Say hello to the $18 Big Mac Combo Meal, As Fast Food Prices Soar
Once a go-to option for a quick and affordable meal, fast food prices across the country have been skyrocketing, leaving many customers feeling the pinch. McDonald's has seen a decline in low-income customers ordering from their menu, according to CEO Chris Kempinski.
The cost of a Big Mac combo, including fries and a drink, has reached nearly $18 at certain locations, while hash browns alone are priced at $6.
In Denver, Colorado, the price of a combo meal has reached $13 due to increased food costs and hourly wage increases. These price hikes have driven away customers who are frustrated with the rising inflation and additional costs. In fact, global same-store sales in the latest quarter fell short of expectations, with growth primarily driven by menu price increases, as reported by the company.
In Denver, Colorado, the price of a combo meal has reached $13 due to increased food costs and hourly wage increases
Recently, a McDonald's outlet in Connecticut faced criticism online for its "outrageous pricing," with a customer being charged $7.29 for an Egg McMuffin and $5.69 for a side of hash browns. Another franchise in Darien, Conn., faced backlash for charging $17.59 for a Big Mac combo meal and $19 for a Quarter Pounder with Cheese and Bacon meal.
Franchisees of McDonald's are feeling the financial squeeze as costs for insurance, equipment, and labor continue to rise. Experts warn that fast food prices are expected to climb even higher as minimum wage hikes are implemented across the country.
Colorado, for example, saw its minimum wage rise to $14.42 per hour in 2024, while California is set to introduce a $20-an-hour minimum wage for fast food workers in April.
While fast-food chains like McDonald's and Chipotle have announced menu price increases in response to these cost pressures, analysts highlight that there is a limit to how much consumers can bear. Menu price hikes of 1% to 3% were common before the pandemic, but last year, McDonald's prices surpassed the industrywide average increase of 7.6%, according to restaurant research firm Technomic.
Although rising commodity costs have been cited as the reason behind these price hikes, prices for eggs, dairy, vegetables, and grains have actually been decreasing since August, according to Technomic. Some experts argue that the industry is becoming addicted to raising prices and that there is a risk of going too far.
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In response to the concerns, McDonald's CEO Kempinski has stated that the company aims to slow down price increases to a "low single-digit" pace, stepping back from the 10% hike implemented in 2023. He emphasized the need to focus on affordability and optimizing prices while limiting customer resistance, suggesting that the company will explore smarter pricing methodologies.
As fast food prices continue to rise, it remains to be seen how customers and the industry will adapt to these new challenges.