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McDonald's Slams Reports on Rising Prices

restaurants

By Penelope W.

- Jun 3, 2024

Responding to waves of criticisms about prices going off the rails, McDonald's USA President, Joe Erlinger, has set the record straight about the pricing policy of the famous fast-food chain. Addressing an open letter to the food chain's U.S. fans, Erlinger reflected on McDonald's decades-long commitment to value for money in the wake of unsettling reports about an $18 Big Mac in Connecticut and rising costs in the fast-food sector.

In the nostalgia-tinged letter, Erlinger recounted his personal experiences with the brand. "Like other Americans who valued McDonald's as an affordable family dining destination, my own childhood memories are filled with that special excitement felt when my parents turned into a McDonald's," Erlinger wrote, highlighting the conviction that McDonald's isn't merely just about great burgers and fries but also about the assurance of a convenient, reasonably priced meal.

Erlinger's sentiments resonated with recent findings from a LendingTree survey, revealing that 78% of participants now view fast food as a luxury. The survey also exposed that 65% have recently been taken aback by a fast-food bill, with LendingTree noting this new trend as a "significant cultural shift and a troubling sign".

In the face of such evolving perceptions, Erlinger underscored McDonald's ongoing commitment to affordability, rendering any suggestions about the company's enormous price rises as misleading. He launched a spirited defense, opposing claims that McDonald's has hiked prices well beyond inflation levels.

Discussing the infamous $18 Big Mac meal, he clarified that it was an isolated case, a price registered at just one of over 13,700 outlets in the U.S. Erlinger expressed concern about people assuming this as a standard rather than an anomaly, fearing misconceptions that Big Mac prices have doubled since 2019.

Not neglecting the fact that prices have indeed risen, Erlinger stated that a 21% increase took the average price of a Big Mac from $4.39 in 2019 to $5.29 in 2024. The medium fries witnessed a steeper increase of 44%. Boiling this down to pressures like inflation, he emphasized that pricing decisions are mainly in the hands of franchise owners who run more than 95% of USA outlets, not the company itself.

Erlinger informed that most menu items have seen increases less than the inflation rate and remain competitive with other fast-food restaurants. He added that over 90% of U.S. franchisees offer meal bundles costing $4 or less.

In attempting to eliminate misconceptions around McDonald’s pricing policy, Erlinger kept the spotlight on the value McDonald's delivers. He signed off by encouraging readers to use the McDonald's app in order to fully exploit the value the brand offers. The full statement can be found on McDonald's corporate website, where bargain-hunting customers can also find the McCheapest map for best deals.