Posted on 02/08/2024 10:47:48 AM PST by Diana in Wisconsin
The CEO of McDonald's admitted Monday that the sales for the fast food giant have dipped amid increased menu prices that have not gone unnoticed by customers.
The Chicago-based chain has taken heavy criticism over its Big Mac combo that is priced at nearly $18, among other menu hikes, and has promised to focus on affordability, the New York Post reported.
"I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability," McDonald’s CEO Chris Kempczinski said on an earnings call with analysts.
Some global same-store sales grew by 3.4%, short of the 4.7% that was expected by Wall Street. In addition, some low-income customers have stopped patronizing the chain as inflation has caused prices to jump, Kempczinski said.
"Eating at home has become more affordable," Kempczinski said. "The battleground is certainly with that low-income consumer."
Prices at McDonald's are still expected to increase at a slower pace, restaurant analyst Mark Kalinowski told The Post.
Last week, a McDonald’s location in Connecticut was criticized after a customer was charged $7.29 for an Egg McMuffin and nearly $5.69 for a side of hash browns. The franchise in Darien, Connecticut was called out for charging $17.59 for a Big Mac combo.
Fast food prices in general could climb even higher as minimum wage hikes go into effect across the country. In California, many fast food workers will earn $20 per hour beginning April 1.
McDonald's and Chipotle have signaled that prices will have to increase in response to the high labor costs.
(Excerpt) Read more at foxla.com ...
Maybe they’ll offer a Small Mac?
so $1.50 cheeseburgers back on the menu again?
Discounts for minorities, price hike for Caucasians. Problem solved.
mini mac meals for $15 lol
Great.
So I look forward to automated everything...with one or two warm bodies overseeing the automated operation.
Because $25 per hour burger flippers just aint going to allow you to cut that much.
Only accomplished by downsizing product and/or going with lower grade food ingredients (if that’s possible at a McDonald’s).
Massive automation is the only solution.
...but don’t forget about TASTE!
On time
On budget
Good quality
So, if McDonald's is going to focus on "budget", will the fast food be slower, or lower quality?
So I look forward to automated everything...“
Thanks to the rats it’s the only way
I had posted downsizing product and/or lower quality food, but automation and a significant cut in employees would probably get there too.
McDonald’s is your kind of place
They feed you rattlesnakes
French Fries between your toes
Hamburgers up your nose
The last time I went in there
They fried my underwear
McDonald’s is your kind of place
a big mac meal is worth $7-8, no more. They need to charge what it is worth.
People started eating at McDonald’s because it was a good deal for the amount of food you got for the money and now it isn’t. If McDonald’s keeps their prices high, they are going to die.
Maybe “Demolition Man” had it right; the only restaurant that survives will be Taco Bell.
In the 90’s, the one by me had $.59 cheeseburgers on Wednesdays.
Fond memories. I was ripped even though I ate cheeseburgers, Nip-Chee crackers, and a 64oz Wawa lemonade everyday.
If their costs for overhead, product, labor, taxes, regulation compliance, etc, makes them lose money on each $7-8 meal, they will have to cut costs somewhere, most likely in the quality/quantity of the product.
He doesn’t even know how to use the Three Seashells.
Maybe “Demolition Man” had it right; the only restaurant that survives will be Taco Bell.
Could be, but definitely not because it’s cheap these days!
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