As the cost of living crisis hits Britons harder, McDonald’s today increased the price of its cheeseburger for the first time in 14 years, from 99p to £1.19, and will also raise the prices of breakfasts, extra value meals, chicken nuggets, and coffee.
According to the fast food juggernaut, it was no longer possible to shield customers from the skyrocketing costs brought on by rising inflation that affected the price of produce, energy, fuel, and wages.
It released a lower earnings report yesterday as a result of its withdrawal from Russia and its closed stores in China.
The latest indication of mounting consumer pressure, the company informed UK customers that it will increase the price of a cheeseburger from 99p to £1.19 as of today.
This is the first increase since roughly 2008. Its renowned cheeseburger is now more expensive than a pound for the first time in history.
McDonald’s announced today that it is raising the price of “menu items touched most by inflation” as shops reported that food inflation is running at its highest rate since at least 2005 and Unilever, the manufacturer of 400 staples including Marmite, also increased prices.
This entails price increases ranging from 10 to 20 pence for the consistently well-liked breakfast items, extra value meals, McNugget sharing boxes, big coffees, and the McFlurry ice cream.
Meals’ “go large” option has increased by 20p. This summer should see the introduction of these rises.
However, the fast food juggernaut announced the addition of two new burgers, halloumi fries, and the return of McDonald’s Monopoly to their menu in an effort to quell some of the ire.
Although some products won’t be impacted, McDonald’s emphasised that others will differ across the UK as some prices can be changed by franchisees.
But on the savings menu, several franchisees typically charge the same price, giving rise to a number of mainstays.
The increases are required, according to Alistair Macrow, chief executive officer of McDonald’s UK & Ireland, to help the company get through “incredibly difficult times.”
In an email to customers, he stated, “Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation.”
“In situations like this, we understand the value of offering excellent service.
Since we first opened in the UK in 1974, we have pledged to provide excellent food at reasonable pricing, and we will continue to do so.
But given the realities of today, we must, like many others, make some difficult decisions regarding our prices.
McDonald’s informed guests that it has “delayed and minimised these changes for as long as we could” and acknowledged that price hikes “are not good news.”
It comes a week after the ONS revealed that last month’s inflation rate reached a 40-year high of 9.4%.
The hotel industry is the latest to issue a warning on rapid price hikes.
Before the year is out, it will increase to 11%, according to economists.
The grocery behemoth that manufactures some of the most recognisable brands found on supermarket shelves, including Magnum, Dove, and Pot Noodle, has raised prices by 11.2% in the past year.
Unilever, which is in charge of 400 brands that are available in markets all over the world, claimed that it was compelled to pass on increases in its own costs, including raw materials, which total roughly £4 billion this year.
Further rises, according to company executives, are on the horizon.
In light of increased costs for commodities, materials, energy, labour, and gasoline, industry analysts predicted that the era of significant price increases would continue.
We’re going to be locked in this climate for a long time, according to management consultant Andy Searle of Alix Partners.
Retailers said that price increases in their stores were occurring at a rate that was the greatest since at least 2005.
Fresh foods, such as fruit, vegetables, meat, and dairy, saw the most price rises, rising by an average of 8%.
Reckitt, the manufacturer of Dettol, has stated that despite quickly increasing costs for consumers over the past year, it has continued to sell more items.
The company reported on Wednesday that its pricing rose 9.7% in the second quarter of this year compared to the same period last year.
Reckitt said that despite a significant hit to wallets everywhere, consumers have not been exercising their right to free speech.
It sold 2.2 percent more goods overall, which was an increase.
The company reported an 11.9 percent increase in like-for-like revenue, reaching £3.5 billion, thanks to higher prices and more sales.
The cost of Amazon’s Prime delivery and streaming service will increase from £7.99 to £8.99 per month.
In the UK, annual membership will rise from £79 to £95.
For new subscribers, the price increases will go into effect on September 15 or the date that existing customers renew their subscriptions.
The IT behemoth attributed the price increases to “rising inflation and operating costs.”
Amazon’s Prime service provides live sports coverage, unlimited free merchandise delivery, and TV and movie streaming.