As inflation rages around the world, fast-food companies are coming under pressure – their costs are rising but they are struggling to pass that on to customers as the growing cost of living prompts them to tighten their wallets.
The BBC reported this week that McDonald’s has put up the price of cheeseburgers for the first time in more than 14 years, due to growing cost pressures.
In an email to customers, McDonald’s UK and Ireland chief executive Alistair Macrow said the company faced “tough choices” about its prices and had delayed making the changes for as long as it could, the BBC said.
The costs of breakfast meals, large coffees, McNugget share boxes and upgrades from medium to large meals would also be increasing in price, the report said.
The fast-food company will be looking closely at where it can increase its profit margins from here. It has already raised prices where it can in response to the higher costs. It’s likely to try and improve its margins through targeted promotional activities on more profitable products and apply selective price increases to claw back some of the higher costs.
