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McDonald's US President Joe Erlinger has responded to accusations that the fast-food chain's menu prices have risen excessively.
In an unusual statement, Erlinger addressed concerns, asserting that the price increases are not unreasonable.
McDonald's President Addresses Menu Price Hikes Amid Inflation Concerns
CNBC revealed that Erlinger has released an open letter addressing recent claims about the surge in McDonald's menu prices.
Contrary to assertions made by House Republicans and others on social media, Erlinger clarified that the average price of McDonald's menu items has risen by approximately 40% since 2019, not over 100% as claimed.
"Americans across the country are facing tough decisions about where to spend their money," Erlinger remarked. "While we've been striving to offer compelling reasons for our fans to visit us, it's evident that we - along with our franchisees - need to maintain a strong focus on providing value and affordability."
Erlinger provided specifics, noting that the current average price of a Big Mac meal is $9.29, a 27% increase from $7.29 in 2019. Similarly, the cost of a ten-piece McNuggets meal has risen by 28%, while medium French fries are now 44% more expensive than in 2019.
Erlinger explained that these price hikes are attributed to corresponding increases in operational costs, such as crew salaries and goods expenses.
"As a brand that proudly serves nearly 90% of the U.S. population annually, we recognize the importance of ensuring that accurate information is accessible," Erlinger emphasized.
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Consumer Concerns Rise as Prices Climb
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According to The U.S. Sun, McDonald's is under scrutiny from dissatisfied customers due to claims of shrinking portions and rising costs.
According to recent reports, some patrons have voiced complaints about menu items appearing smaller compared to previous years. Notably, the price of the beloved hash browns has reportedly increased by several dollars.
Last month, the Bureau of Labor Statistics confirmed a 0.3% uptick in grocery prices compared to March. Similarly, the expense of ordering take-out has also seen a 0.3% monthly increase, contributing to a 4% surge in the Consumer Price Index (CPI) since April 2023.
A survey conducted by Yahoo! Finance revealed that approximately 78% of consumers now view ordering fast food as a luxury due to inflation. Furthermore, over 62% indicated their intention to dine out less in 2024 due to escalating costs.
In response to these challenges, CEO Chris Kempczinski announced plans for "menu innovation" in 2024, focusing strategically on value and affordability.
As part of these efforts, McDonald's is set to launch a $5 value meal on June 25. Customers will choose between a McChicken, McDouble, or four-piece McNugget, along with fries and a drink.
Retail Drive revealed that McDonald's aims to simplify affordability messaging with a national value program slated for later this year.
A rumored $5 meal bundle will also run for about a month during the summer, following similar moves by Burger King, KFC, Jack in the Box, and Wendy's.
CEO Kempczinski stresses McDonald's commitment to affordability, highlighting its historical association with value. Despite efforts to clarify pricing, consumer perception of fast food costs remains a key influence on spending habits.
A LendingTree study reveals that most Americans find fast food too expensive, with 65% surprised by recent price increases.
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