the stark wealth divide