On December 27, the price of McDonald's main products increased. The reporter found through the McDonald's WeChat applet that the price of a variety of packages, hamburger items, and snacks increased by 0.5 yuan to 2 yuan, and the price of "1+1" remained unchanged at 13.9 yuan.
This price adjustment is also the second price adjustment of McDonald's this year since the "1+1" price increase of 1 yuan in January. Industry insiders believe that McDonald's and other Western-style fast food are facing many challenges in the catering market, and between limited price increases and cost increases, they need to retain profit margins through various ways including price increases.
McDonald's told reporters on December 27 that the price of 1+1 all-you-can-eat meals will not increase. McDonald's is committed to providing customers with value-for-money products and services, such as 13.9 yuan with 1+1 two-piece package, Flip Monday, 6% off breakfast card, O McGinn membership and other long-term preferential activities, every month there are new preferential activities to bring customers, such as the recent launch of the designated package "second half price", "New Year's first pot of gold" buy one get one free and other limited-time offers. Combined with the recent changes in operating costs, McDonald's China has adjusted the prices of some products from December 27, 2023, with an average increase of about 3%, and has clearly marked the prices on each ordering channel.
The price of McDonald's products has increased in many places
On December 25, some media reported that "McDonald's will raise the prices of its main products across the board on December 27, and nearly 90% of the main hamburger snack products will be listed by 0.5 yuan." The price of the Maika package increased by 1 yuan at the same time. ”
On the same day, the reporter called the McDonald's customer care hotline, and the staff responded that the product price of each McDonald's restaurant will be clearly marked on the ordering channel, and some McDonald's customer service staff said in response to the media, "Combined with the changes in operating costs, we regularly evaluate and adjust the price structure." ”
At 10:30 on December 27, the reporter found in the McDonald's mini program that compared with December 25, the prices of many packages and single products in the Beijing McDonald's Guangqu Road (Lecheng Center) store have been raised. For example, a variety of O-microphone membership packages have increased by 1 yuan.
On the evening of December 26th and the early morning of the 27th, the reporter adjusted the positioning to the McDonald's Wanda Plaza restaurant in Tongling, Anhui Province, and found that the Big Mac package, McSpicy Chicken Leg Burger Package, Plate Roast Chicken Burger Package, McXiang Chicken Package, Double Deep-sea Cod Burger Package, and Angus MAX Thick Beef Burger Series Package all increased by 0.5 yuan to 2 yuan, and French fries and crispy fries also increased by 0.5 yuan and 1 yuan compared with before. Many "O McKin" membership packages are 1 yuan more expensive than the original.
On the morning of December 27, many netizens said that the price of McDonald's breakfast had increased. "Breakfast has risen by 0.3 yuan" and "breakfast has become 7.2 yuan from 6.6 yuan". The reporter visited McDonald's Beijing Binhui North 1st Street Store and Xinhua East Street Store, and the clerk said that since the early hours of this morning, the prices of all McDonald's goods have basically risen, ranging from five cents to one yuan, and many consumers have also confirmed this. Ms. Yang, a consumer, said, "Because there is a McDonald's store near the company, it is more convenient to buy a package at McDonald's in the morning, and I can't remember whether McDonald's is the second or third price increase this year. ”
The reporter called the phone number of McDonald's Lecheng store in Beijing, and the store staff said, "It is true that the price of some products will change, but the specific change results need to be subject to the actual situation." The staff of McDonald's Dongdaqiao Restaurant said that "you can compare it yourself when you place an order" about whether the price of products will increase during the breakfast period.
At the beginning of this year, the price of some products was raised
In January this year, some netizens said on Weibo and other platforms that the price of the McDonald's package "1+1" was raised, from the original 12.9 yuan to 13.9 yuan. At that time, McDonald's China replied to reporters that due to the continued impact of various costs due to the epidemic, from January 4, 2023, the prices of some single products and packages for McDonald's dine-in and McNuggets will be adjusted. McDonald's China CEO Zhang Jiayin has publicly explained that compared with many McDonald's global markets, the cost of food inflation in the Chinese market is very well controlled, and inflation is digested through scale as much as possible, so the price increase is also small.
