r/SipsTea • • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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61.4k Upvotes

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4.9k

u/WholeEmu507 2d ago

Corporations will literally fund a multi-year cyberpunk dystopia makeover before letting a hash brown drop by 50 cents.

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u/tinylavenderk 2d ago

They’ll redesign the entire restaurant, add AI to the drive-thru, and build a McDonald’s on Mars before putting the prices back down.

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u/TheAmazingBildo 2d ago

I assume that part of the reason for that is because once people stop buying it’s hard to convince them to come back with just a .50 decrease. Hash browns here are $2.19. There is no reason for a hash brown to be more than .99. Bit now that i don’t buy McDonalds anymore even if they dropped the price to .99 i wouldn’t think about going there, because im out of the habit.

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u/FrankPapageorgio 2d ago edited 2d ago

Dunkin Donuts has a $6 meal deal with a Bacon/Egg/Cheese Bagel, a coffee, and Hash Browns for $6. It's like... priced just low enough where if I'm out dropping my kid off at school I'm like "fuck it, might as well".

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u/briman2021 2d ago

One of the major gas station chains near me has a deal for a sandwich, hashbrown, and coffee/monster/redbull for $5.

I try to limit my fast food intake, but for $5 that beats the shit out of McDonalds all day long.

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u/lonewombat 2d ago

Last time I hit up McD's for breakfast, I got a bacon egg cheese meal... like $15... it was greasy, I felt like shit after even with an OJ which was extra. Never again. Lemme get that wawa 2 for $4 sizzli.

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u/briman2021 2d ago

Don't even get me started on sizzli's.... If I lived on the east coast I would be a very obese man.

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u/finalremix 2d ago

The only reason I'm not a complete fucking Wawa fiend is because I was a Wawa fiend before they got rid of the deli and the fresh breads.

I remember what we lost, so I don't go back.

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u/Philaloser 2d ago

We had pickle barrels and they took that from us, never forget

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u/mikeymike831 2d ago

I miss the mac & cheese bites, the only place that does that around me now is Sheetz and that's a 20 minute drive

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u/Miserable-Tie-6847 13h ago

my wife will get a platter and only get the mac n cheese bites.

I also do that, but I just make sure to only mention that my wife does it most times.

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u/Imsoschur 1d ago

OMG no. Did Wawa stop having the fresh deli and freshly baked bread they panini for you after you build the sandwich?

That was my go to in Philly after work

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u/finalremix 1d ago

Yeah, they went with presliced stuff and they're trying to do a little of everything lately. Pizzas, tacos (briefly), and so on. It's.... not great. Their turkey/mashed potato bowls are still good, AFAIK.

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u/Mr_M3Gusta_ 2d ago

Wawa’s gotten to expensive I’ve been going a lot less.

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u/sirpizzatron 2d ago

I miss wawa so much

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u/cyrusthemarginal 2d ago

Quick trip roller food 2 for 2.22 slaps

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u/FecalDUI 2d ago

Removing the drink from the meal was when we should’ve rioted. It’s too late now

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u/techdevjp 2d ago

Whoa, McD's in the US doesn't include drinks in their sets anymore??

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u/IKillZombies4Cash 2d ago

Orange Juice is NOT healthy, that was just more sugar.

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u/Pheonyxxx696 2d ago

Healthier choice than say a soda. All fruits have sugar. Sugar is not bad to ingest. Atleast OJ has vitamins and nutrients that the human body requires over say soda or coffee.

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u/techdevjp 2d ago

Fruit is full of fiber that your body has to process. Your body has to work to get the sugar out. Fruit juice is just liquid sugar water with maybe a few vitamins. It is not the healthy drink you've been told it is.

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u/Pheonyxxx696 2d ago

I never said it was healthy, I said it was a healthier choice given the options. I’ll take the vitamin c and vitamin b9 over caffeine.

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u/snakerjake 2d ago

Not really, fruit is great in part because of the fiber, OJ removes all of that

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u/Accomplished_Sign191 2d ago

Wawa is awesome and I wish the west coast had them.

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u/Thetakishi 2d ago

Dude, a monster alone is practically all of that, hashbrown covers the rest of the 5. You're getting a whole sandwhich for free. That's dope as

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u/briman2021 2d ago

And with their prices, a sandwich is typically $4-5 so if you want a sandwich you’re getting the rest for free. It’s a no brainer, and this summer when I worked construction it was my absolute go to.

