McDonald’s wants America to know: Reports of Big Mac inflation are overblown.
Joe Erlinger, president of McDonald’s USA, addressed these rumors in an open letter on the company’s website. “Recently, viral social posts and poorly sourced reports have suggested that McDonald’s has significantly raised prices beyond inflationary rates. This is inaccurate,” he wrote.
Erlinger explained that in 2019, the average price of a Big Mac in the U.S. was $4.39. Despite the pandemic and significant increases in supply chain costs, wages, and other inflationary pressures, the average price is now $5.29, a 21% increase, not 100%.
Erlinger wants customers to understand that high-priced McDonald’s burgers are not the norm. He acknowledges that there are instances of expensive Big Mac meals, but emphasizes that these are outliers.
“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 out of more than 13,700,” he said. “More concerning is when people believe this is typical or that Big Mac prices have doubled since 2019.”
People have been venting their frustrations about fast food prices online. This dissatisfaction has led to reduced spending, causing fast food sales to slow and customer traffic to decrease.
Erlinger is addressing this issue because McDonald’s pricey burgers have become a symbol of rising fast food prices. Being seen as overpriced could damage sales and the company’s reputation, especially for McDonald’s.
McDonald’s CEO Chris Kempczinski emphasized the importance of affordability during an April 30 analyst call. “It’s imperative that we continue to keep affordability at the forefront for our customers,” he said. “We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry.”
To attract customers, McDonald’s is considering adding a $5 value meal to the menu for a limited time. The Wall Street Journal reported that this promotion could start at the end of June.
The National Owner’s Association, a group for McDonald’s franchise operators, indicated that they are still deciding whether to adopt the promotion. The $5 meal would include chicken nuggets, fries, a soft drink, and either a McDouble or McChicken sandwich. A NOA representative declined to comment on the vote’s status.
Erlinger mentioned the potential national $5 value meal in his letter. “I fully expect the prices at your local McDonald’s to be a topic of conversation and focus in the coming months,” he said. “As it does, I hope you’ll see the programs we’re launching nationally and locally as meaningful to you.”