McDonald’s has written an unprecedented open letter to customers stating that its price increases are not as bad as some media reports.
But in the letter, President Joe Erlinger says prices have “only” risen 40 percent at his 14,000 U.S. restaurants since before the pandemic.
The letter was aimed at calming the furor over the rising cost of fast food, which is now so high that four in five Americans consider it a luxury.
‘Recently, we have seen viral social posts and poorly substantiated reports that McDonald’s has increased prices significantly beyond inflationary rates. “This is inaccurate,” he stated. wrote.
But in the same letter he includes the statistic: “The average price of McDonald’s menu items has increased (about) 40 percent over the last five years.”
At that time, the overall inflation rate in the United States is 22 percent, according to the U.S. Bureau of Labor Statistics, and even for food the rate is slightly higher, at 26 percent.
McDonald’s President Joe Erlinger admits in an open letter that prices across the menu have risen 40 percent in five years.
A Big Mac meal can cost up to $17.59, which after taxes is about $20.
Expert Neil Saunders, of GlobalData, told DailyMail.com: ‘The letter is an attempt to reassure customers that McDonald’s is not profiting or acting unfairly.
‘The problem is that, while people may buy that, the reality is that the price of the dishes on the menu has become much more expensive.
“It may not be McDonald’s fault, but it’s a problem for a meal that’s supposed to be a budget-friendly indulgence.”
McDonald’s made a staggering $14.5 billion in profit last year.
In the “myths versus facts” section of the letter, Erlinger says it is a myth that “McDonald’s has raised prices at a rate that is nearly double the rate of inflation.”
To support this, he ignores the official inflation rate. Instead, he points out how much more McDonald’s is paying for things.
It says: ‘Average input costs (wages, food and paper) have increased by around 40 per cent in the last five years. The average price of McDonald’s menu items has increased about 40 percent over the past five years.
He also admitted that the average price of a 10-piece McNuggets Meal now typically costs 28 percent more, from $7.19 to $9.19.
Meanwhile, he said a Big Mac was up 21 percent, a quarter pounder with cheese was up 20 percent and an Egg McMuffin was up 23 percent.
Erlinger admits that $18 Big Mac meals worry him, but says they are the exception rather than the rule.
‘I can tell you that it frustrates and worries me, and many of our franchisees, when I find out that an $18 Big Mac meal is being sold, even if it was at one location in the US among more than 13,700.;
But then he criticizes customers on social media when talking about it.
He added: “The most worrying thing, however, is when people believe this is the rule rather than the exception, or when people start suggesting that Big Mac prices have increased by 100% since 2019.”
His letter comes as a new report released Monday showed how much the price of some popular combo meals has skyrocketed.
Official figures show annual inflation in the fast food sector is 4.8 percent, but that only tells part of the story after years of increases, according to a report from USA Today sample.
Prices for a typical combo meal at the five biggest burger chains (McDonald’s, Burger King, Wendy’s, Carls Jr and Five Guys) have risen as much as 120 percent in a decade.
This is more than three times the official inflation rate: The cost of goods has increased only 31 percent since 2014, according to the U.S. Bureau of Labor Statistics.
There is no doubt that Americans have been voting with their wallets.
In the first three months of 2024, visitors to fast food chains fell 3.5 percent from a year earlier, according to data from Revenue Management Solutions.
What McDonald’s says about price increases
How meal prices at the five biggest fast-food restaurants have risen in a decade
In real terms, that means millions of Americans a week are skipping the drive-thru, and the chains themselves admit that higher prices have put off burger fans.
At Carl’s Jr, a Famous Star combo has jumped from $5.29 to $11.68, more than doubling since 2014.
McDonald’s plans a $5 meal package starting June 25. Customers will receive a total of four items: a McDouble or McChicken sandwich, fries, a small soft drink and four McNuggets.
Burger King has a similar $5 deal, while Wendy’s has launched a $3 breakfast, as the fast food price war appears to be heating up.
