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McDonald’s wants to set the record straight on their prices and inflation. The chain has released an open letter to customers to address “rumors” in regards to price concerns and recent viral posts that posit McDonald’s prices have risen well above the inflation rate.
In an attempt to set the facts straight, the letter signed by, McDonald’s President Joe Erlinger discusses the $18 Big Mac and even has a facts vs myths section where they debunk common “misconceptions” appearing online and on social media. This letter comes as the chain sees reduced sales and traffic for the first time in years. The new, fleeting $5 Value Deal was one tactic to try and stop a bleeding wound…and now the letter is another attempt to stop the blood flow.
Erlinger specifically went after the Big Mac controversy, stating that the national average has only risen by 21% since 2019, and not the 100% that’s being bandied about. The letter doesn’t state what the exact calculation methods were used to arrive at the 21% figure. And Erlinger didn’t acknowledge more glaring issues like the current $4 or $5 hash brown which was $1 just a few years ago.
Letter Highlights
I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold — even if it was at one location in the U.S. out of more than 13,700. More worrying, though, is when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019.
The average price of a Big Mac in the U.S. was $4.39 in 2019. Despite a global pandemic and historic rises in supply chain costs, wages and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%).
Inflationary pressures have affected all sectors of the economy, including ours. Our franchisees (who own and operate more than 95% of all restaurants in the U.S.) set menu prices for their restaurants, which account for the increased costs of running their businesses. In doing so, they work hard to minimize the impact of price increases on our fans. This includes the everyday prices on our restaurant menu boards to special limited-time offers.
That’s why prices for many of our menu items have risen less than the rate of inflation – and remain well within the range of other quick service restaurants. It’s also why more than 90% of U.S. franchisees are offering meal bundles for $4 or less.
I fully expect the prices at your local McDonald’s to be an area of conversation and focus in the coming months. As it does, I hope you’ll see the programs we’re launching nationally and locally as meaningful to you. At the same time, I hope it’s helpful to see some of the common myths that I’ve encountered, and the facts that go along with them.“
They also posted a Myths vs Facts module after the letter going after common sentiments thought about the brand.
After the letter went live, the comments poured in as it was picked apart on social media and chastised for posting misleading numbers and Jedi handwaving the facts:
“Correcting the record by acknowledging a 40% increase in prices the last five years is not the flex he thinks it is. That number far outpaces inflation of food, consumer goods, and labor over the same time period.I also can’t tell if they’re calculating their prices by averaging all US menus (equally weighted) or averaging all burgers sold when they calculate these prices. It wouldn’t make sense to count a $4.59 Big Mac at a slow restaurant the same as a $5.99 Big Mac at a busy restaurant that serves 10x as many per day.”
“Lol they’re claiming the Big Mac has only gone up 90 cents in 5 years. I used to order the Daily Double a lot back when it was like $2.19. Now it’s about $4.”
“AND don’t even acknowledge that 21% is still an absurd price raise in 5 years, way above people’s cost of living raises lol.”
“Show me the price comparison of a Hash Brown or McDouble from 2019 to 2024, John McDonald. I’m guessing the 100%+ price increase there wouldn’t look too flattering and fit your narrative that McDonald’s menu prices are actually under rate of inflation.“
So basically McDonald’s is absolutely doing damage control and trying to fix the public perception of them being greedy while outpacing inflation with their prices.
What do you think about McDonald’s letter? Do you think the chain has about as much hope as the Titanic sinking in open water with not enough lifeboats, surrounded by freezing water? Or is this just a hiccup in their lengthy career as the leading fast food burger giant?
