Chick-fil-A to shell out $4.4 million in cash and gift cards after customers accused it of inflating delivery prices, report says

• Chick-fil-A reportedly has settled a lawsuit accusing the chain of inflating delivery prices.
• The suit said the chain promised low delivery fees, but then "secretly" increased menu prices. 
• Eligible customers will receive settlement via cash or gift card, according to the news site TopClassActions. 

Chick-fil-A reportedly has agreed to shell out $4.4 million to customers who accused the chain of promising low-delivery fees, while "secretly" inflating menu prices as much as 30% during the pandemic.

The legal-news site TopClassActions first reported the settlement, which comes less than a month after a group of six plaintiffs filed a lawsuit seeking class-action status in a Georgia federal court. According to the news outlet, the fried chicken chain did not admit guilt in the settlement.

In their lawsuit, the plaintiffs said they filed the proposed class action on behalf of themselves and people nationwide who "ordered food delivery through the Chick-fil-A mobile app or website, and were assessed higher delivery charges than represented."

Eligible class members are expected to receive their settlement via a $29.25 cash payment or $29.25 gift card, TopClassActions said, adding that Chick-fil-A agreed to disclose on its app and website that menu prices "may be higher for delivery orders." According to the news site, the parties also agreed to a "direct email notice system" to provide information to those potentially affected.

Chick-fil-A and law firms representing the plaintiffs did not return requests for comment.

In the suit, which Insider obtained, the plaintiffs alleged that the chain falsely advertised "free delivery" or "low-price delivery" through its mobile app during the pandemic. According to the suit, Chick-fil-A was then "secretly inflating menu prices on delivery orders only."

The suit alleged that the chain was inflating base menu prices by as much as 30% on delivery orders compared to in-store prices.

"On delivery orders only, Chick-fil-A secretly marks up food prices for delivery orders by a hefty 25-30%," the suit states. "In other words, the identical order of a 30-count chicken nuggets costs approximately $5-6 more when ordered for delivery than when ordered via the same mobile app for pickup, or when ordered in-store."

The suit, filed October 3, concluded: "By falsely marketing a free or low-cost delivery charge, Chick-fil-A deceives consumers into making online food purchases they otherwise would not make."

Inflating prices on delivery food has been around since before the pandemic. But lately, customers are noticing extreme price inflation – and they don't like it.

In a recent report, Insider found prices for Chipotle, Chick-fil-A, and McDonald's were 20% to 38% higher on delivery orders made through apps like Uber Eats and DoorDash. Restaurant chains set menu prices, not delivery apps.

In the case of Chick-fil-A, Insider discovered that the chain was marking up the price of a traditional fried chicken sandwich on DoorDash by nearly 30%.

"Marked-up menu prices are one of the top customer complaints DoorDash receives," DoorDash told Insider. "This is one reason – among many – why DoorDash encourages restaurant partners to maintain delivery menu prices that more closely reflect in-store menu prices."

Are you a Chick-fil-A insider with insight to share? Got a tip? Contact this reporter via email at nluna@insider.com. Or 714-269-8873