Slate Money Talks: "Chicken and a Cold Drink" — Episode Summary

Podcast: Slate Money
Host: Emily Peck (co-host of Slate Money, National Correspondent at Axios)
Guest: Heather Hadden (Restaurants Reporter, Wall Street Journal)
Date: November 25, 2025

Overview

This episode offers a deep dive into the fast food industry, examining how price pressures, shifting consumer expectations, labor dynamics, and operational innovation are reshaping legacy chains like McDonald's and Starbucks, up-and-comers like Shake Shack, and trendsetters in drive-thru operations such as Chick-fil-A. Emily Peck interviews Heather Hadden, who covers restaurants for the Wall Street Journal, for insights into industry shakeups, customer reactions, and the latest business strategies.

Key Topics & Insights

1. The State of the Fast Food Business

Timestamp: 02:08–03:16

• Fast food is traditionally expected to thrive during tough economic times, but currently, it's lagging despite high consumer stress.
• Consumers are still upset over pandemic-era price increases and haven’t necessarily returned despite recent price drops.
• People, even those who can afford it, seem to resent paying premium prices for what’s supposed to be cheap, quick food.
• "They're looking for places to cut back. And...sitting in a drive-through and getting a bag full of food...is an easy way to cut back." (Heather Hadden, 02:49)

2. McDonald’s: The Price Wars and Franchise Dynamics

Timestamp: 03:16–08:28

• The “$18 Big Mac Meal” Outrage: Sparked viral discussion about fast food pricing, further damaging McDonald’s value perception.
  • “It just kind of solidified everything people were feeling about fast food—that it has just gotten too expensive.” (Heather Hadden, 03:47)
• McDonald's responded with $5 meal deals, negotiating with franchisees to drop meal prices by 15%—a rare and notable move.
• Franchisees generally set their own prices, which creates regional price inconsistencies.
  • “The company can set national prices for certain advertised deals...but the day-to-day prices...are set by the franchisee.” (Heather Hadden, 06:22)
• Rising costs are attributed to:
  • Labor shortages and minimum wage hikes (esp. post-pandemic)
  • Increased costs for beef, packaging (much imported), insurance, and delivery
• Value perception is uniquely critical to McDonald’s brand, more so than for premium competitors.

3. The Competitive Landscape: Value and Innovation

Timestamp: 09:38–12:39

• Shake Shack, generally a more premium player, is now offering value deals (e.g., “1, 3, 5” deals exclusive to app orders) to compete directly on price.
• Fast casual and sit-down chains are vying for fast food’s price-conscious base:
  • Chili’s is surging with its “Three for Me” deal ($10.99 for three items), viral TikTok marketing (e.g., “cheese pull” videos), and a focus on value.
    • “Chili’s did a good job marketing…chip replenished, soft drink, big burger for $10.99.” (Heather Hadden, 11:21)
  • Applebee's and others are pushing bundled deals.
• Taco Bell stands out as a rare winner, with strong performance amid sector struggles.

4. The Science (and Art) of Drive-Thru Operations - Chick-fil-A

Timestamp: 12:52–17:00

• Chick-fil-A, despite sit-down roots, has become a drive-thru powerhouse, with massive investments in efficiency and customer satisfaction.
  • “They take footage from inside the cockpit...and from the actual drive-thru and then overhead...to see how they can shave seconds off.” (Heather Hadden, 15:50)
• Use of sports-style video analysis, drones, and “game tape” to optimize throughput.
• Personalized service: Employees with iPads take orders face-to-face; numerous touchpoints ensure customers feel seen even during waits.
• This operational “science” is now a case study for the industry.

5. Digital Ordering, Labor Tech, and the Future of Fast Food Workers

Timestamp: 21:42–25:32

• Kiosks and mobile ordering are reducing the need for cashiers, shifting labor but not eliminating the need for human workers in food prep.
  • “We are doing the work for them. We are punching in our Starbucks orders...We are replacing cashiers in a lot of ways by just doing it ourselves.” (Heather Hadden, 23:09)
• Fast food robotics (e.g., “Flippy” the burger robot) are in testing, but true automation is far off for the kitchen.
• Labor still makes up a rising portion of costs amid high minimum wages and persistent shortages, exacerbated by immigration crackdowns, especially in urban centers like Chicago.
  • “They’re both having fewer customers come in because people are scared to leave their homes...not great for workers.” (Heather Hadden, 25:05)

6. Fast Food and Politics

Timestamp: 25:32–27:42

• President Trump’s visible association with fast food, especially McDonald’s, is both marketing and policy.
• Operators value his administration's defense of the joint employer rule, allowing franchisees to set wages and making unionization harder.
  • "It's why the union campaign is happening at Starbucks and not at McDonald's..." (Heather Hadden, 26:30)
• Labor issues and the need for a less-skilled worker visa program remain top lobbying points for the industry.

