McDonald’s Executive Responds To Fast Food Chains Price Hike Claims
Are rumors of “McFlation” at McDonald’s becoming greatly exaggerated? Well, a top McDonald’s executive just wrote an open letter to address these claims.
Joe Erlinger, president of McDonald’s USA, said in an open letter Wednesday that the average price of McDonald’s menu items is up around 40% since 2019. The breakdown comes in response to claims on social media that the fast-food company upped prices by more than 100%.
“Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates. This is inaccurate,” Erlinger said.
“The average price of a Big Mac in the U.S. was $4.39 in 2019,” he said. “Despite a global pandemic and historic rises in supply chain costs, wages, and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%).”
Erlinger’s letter comes nearly a year after a McDonald’s customer in Connecticut went viral on social media for posting about a Big Mac combo meal priced at $17.59.
People have strong thoughts about fast food prices.
People have been vocally airing their grievances online about fast food prices, but their discontent goes beyond mere complaints. Customers are tightening their wallets. Frustrated by the rising costs, diners are cutting back on how often they eat out and spending less when they do.
A recent survey conducted by LendingTree, an online loan marketplace, found that nearly 80% of Americans now consider fast food a “luxury” due to high prices.
What is McDonald’s doing to combat these rumors?
McDonald’s, with its pricey burgers, has become a symbol of these elevated fast food prices, and Erlinger is pushing back. Being perceived as overpriced could significantly damage both sales and the company’s reputation. One of the appeals of McDonald’s has always been its affordability.
In an effort to lure back cost-conscious consumers, the burger giant is reportedly considering the introduction of a $5 value meal for a limited period.
Earlier this month, Food & Wine revealed that McDonald’s plans to launch its $5 meal promotion by the end of June.
In his letter, Erlinger acknowledged the potential for a national $5 value meal.
“I fully expect the prices at your local McDonald’s to be an area of conversation and focus in the coming months,” he stated. “As it does, I hope you’ll see the programs we’re launching nationally and locally as meaningful to you.”
According to CNN, a recent statement from the National Owner’s Association, representing McDonald’s franchise operators, suggested that they are still debating whether to implement the promotion. The proposed deal would include chicken nuggets, fries, a soft drink, and either a McDouble or McChicken sandwich for $5.
