McDonald’s finds itself caught between a consumer rock and an economic hard place, these days. In the midst of high Fast Food menu prices and fan discontent, McD’s is struggling to justify its ‘better value’ claim and fighting claims of price gouging…
The Classic Big Mac Meal: Now considered a luxury by 3 out of 4 Americans…
Remember when the uproar started? Back even before COVID, folks were complaining about shrinking fast food menu items and misleading claims. Some customers went as far as to sue major chains – notably Burger King – claiming they ‘overstated’ their products in their advertising. Then came the rocket-like rise in food prices. And many jurisdictions were pressured to increase Quick Service Resto sector wages. Fast Food chains were caught in an economic vice.
The result
McDonald’s, the highest-profile Fast Food brand in the world, usually makes the first move into any new territory, with service or menu innovations. As a result of its visibility, it’s always found itself fronting major issues that arise in its industry.
Accordingly, it was McD’s that took the brunt of criticism across the Fast Food sector over rising prices and shrinking products. And so it was that McDonald’s led the way, promising its fans ‘better value’ and ‘bigger burgers’.
But the legend of the $18 Big Mac one customer found in Connecticut still looms over the brand like a gargoyle on the parapets. Less a burger, more an albatross around the chain’s McNeck.
The McEmpire strikes back
“I still remember the excitement I felt as a kid when my parents turned into a McDonald’s,” McDonald’s President Joe Erlinger recalls. “I think back to that almost every day in my job running McDonald’s USA (and to my mom’s love of McNuggets). While I didn’t realize it then, it wasn’t just the great burgers and fries that made McDonald’s a destination for the Erlingers — it was knowing my parents could count on their local McDonald’s for a convenient, affordable meal for the whole family.”
And Erlinger says McD’s realizes, “That’s just as important today. Americans across the country are making tough calls about where to spend their hard-earned money.”
Recent events
The stage was set by the recent high-profile announcement that McD’s was going to release its Holy Grail-like Bigger Burger later this year, after extensive market testing. (It should be noted that they haven’t shown us one yet, or even offered a detailed description.)
But McD’s has identified a need to speak out against continuing claims that the chain is gouging consumers. Erlinger once again takes the podium: “Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates. This is inaccurate. […] And for a brand that proudly serves nearly 90 percent of the U.S. population every year, we feel a responsibility to make sure the real facts are available.”
In addition, “More than 90 percent of U.S. franchisees are offering meal bundles for $4 or less.”
Independent evidence
The continuing controversy over Fast Food prices may have been the trigger for a recent LearningTree survey that mapped Big Mac prices across the US. The most expensive one was still in New England, in Lee, Maine. But the price was a more reasonable $8.05. Although… Some McD’s fans say that’s still too much. By contrast – shocking to some – the cheapest Big Mac in America was found in Stigler, Oklahoma, at just $3.49.
But that unbiased, third-party evidence supports Erlinger’s contention that McDonald’s is not price gouging.
My take
There’s still a lot of grassroots fallout over high food prices in general. And Fast Food prices in particular. But it appears that food prices are turning around, and the Fast Food industry has realized it has to make big changes to maintain its fan base.
Most tellingly, the LearningTree survey revealed perhaps the most shocking Fast Food development yet: More than 75 percent of Americans now consider Fast Food a luxury!
~ Maggie J.