McDonald's Raises Prices Again

The decision by McDonald's to raise prices on five core menu items brings into play many aspects of business economics such as the likely PED, the effect of rising costs, food price inflation, the cost of living crisis, brand image, bundling, franchises and much more.

McDonald's is increasing prices blaming higher food and energy costs. Four of their burgers are rising by 19p and the cost of drinks is also rising. Back in July 2022, McDonald’s lifted the price of 99p cheeseburger for first time in 14 years.

In a post on social media, McDonald's claimed that prices are determined by the individual restaurants and may differ as per the location.

For the record -

• A Bacon Mayo Chicken burger will increase from £1.59 to £1.79, a 12.6% increase.
• Meanwhile, its Bacon Double Cheeseburger is becoming 8% more expensive as it will rise from £2.49 to £2.69.
• Its Triple Cheeseburger is increasing by 7.4% from £2.69 to £2.89 and medium-sized fizzy drinks will rise by 7.1% from £1.39 to £1.49.

Regulars will very quickly notice the price hikes - but the key issue is whether this causes a change in their buying behaviour. Is McDonald's becoming too expensive? Will customers consider switching to other fast-food outlets? Or is brand loyalty and default buying behaviour too strong to make much of a difference?