Inflation led to a 7 percent increase in the price of the Big Mac that made fans wonder if the famous burger should be renamed the Whopper.
Buying one of two McDonald’s pies is 7.2 percent more expensive than it was last year — the biggest jump since 1981, according to the National Restaurant Association.
On average, two patties of beef, special sauce, lettuce, and cheese on a sesame seed bun cost $6.05 nationwide—but prices vary widely by state.
Axios He also broke down the costs of burgers in 24 cities and found that sometimes the price of lunch outweighs the rise in wages.
Austin, Texas, where the minimum wage is $7.25, the Big Mac will take nearly half of that — $3.75. It’s the cheapest place to order a Big Mac in the US.
Seattle is the dearest place in the United States. Using a Big Mac there will cost you $6.39, but that’s about a third of the $17.27 minimum wage in the state.
This graph shows how the average price of a Big Mac rose 7.2 percent in a year, from $5.63 to $6.05
In Dallas, the news outlet, which gets the same hourly wage, found a burger cost $5.69.
Richmond introduces an unhappy meal plan at mcdonald’s.
Minimum hourly wage is $11, but lunch at the Golden Arches will cost you $4.95, almost half that.
New York City burgers will also leave minimum wage workers a third of their hourly salary. A Big Mac costs $4.89 on Broadway where workers earn at least $15 an hour.
McDonald’s in Seattle, like the restaurant pictured above, is home to the most expensive Big Macs in America at $6.39 each.
McDonald’s in Austin, Texas — like the restaurant pictured above — is home to the cheapest Big Mac in the country, charging customers there just $3.75 each.
The average Big Mac in the US costs $6.05, while the Seattle burger is the most expensive at $6.39.
The price of the Big Mac has risen 40 percent over the past 10 years.
McDonald’s Chief Financial Officer Kevin Uzanne blamed inflation for the cost hike.
In the company’s fourth-quarter earnings report, it said the price hike accommodated “4% commodity price increases or increases in food and paper prices, as well as labor inflation and a competitive environment.”
Labor and real estate are the two biggest factors in food prices at McDonald’s, according to the trade publication business restaurant.
Workers’ salaries can cost up to 30 percent of a restaurant’s revenue.
“An hourly rate will do,” Juan Martinez, a director at Profitability Consulting, told the publication. “It’s driven by market conditions and it’s driven by government conditions.”
Additionally, restaurants offering waiter service saw an 8 percent increase between March 2021 and March 2022, according to the report.
Midwestern states saw the largest rise — 8.4 percent — in list prices last year, closely followed by the South, at 7.5 percent.
Inflation rose 8.5 percent last month, well above the Fed’s 2 percent target, which pushed up the price of fuel and consumer goods, and is now out for lunch.
The producer price index, which tracks inflation before it hits the consumer, rose 11.2 percent in March, the same time last year, according to a Labor Department report last week.
The average hourly wage for restaurant employees increased 12.1 percent over the past year.
The producer price index – which tracks inflation before it hits consumers – jumped 1.4 percent in March from the previous month and 11.2 percent from a year ago.
It’s the biggest 12-month increase in wholesale prices since annual rates were first calculated in 2010, adding to the pressure on President Joe Biden.
Recent competition for restaurant workers has created an environment in which McDonald’s franchises are forced to pay a higher minimum wage.
The entire restaurant industry took a hit on the pandemic when indoor dining was banned.
But the fast food chain has rebounded again. The stock price of $256.58 is outperforming the S&P 500.
Budget-busting cost-of-living increases will not help President Joe Biden and the Democratic Party going into the midterm elections.
Other costs are also on the rise.
Apartment rents rose 0.5% in January, the biggest jump in 20 years. Electricity prices increased by 4.2 percent from 2021.