McDonald’s pushes back on hefty price hikes, including $18 Big Mac meal
McDonald’s pushes back on hefty price hikes, including $18 Big Mac meal
McDonald's Addresses Misconceptions About Price Hikes
McDonald's Exec Debunks $18 Big Mac Meal Rumor
McDonald's U.S. President Joe Erlinger clarified that the $18 Big Mac meal is an outlier and not representative of the company's general pricing, emphasizing that such high prices are exceptions.
Inflation and Price Adjustments
Erlinger addressed concerns about excessive price increases, stating that the average Big Mac price rose by 21% since 2019 due to inflation, which is a reasonable adjustment.
Franchisee Pricing Autonomy
He explained that over 95% of McDonald's U.S. locations are franchise-operated, and these franchisees set their own prices based on operational costs, reflecting the economic pressures they face.
Promotional Strategies to Boost Sales
Amidst a challenging economic environment with flat or declining traffic, McDonald's is planning promotions to attract customers and enhance sales, demonstrating proactive measures to maintain market strength.
What percentage of McDonald's restaurants in the U.S. are operated by franchisees, and how does this affect menu pricing?
About 95% of McDonald's restaurants in the U.S. are operated by franchisees, who are responsible for setting menu prices for their restaurants. These prices reflect the increased costs of running their businesses.
What specific claims has McDonald's U.S. President Joe Erlinger addressed regarding the pricing of Big Mac meals?
McDonald's U.S. President Joe Erlinger has addressed claims regarding the pricing of Big Mac meals, specifically debunking the rumor that the company has raised prices significantly beyond inflationary rates. In an open letter, he mentioned viral social posts and poorly sourced reports suggesting that the prices of a Big Mac have risen by 100% since 2019. Erlinger clarified that the average price of a Big Mac in 2019 was $4.39, and it is currently $5.29, reflecting a 21% increase in line with inflationary pressures.