#头条创作挑战赛#
This winter, even more chilling than the temperature is the news of McDonald's price increases.
From December 27, McDonald's main products began to increase prices across the board. Nearly 90% of the main hamburger snack products are listed for a price increase of 0.5 yuan, and only members can enjoy a discount on the basis of the price increase.
Netizens who are interested in comparison found that the Big Mac Package, McSpicy Chicken Leg Burger Package, Plate Roast Chicken Leg Burger Package, and Double Deep-Sea Cod Burger 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.
However, the good news is that the 1+1 free match, known as the "poor ghost package", has not increased in price, which can give you a little comfort to the workers.
This is not the first time that McDonald's has raised prices.
In fact, in the past three years, McDonald's China has made a price increase adjustment at the end of December.
Taking the "Poor Ghost Package" 1+1 as an example, the price was 12 yuan when it was first listed, and the price was quietly increased to 12.9 yuan at the end of December 2021. At the end of 2022, the price increased again, mentioning the current 13.9 yuan.
Although the absolute amount is not large, it has increased by about 15% in terms of growth, and the average price adjustment of this product price adjustment is also about 3%.
Of course, the rising prices are not just for the Chinese market.
McDonald's is very clear, everyone here should pay more.
Previously, South Korea's McDonald's raised the price of 30 dishes by 100 to 300 won, and in July 22, McDonald's raised the price of cheeseburgers sold in the UK for the first time in 14 years;
In September, McDonald's nearly doubled the price of some of its popular products from Australia, and at the end of September of the same year, Japan's McDonald's said it would raise the price of its products by about 60% due to rising costs and exchange rate fluctuations.
Even in the United States, McDonald's raised store prices by 8% year-on-year in the first quarter of '23 and canceled some discounts.
Although the price has risen, the volume has also shrunk.
Perhaps the wind of reducing costs and increasing efficiency has finally arrived at McDonald's. Sharp-eyed netizens have recently begun to discover that even if the price increases, why are things shrinking more and more?
Although no one will insist on taking pictures every time they eat McDonald's in a few years to preserve the evidence, in the face of the fact that there is no palm-sized burger yet, after ruling out the possibility of their rapid growth in a few years, it is difficult not to suspect that it has shrunk significantly.
McDonald's has always been the lowest unit price among the Western-style burgers and fast food royal three, and the price is significantly lower than that of KFC and Burger King.
While this strategy has brought it good word-of-mouth and foot traffic, it has also reduced revenue.
In 2022, although McDonald's revenue increased by about 6% year-on-year, net profit fell by 13% year-on-year to $6.177 billion. In 2023, the third quarter of this year's earnings report shows that although McDonald's China's same-store sales increased by 10.5%, the growth rate is slightly lower than the same period in 2022.
McDonald's was first piloted in the United States to increase profits by raising prices.
In 1Q23, McDonald's raised pricing for the U.S. market. The result of this strategy was a 4.5% increase in revenue last year. Even after the overall price increase, the total revenue increased instead of decreasing, reaching the highest point in 16 years.
It is not surprising that McDonald's, which has tasted the sweetness, intends to eat fresh all over the world, and it is not surprising that various markets take turns to welcome the price increase.
However, in today's environment of price war in the catering industry, McDonald's price increase is somewhat contrarian.
In the past two years, the most popular keyword in the catering field is actually "cost performance".
Whether it is the crazy expansion of Mixue Bingcheng, or the ten-yuan coffee price war between Luckin and Cudi, or the group purchase package discounts visible on various platforms, all of them are announcing the arrival of the era of involution of catering cost performance.
KFC and Pizza Hut, both Western-style fast food, saw their average unit prices drop by 5% and 9% year-on-year respectively last year, in sharp contrast to McDonald's's price increases.
The overall unit price of Haidilao dropped to 102.9 yuan from 105 yuan in the same period last year, and the unit price of Taier sauerkraut fish also dropped to 75 yuan from 78 yuan in the same period last year. Starbucks' financial results for the fourth quarter and full year of fiscal 2023 ended October 1, 2023 showed that its average average order value decreased by 3% year-on-year.
At the same time, the "ultra-low-price group buying" in the catering industry is also in full swing. For example, Xiaolongkan's "First Hot Pot Meal for 4 People in Autumn" was originally priced at 470 yuan, and the Douyin group purchase price was only 177 yuan with a 3.8% discount; KFC's "Golden SPA Chicken Chop Burger/Zizi YES Roast Chicken Leg Burger OK Three-Piece Set" Douyin group purchase price dropped by 18.6 yuan, and the original price of the steakhouse was 268 yuan, and the Meituan group purchase price was only 128 yuan with a 4.8% discount.
Consumers are also becoming more price-sensitive, especially those attracted by price reduction strategies.
For example, in November last year, Haidilao canceled the distinction between half a cent and a whole portion in the order, and only offered half a cent, and raised the price. Taking hairy tripe as an example, the original price of half a cent was 40 yuan, but after the change, the price increased to 58 yuan.
This behavior caused a large public reaction at the time, and although Haidilao officials made some explanations, consumers still did not pay, which eventually led to Haidilao being forced to withdraw the change.
This is a typical illustration of the large group of price-sensitive consumers today, and the discount strategy attracts this type of consumer in particular, which makes merchants have to be extremely cautious when making price increase strategies.
However, for McDonald's, it seems that there is still plenty of room for manoeuvre, after all, a lower unit price is the confidence to increase prices.
As long as the "poor ghost package" is still there, there will be no shortage of believers in Maimen.
Everything goes up, but wages don't.
Even if you eat a hamburger, you have to reduce costs and increase efficiency.
It's really too difficult to work as a worker these days. It's too hard to save some money.
Although it is nothing more than the four words of open source and cost reduction, it is easier said than done. The knowledge of saving money has long been a prominent science, and all kinds of "xx can't afford it, but xx is more cost-effective" flat literature can be seen everywhere on the Internet, and everyone has studied it thoroughly.