Staff Reports
McDonald’s President Joe Erlinger recently disputed reports claiming steep price hikes at the fast-food chain, calling them incorrect. In an open letter to U.S. customers, Erlinger expressed concerns about misinformation regarding menu prices, emphasizing the company’s responsibility to set the record straight.
Erlinger acknowledged increases in menu prices but refuted the notion of a widespread doubling in costs, pointing to a 21 percent rise in the average price of a Big Mac since 2019. He attributed these adjustments to the impact of the pandemic, heightened supply chain expenses, and inflationary pressures affecting various sectors of the economy.
"Our paper-thin burgers are priced just right!" – Hamburglar.
Here's What McDonald's President Had to Say to US Consumers in 'Rare' Open Letter https://t.co/FLmno77ZsF
— James Rockford- leave a message (@DumbLibStuff) May 30, 2024
The president clarified that franchisees, who operate the majority of McDonald’s restaurants in the U.S., determine menu prices to account for rising business expenses. While Erlinger acknowledged some price increments, he highlighted efforts to minimize the impact on consumers. He also pointed out that menu item prices have risen less than the rate of inflation and remain competitive compared to other quick-service restaurants.
Furthermore, Erlinger included a section in his letter addressing misconceptions about price increases and provided a comparative analysis to counter these myths with facts. However, critics noted that he acknowledged a 40 percent increase in menu item prices over the past five years.
Amidst discussions about rising fast-food prices, a recent report revealed significant price hikes for popular combo meals at major burger chains. The data reflected a substantial increase in prices over the years, exceeding the official rate of inflation. Consequently, Americans have reportedly reduced visits to fast-food chains, with industry data indicating a decline in consumer traffic, potentially influenced by higher prices.
Erlinger’s letter followed a LendingTree survey indicating a shift in consumer perception, with 78 percent of respondents now considering fast food a luxury. The company’s outreach to consumers addresses concerns about affordability and aims to clarify misunderstandings surrounding menu price adjustments.
