It appears that everything is getting more expensive. We are happy, however, that some fast-food chains make every effort to keep their prices competitive and accessible to the general public. That is why, while some were saddened by McDonald’s planned price rise on its catalog, many others supported it.
When you order a burger and fries at McDonald’s, be ready to witness an increase in prices. It appears that gas prices aren’t the only thing that’s increasing these days.
McDonald’s has informed us that they will be increasing their prices as well!
The Wall Street Journal reports that McDonald’s will increase prices by 6% next month. Expect further price hikes in the future. We already know it’ll happen sooner than planned, even if they haven’t announced when it’ll begin.
The Wall Street Journal reads, “McDonald’s said Wednesday that global same-store sales in the quarter ended Sept. 30 increased 10.2% compared with the same period before the pandemic. U.S. same-store sales were up 14.6% compared with the equivalent 2019 period. McDonald’s reported quarterly net income climbed 22% from the same quarter a year earlier, rising to $2.15 billion. Sales totaling $6.2 billion increased 14% from the previous year’s period.”
McDonald’s increased menu prices for a variety of reasons, but we know that it was due to a lack of cash flow.
McDonald’s has been spending a lot more than it used to for virtually everything they require just to keep their restaurants open. Despite paying its personnel higher wages during the crisis, McDonald’s is still having difficulties retaining employees due to the challenges brought on by COVID-19. Many of them quit because of COVID-19 and other factors, resulting in a service that isn’t as good as before not just because of a lack of workers but also owing to the fact that there are now more new hires.
Customers may be kept waiting longer, or even receive the wrong goods on their order.
Furthermore, the employees will also get a raise in pay. Furthermore, the company’s expenses to keep its doors open to the general public are no longer beneficial.
McDonald’s restaurants in the United States have been closed due to a high level of Covid-19, which includes the burger chain. Their restaurants that are open aren’t using their dine-in areas yet. That’s more than 3,000 McDonald’s locations.
Many fast food chains are having trouble maintaining profit margins comparable to their competitors. Because of this, companies with limited-service restaurants need to raise prices even when they simply serve drive-thrus and deliveries. This has a significant influence on the company since many clients are unhappy with not being able to dine inside.
Fortunately, unlike other businesses, McDonald’s are not on the verge of bankruptcy or anything similar. In fact, despite the problems they’re having, the firm is actually doing quite well.
We already knew that the one with McDonald’s wouldn’t surprise us anymore, given all of the price hikes that have recently taken place across the world. During the epidemic, we saw restaurants failing and there’s no doubt that even beloved fast-food chain McDonald’s was harmed.
