Photo: gordon (flickr)
To save money, the rich are trying a different tactic – eating fast food.
According to recent data by American Express Business Insights, fast food restaurants like McDonalds saw a rise in spending by the upper tax bracket.
“As the economy continues to recover, affluent consumers are showing restraint in spending in some areas, but not others,” explains Ed Jay, senior vice president of American Express Business Insights.
In 2010 American Express saw a 4 percent increase in fast food by its most affluent customers.
Instead of spending $50 for a couple at a nice restaurant, the well-off have realized they could save a lot more money by going to a more casual restaurant.
“As wealthy consumers scaled back on consumption overall they started to go to more value- or price-oriented restaurants, and frankly, chains,” says 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.”
It seems like the rich have figured out what the poor have known for years – fast food is cheap.