As the expense of living continues to put additional strain on already struggling households, the fast food business McDonald’s has decided to raise the prices of five of the products on its menu.
The company explained that the increase in prices is due to increased costs of both food and energy and will take effect on Wednesday.
The price of a cheeseburger was raised by the fast food giant for the first time in more than 14 years during the summer of 2017.
McDonald’s sales, which increased by more than 10% in the previous year, have not been affected by the soaring inflation that is occurring all across the world.
McDonald’s has stated that it is dedicated to maintaining “low prices.”
“However, similar to other types of businesses, the effects of the rise in prices for both food and energy continue to have a negative impact on both our company and our franchisees.”
According to McDonald’s, franchisees are responsible for determining their own rates; however, the company provided the following prices as a suggestion.
- Mayo Chicken, ranging from.99 pence to 1.19 pence
- Prices range from £1.59 to £1.79 for the bacon mayo chicken.
- Price increase from £2.49 to £2.69 for the bacon double cheeseburger
- The price of a medium carbonated drink goes up from £1.39 to £1.49, while the price of a triple cheeseburger goes up from £2.69 to £2.89
In addition, McDonald’s said that it was testing out new meal packages known as “Saver Meals” at 120 locations in the South East of England. One “Saver Meal” includes a cheeseburger, a side order, and a drink for the price of $3.99.
It stated that the meal bundles were being tested “to determine if this may be an additional approach to deliver value to our clients.” [T]he meal bundles were being tested.
soaring prices in general
As the cost of things like food, petrol, and energy skyrockets, prices across the board have been climbing at a rapid pace around the world.
The conflict between Russia and Ukraine contributed to an increase in the cost of energy, despite the fact that the cost of crude oil and gas has been on the decline since the summer of 2014.
The annual rate of inflation in the UK was 10.1% in the year to January, down from 10.5% in December, and the inflation rate of food prices is at its highest level in 45 years.
This means that across the board, the price of an item that was one pound in January of the previous year will be more than ten pence higher this coming January.
Salaries are not increasing at the same rate as prices are, which puts strain on household budgets.
Companies have responded to the rise in expenses by increasing prices across the board.
Both Coca-Cola and PepsiCo, which together control the majority of the global market for soft drinks, were successful in having repeated price increases implemented in 2022.
The price of a bottle of Coca-Cola grew by 11% around the globe, while the price of a bottle of Pepsi rose by 14%.
Coca-Cola announced on Tuesday that it would once again be increasing the prices of its carbonated beverages throughout the year.
Even McDonald’s has had to hike their prices before today.
The price of cheeseburgers, along with a variety of other goods, such as morning meals, large coffees, McNugget sharing boxes, and upgrades from medium to large meals, were all raised over the summer of 2017.
After increasing prices and seeing more customers at its retail locations in 2022, the company’s revenue increased by 10.9%.
