Why Did McDonald’s Big Mac Meal Price Hit $18?

Instagram | moho_mmedibrahim | Erlinger clarified that the Big Mac meal price hasn’t doubled since 2019.

McDonald’s U.S. President, Joe Erlinger, addressed these concerns head-on. Contrary to viral tweets and media reports suggesting astronomical price increases, Erlinger clarified that the Big Mac meal price hasn’t doubled since 2019. According to McDonald’s, the average price of a Big Mac was $4.39 in 2019 and now stands at $5.29—a 20.5% increase, not the dramatic rise some reports have implied.

Understanding the Pricing Dynamics

It’s important to understand the factors contributing to these price changes. The average U.S. price of a Big Mac meal, including a sandwich, fries, and a drink, is currently $9.29. While this represents an increase, it’s a reflection of broader economic trends rather than arbitrary pricing decisions.

Franchisee Pricing Autonomy

A significant point Erlinger highlighted is the autonomy of McDonald’s franchisees, who own and operate 95% of U.S. locations. These franchisees set their own pricing based on local economic conditions. The $18 Big Mac meal in Connecticut, which sparked widespread outrage, was an outlier rather than the norm. Franchisees strive to keep prices reasonable, balancing operational costs and consumer affordability.

The Impact of Rising Costs

Instagram | bosmakproperties | Over the past five years, McDonald’s menu item prices have risen by an average of 40%.

McDonald’s has seen a 40% average increase in menu item prices over the past five years. This increase aligns with a similar rise in the costs of labor, packaging, and food. For example, medium fries that cost $2.29 in 2019 now average $3.29—a 44% increase. While these numbers might seem steep, they mirror broader economic inflation trends, with overall consumer prices rising by 21% since December 2019.

Addressing Customer Concerns

Amidst these changes, McDonald’s has been proactive in maintaining customer loyalty. The company has observed a noticeable slowdown in store traffic, especially in the first quarter of this year, as inflation-weary customers dine out less frequently. To counter this, McDonald’s is introducing new deals to offer better value.

Upcoming Deals and Offers

Instagram | thefreebieguy | McDonald’s introduces new value combo: sandwich, four-piece McNugget, small fries, and small drink.

Starting next month, McDonald’s plans to roll out a $5 meal deal nationwide. This deal will include a sandwich, a four-piece McNugget, small fries, and a small drink. Erlinger expressed hope that these deals will resonate with customers, emphasizing that the focus remains on delivering value and affordability. “We must remain laser-focused on value and affordability,” he stated, reflecting the company’s commitment to its customers.

Staying Informed

For consumers, it’s crucial to stay informed and understand the factors behind price changes. McDonald’s commitment to transparency is a step in the right direction, helping customers make informed choices. As Erlinger noted, providing accurate information is key to maintaining trust with the nearly 90% of the U.S. population that McDonald’s serves annually.

While the big mac meal price has seen a rise, it’s essential to view these changes through the lens of economic trends and operational costs. McDonald’s continues to adapt and introduce value-oriented deals, aiming to keep its offerings affordable for its vast customer base. So next time you see a tweet or a news headline about McDonald’s prices, you’ll know the full story behind the numbers.