US McDonald's Announces Price Reduction on Some Menu Items
10% Price Increase Last Year... Hash Browns 4000 Won
"McDonald's Has Arrogantly Changed"
In the United States, where the price of a Big Mac set has risen significantly to $18 (24,000 KRW), causing widespread consumer complaints, McDonald's has acknowledged the issue of 'value for money' and announced plans to lower prices.
On the 7th (local time), CNN reported that Chris Kempczinski, CEO of McDonald's, recently announced a price reduction for some of McDonald's menu items that had seen repeated price increases. While McDonald's promised to offer food at reasonable prices to consumers, it did not specify the exact timing or scale of the price cuts.
This announcement came after CEO Kempczinski received a report that sales at U.S. stores in the fourth quarter of last year were weaker than expected. Kempczinski pointed out, "It has become cheaper to eat at home than at McDonald's," interpreting the sales decline as a result of consumers perceiving McDonald's as lacking in 'value for money.'
In fact, on social media platforms, posts complaining that McDonald's products have become too expensive continue to surface. On TikTok, a video pointed out that a single hash brown costs $3 (about 4,000 KRW), asking, "Who told you to charge this much? McDonald's has become so arrogant," which gained attention. Another video went viral showing that a Big Mac set at a McDonald's in Darien, Connecticut, known as an affluent area, cost $18 (about 23,000 KRW).
McDonald's plans to double its 'D123' strategy, which sets prices for some items between $1 and $3. CNN evaluated this by saying, "McDonald's management, which had boasted about being able to raise prices without hurting sales, has now surrendered to consumers."
Last year, the U.S. Consumer Price Index (CPI) rose by only 1.3% compared to the previous year, but dining-out prices surged by 5.2%. Riding the overall trend of rising dining prices, McDonald's had been pushing through price increases. As a result, the number of customers visiting McDonald's also declined.
CEO Kempczinski stated, "Demand from customers earning less than $45,000 (about 60 million KRW) annually decreased last quarter." This contrasts with McDonald's previous statement after raising menu prices by 10% last year, claiming that "price increases do not lead to sales declines." In October last year, Kempczinski told an analyst on a call, "We (McDonald's) are pushing price increases, but consumers are enduring well."
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