Joe Erlinger, president of McDonald’s USA, addressed concerns about the fast food joint’s menu’s soaring prices in an open letter on Wednesday.
Erlinger acknowledged that McDonald’s menu items have seen a 40 percent rise since 2019.
However, the McDonald’s executive refuted claims that menu price hikes exceeded 100 percent, admitting that inflation has drastically increased food costs.
TheNationalPulse.com reported:
“Americans across the country are making tough calls about where to spend their hard-earned money,” Erlinger said. “And while we’ve been working hard to make sure our fans have great reasons to visit us, it’s clear that we — together with our franchisees — must remain laser-focused on value and affordability.”
Erlinger reported that the cost of a Big Mac meal has risen to $9.29, a 27 percent increase from $7.29 in 2019.
Similarly, a 10-piece McNuggets meal has seen a 28 percent price increase, while medium french fries’ prices have surged by 44 percent.
He attributed these rises to increased costs in salaries and source products.
“For a brand that proudly serves nearly 90 percent of the U.S. population every year, we feel a responsibility to make sure the real facts are available,” Erlinger stated.
According to the Bureau of Labor Statistics, consumer prices have risen 3.4 percent over the past year.
The upward cost trend has led to some consumers cutting back on restaurant visits, impacting the fast-food industry, including McDonald’s.
In its first-quarter earnings report, the company reported that same-store sales fell below expectations.
Meanwhile, the National Owners Association, an independent group of McDonald’s franchisees, is advocating that any potential discounted offerings be sustainable for operators.
“There simply is not enough profit to discount 30 percent for this model to be sustainable,” the board stated in a letter to its members. “It necessitates a financial contribution by McDonald’s.”
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