Among the last REPORTS with high menu prices and new efforts for it bring customers back, a member of McDonald's top team is speaking directly to customers.
IN an open letter customers on Wednesday, Joe Erlinger, president of McDonald's USA, addressed reports that menu prices have risen more than 100% in the past five years and rebuked claims that the famous burger chain raised prices above standard inflationary rates.
“Recently, we have seen viral social posts and poorly sourced reports that McDonald's has raised prices significantly beyond inflationary rates. This is incorrect,” Erlinger writes.
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Erlinger notes that most McDonald's are owned by franchisees, and menu prices are set by the owners to “account for the increased costs of running their businesses.” Food and paper costs have risen by 35% nationally since 2019.
However, that doesn't mean knowing there's an $18 Big Mac in one menu in Connecticut it's not confusing – even to him.
“I can tell you that it frustrates and disturbs me, and many of our franchisees, when I hear of an $18 Big Mac meal being sold — even if it was in one US location out of more than 13,700,” he wrote.
“Inflationary pressures have affected all sectors of the economy, including ours,” continued Erlinger. “That's why prices for many of our menu items have increased less than the rate of inflation – and remain well within the range of other quick service restaurants.”
McDonald's says Egg McMuffin prices have risen an average of 23% since 2019, and Big Macs have risen an average of 21% over the same period.
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McDonald's recently declined a study that claims that prices have increased.
“This is not an accurate representation of historical or current prices at McDonald's restaurants and the 2024 average prices listed are significantly inflated,” the chain said entrepreneur earlier this month.
Meanwhile, the chain remains hopeful that menu changes and future value deals will help retain customers and keep prices affordable.
“I fully expect prices at your local McDonald's to be an area of conversation and focus in the coming months,” Erlinger wrote. “As it happens, I hope you will find the programs we are launching nationally and locally to be meaningful to you.”
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During a Q1 2024 earnings call in April, McDonald's CEO Chris Kempczinsk confirmed that the chain would double down on value as a focus in the coming months.
“McDonald's has a long history of being the go-to destination for value, and it's imperative that we continue to keep affordability at the forefront for our customers,” Kempczinsk said at the time. “We have literally written the playbook on value and are committed to maintaining our leadership within the industry.”