The reporter noticed that many netizens paid attention not only to McDonald's price increases, but also to associate "price increases" with "burgers becoming smaller". "It's not as big as the palm of my hand right now. "McDonald's burgers shrank more than my washed sweater. ”
Weibo once launched a poll on "Do you think the burger has become smaller", with 492,000 netizens participating, of which 333,000 think "much smaller than before", 73,000 think "it's a disguised price increase", and less than 9% of the voting netizens think "it's not getting smaller, it's because we've grown up".
According to public reports, in September 2022, McDonald's Holdings Japan said that due to rising costs and exchange rate fluctuations, McDonald's fast food restaurants in Japan will raise the price of products by about 60%. From September 30, the price of the signature Big Mac burger will increase from 390 yen to 410 yen, and the price of other items will increase by 10 to 30 yen. This is the second time that McDonald's Japan has raised prices since 2022, mainly due to the sudden depreciation of the yen, as well as a sharp spike in raw material prices, labor and logistics costs. At the beginning of this year, McDonald's Japan's official website said that due to the exchange rate, soaring raw material prices, and rising labor costs, McDonald's Japan will increase the price of the menu by 80%. In June this year, McDonald's Japan once again announced that it would raise the prices of packages and other products in 184 stores from July 19, involving 6% of about 3,000 stores in Japan. In addition, since January this year, McDonald's has raised the prices of all products in its main restaurants in Hong Kong by HK$1-2, with an average increase of about 3%, including fish fillet buns, McNuggets set meals and other products.
Expert voices
Digest the cost, and the restaurant company adjusts the price to ensure the profit margin
Wen Zhihong, partner of Hejun Consulting and head of chain operation, said in an interview with reporters that from the perspective of consumers, the brand he frequents will "hope that it will never increase in price, or even reduce the price", but from the perspective of operators, the objective reality is the rising cost of raw materials, rent and labor. To absorb these costs, price increases are really a "last resort".
According to industry analysts, McDonald's and other Western-style fast food are facing increasingly severe challenges in the domestic catering market, and between limited price increases and cost increases, it is inevitable to retain profit margins through various means.
Wen Zhihong believes that not only McDonald's, but also many Western-style fast food brands, and even the entire catering industry, in the face of rising costs in all aspects, must absorb these costs by continuously optimizing the supply chain and optimizing internal operation management and improving efficiency under the premise of unchanged quality. "If these practices are not enough to offset the cost increases, then companies will have to adopt price adjustment strategies to support reasonable profit margins. Wen Zhihong said, "In terms of the way of price increases, different companies may have different practices. Some companies may adjust prices several times a year, but each time the price adjustment is smaller, so that customers are psychologically more acceptable. Some enterprises may adjust the magnitude of a large amount all at once, and this price increase may be increased through the adjustment of product structure. ”
There is also an analysis mentioning that in the Angus series launched by McDonald's in 2019, the lowest single product price of the cheese Angus thick beef burger is 31 yuan, and the most expensive bacon double-layer Angus thick beef burger is priced at 45 yuan, and its gross profit margin is likely to increase. Secondly, McDonald's has also joined the coffee track with a higher gross profit margin with the Mc Café brand, and McDonald's has publicly stated that it plans to add 1,000 new McCafe stores in China in 2023.
Many consumers have also found that in addition to the high-end Angus series, the packaging of most of McDonald's burgers is simpler than before, and the burgers, including the grilled chicken leg burger, have been changed from the original carton packaging to single-layer wrappers. This approach also promotes environmental protection while relatively reducing the amount of paper and other expenses.
Editor: Chen Shijie
Source: Beijing News