Mcdonald’s Plans to Raise Prices: Higher Commodity Costs to Blame

Mcdonald’s plans to raise prices as a way to offset their commodity cost, so they say. Mcdonald’s plans to raise prices aren’t getting the green light from many consumers though. They have turned from saying, “I’m Lovin’ It!” to “What the heck is this! I’m hatin’ it!”

Mcdonald’s plans are to raise prices up to 3% in 2011 on several menu items. The fast food chain states that several key ingredients such as “meat and wheat,” have had their prices hiked so the franchise has no choice but to pass on the price difference to its own customers rather than they, themselves, eat it up. The prices are expected to be raised in Mcdonald’s stores throughout Europe and the U.S.

Mcdonald’s CFO Peter Bensen said, “We’ll actively look at the opportunities and with some optimism, the economy will get stronger next year and we’ll get price increases.”

Mcdonald’s has gone for over a year without raising their prices in the hopes of keeping thrifty customers during a poor economy and it worked. Mcdonald’s sales went up whilst other businesses went bankrupt.

Several customers are opposed to the idea of more price hikes though! Some people would even say, “What the heck McDonald’s? Didn’t you guys just take the double cheeseburger off the Dollar Menu and replace it with a McDouble, which is really just a double cheeseburger minus a slice of cheese!” and those people would be right!

Anyway, what are your thoughts on Mcdonald’s plan to raise prices in 2011?

© Evalynn Saeyang - October 2010