McDonalds Becomes More Expensive
Published By : 21 Oct 2014 | Published By : QYRESEARCH
Americans these days prefer going to food joints like Chili’s, IHOP, and Denny’s rather than McDonalds. The fast food products at McDonalds have become quite expensive as compared to what they have been so far. In fact, the popularity of McDonalds was primarily due to the affordable rates of the food products being offered there. That, however doesn’t seem to be the case currently.
Earlier, there were many food items that were priced at $1, but presently most of the food items in the menu are more than $1. According to reports, McDonalds stated that the prices had risen by almost 3% since last year. McDonalds has always featured in the budget diners list, but it seems to be losing its appeal in this regard.
The high prices of fast food items of McDonalds can be owed to increasing costs of meat. Industry analysts have stated that the revenue earned by McDonalds has decreased by almost 2% and the earning have been a little more than $7 billion. The food safety scare in China has been another prominent factor that has led to lower earnings of McDonalds.
It has also been observed that McDonalds has not been offering enough and attractive deals and discounts to attract more customers. Also, the American population is extremely sensitive to prices changes, since a small change in price makes them opt for other available options in the market.
Restaurants and food outlets are facing high pressure in terms of increasing the prices of their food products due to expensive pork, beef, and cheese. Also, these outlets are being forced to consider increasing the minimum wages.
According to analysts, the only option for tackling the issue of rising costs of labor and commodities is raising the prices.