7. Starbucks: Struggles and the Rebuild

Timestamp: 27:42–32:34

• Leadership has changed hands multiple times. New CEO Brian Nichol (ex-Chipotle) is focusing on improving both the in-store experience and service speed.
• Starbucks faces:
  • High prices and diminished value perception
  • Chaotic in-store pickup ("mosh pit" of cups)
  • Increased competition from both value (Dunkin’, Blank Street) and grab-and-go (Dutch Bros, Luckin Coffee).
  • “The prices are high. The experience has suffered. You know, there’s a mosh pit of cups when you come to try to pick up your mobile order.” (Emily Peck, 28:55)
• Leaning into customer experience, warmth, and atmosphere, as opposed to rivals’ tech-first/cheap models, may pay dividends—recent promotions (red cups, “bear things”) had strong turnout.

8. New Trends in Fast Food: Chicken, Beverages, and “Cold Everything”

Timestamp: 34:11–35:48

• Chicken sandwiches and cold beverages (including “protein cold foam” drinks) are where consumer demand is headed.
  • “Beverages and chicken. That’s what people are just kind of obsessed with. That’s where the growth is.” (Heather Hadden, 35:19)
• The “cold drink” phenomenon persists year-round among younger consumers.
• Beef and pizza sectors are more challenged.

9. Tipping and Service Fee Fatigue

Timestamp: 35:52–39:03

• Post-pandemic “tip fatigue” is real—digital prompts everywhere have dampened both consumer goodwill and actual tipping rates.
  • “People just have gotten sick of...the digital screens where you’re asked to tip all the time...” (Heather Hadden, 36:07)
• Service fees and elimination of “tip credits” (subsidized wages for tipped staff) are causing resentment, and influencing business models (e.g., McDonald's is now oddly aligned with pro-labor groups pushing for abolishing tipped wages).
  • “McDonald's was aligned with these very liberal groups...No one saw that coming...” (Heather Hadden, 38:28)

10. Fast Food as a Mirror of American Culture

Timestamp: 39:03–40:19

• Fast food is entrepreneurial at heart (franchise model), emblematic of American business and culture.
  • “It feels very American...it’s been a huge growth driver and it’s a huge industry in the US...one of the biggest employers in the country.” (Heather Hadden, 39:19)
• The industry’s biggest challenge now: maintaining the “cheap, fast, and fresh” pillar in the face of unprecedented operating costs.

Memorable Quotes

• “People just expect McDonald's to be cheap...Even our readers...don’t like paying a lot for McDonald's.” (Heather Hadden, 09:00)
• “Chili’s has done really great in a way that a lot of others haven’t. And they all try to emulate it now.” (Heather Hadden, 12:11)
• “They take footage...from the actual drive-thru and then overhead to see the congestion...how can they shave seconds off this process.” (Heather Hadden on Chick-fil-A, 15:50)
• “The previous CEO, for a minute, had kind of like a breakfast value combo for six or seven dollars. And then it went away.” (Heather Hadden, 29:23)
• "[In fast food], every second counts. You don't want people to turn around and just be like, no, I'm not sitting in that drive thru." (Heather Hadden, 16:56)
• “Chicken and a cold drink is the winning—yep, that’s America.” (Heather Hadden, 35:45)
• “Whenever I write one of these stories, people are like, why can't we just be Europe? Why can't it just be like in Europe. Doesn’t work.” (Heather Hadden, 37:22)
• “It feels very American in that sense…and it's one of the biggest employers in the country.” (Heather Hadden, 39:19)

Timestamps for Important Segments

• State of Fast Food / Prices: 02:08–03:16
• McDonald's Price, Franchise Issues: 03:16–08:28
• Competitors/Chili’s, Shake Shack: 09:38–12:39
• Chick-fil-A Drive-Thru Science: 12:52–17:00
• Tech & Labor Impacts: 21:42–25:32
• Political Links: 25:32–27:42
• Starbucks, Value Perception: 27:42–32:34
• Trends (Chicken & Cold Drinks): 34:11–35:48
• Tipping and Labor Policy: 35:52–39:03
• Big Picture/American Mirror: 39:03–40:19

Conclusion

The episode paints a vivid, detailed picture of a fast food industry at a crossroads—innovating, reeling from inflation and labor shifts, and navigating changing tastes—all while remaining a distinctly American business story. The conversation between Emily Peck and Heather Hadden is packed with insights, lively anecdotes, and illuminating industry trends. Whether you’re curious about the true cost behind your Big Mac, the secret science of Chick-fil-A’s drive-thru, or why cold foam is a thing, this episode puts the current fast food era into sharp (and often witty) focus.