McDonald’s Addresses Misconceptions on Menu Price Increases

McDonald’s USA President Joe Erlinger recently clarified misconceptions about the company’s pricing, responding to viral claims that their menu prices have surged disproportionately.

In an open letter posted on McDonald’s website on Wednesday, Erlinger countered reports suggesting that the chain’s prices have dramatically increased. He emphasized, “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%.”

Erlinger addressed the exaggerated claims, noting, “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.” He clarified that such instances are outliers and not representative of the overall pricing trend.

Customer dissatisfaction with perceived high prices has led to decreased spending and reduced visits, impacting fast food sales. Erlinger’s letter aims to reassure customers about McDonald’s commitment to affordability. “We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry,” stated McDonald’s CEO Chris Kempczinski during an analyst call on April 30.

To attract budget-conscious diners, McDonald’s is considering introducing a $5 value meal. This promotion, expected to roll out at the end of June, would include chicken nuggets, fries, a soft drink, and either a McDouble or McChicken sandwich for $5. The National Owner’s Association (NOA), representing McDonald’s franchise operators, is still debating the adoption of this promotion.

Erlinger hinted at this potential offering, stating, “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.”