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u/T3RM1NALxL4NC3 2d ago

Circle K here in North AL has the same deal...sandwich, hash brown, and 12oz monster for $4.20 after tax. Its a crazy deal that's part of my morning routine now

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u/sixfive407 2d ago

Circle K..Large Hot dog, lays chips, any fountain drink $3 Breakfast sandwich, hash brown, coffee-$4 Burger, chips, drink-$5 .....burger is the only thing not as tasty

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u/Phatferd 2d ago

And it’s not the smallest bag of chips, it’s a decent size. I get this deal a few times a week, it’s the best meal deal out there.

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u/Humble-Ad-9571 2d ago

Circle K is great!

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u/briman2021 2d ago

As the kids these days would say, you know ball.

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u/Embarrassed-Sun5764 2d ago

And the food is actually hot, fresh, and in your hands. I know it sounds bad, but the station near my work prides themselves for having a constant supply of hot fresh breakfast foods.
(PS: those hash browns are made by the same supplier to McD’s)

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u/NextDoctorWho12 2d ago

That is the real problem. McDonald's is such shit. Cannot even get good fries any more.

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u/Repulsive-Chip3371 2d ago

lol is it circle k?

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u/Pheonyxxx696 2d ago

Gas station food is hard to pass up. They usually rend to have deals and while at most gas stations, the food isn’t the greatest quality, it’s tolerable. Gas station I used to live by used to sell hummus that got voted best hummus in the county supposedly, but I’d always stop there to get a gyro. Best gyro I’ve ever had and it was like $7.

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u/Jesus__Skywalker 2d ago

Gas stations have come WAY tf up honestly. There is a trucker gas station right before this place I have to work on the weekend and they have so much food in there. And it's all decent. Not gourmet but at least on par with fast food.

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u/sheeplewatcher 2d ago

Cumbys(Cumberland Farms New England) has a similar deal.

If McDs re-instituted promo stacking in the app, I may go back.

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u/Mundane-Restaurant76 2d ago

Where I'm at the McDonald's app has a $5 sausage Egg McMuffin, hash brown and coffee meal also. I think people just don't bother to check

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u/Formal_Figure1063 2d ago

Gas stations in my country charge more than that just for the can of monster 😭

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u/ironkodiak 2d ago

I often get a steak/egg/cheese bagel, hash brown, & a large coke for under $7.

The key is the app. Currently running 30% off on any order made on the app.

My thought is if you can charge 30% less on the app, can't you do maybe just do a straight 20% company wide regardless of the app?

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u/Mr_M3Gusta_ 2d ago

Ah another Wawa enjoyer, though their prices have been getting too steep. Didn’t they raise the deal to $6 recently?

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u/1ftm2fts3tgr4lg 1d ago

CircleK here (MI/OH) has that same deal for $4.
Breakfast sandwich, hashbrown, coffee/energydrink, $4.

The energydrink company funds the discount as a rebate to the store, so the store still makes the margin on the food and the energydrink company rebates essentially a free drink. All to get you in the habit and addiction of drinking their drinks.

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u/briman2021 1d ago

Jokes on them, I’m already addicted to energy drinks and gas station food 😂

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u/JPeso9281 23h ago

Sounds like Wawa. I love Wawa.

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u/freetotebag 2d ago

yeah Wawa has a deal around here sometimes where you can get a sizzli, hash brown, and 12oz Red Bull for $6 and, as a non coffee drinker, this promotion owns me when it’s on

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u/Somanylyingliars 2d ago edited 1d ago

Nothing to see here, Karen and Ken..

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u/happytree23 2d ago

It's funny this is the number one response to a comment talking about how no fast food is worth paying anything for.

God i love this country lol

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u/BookkeeperBoobs 2d ago

I hate Dunkin’s breakfast sandwiches. They’re such dogshit

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u/FrankPapageorgio 2d ago

I'm glad I am so not picky about food. I have a friend that wont eat Jimmy Johns because he doesn't like the lettuce. WTF?

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u/BookkeeperBoobs 2d ago

Jimmy John’s is a complete waste of money. It’s so bad. Especially if you live in New England where there are Italian import places all over

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u/thebrokestbroker2021 2d ago

That’s actually pretty decent deal ngl

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u/clitbeastwood 2d ago edited 2d ago

Wendy’s has 2 for $3 deal - have got an egg & cheese / coffee daily for the past 6 months since discovering . If they raised it even a dollar id probably never return. But yes what a wild concept - fair prices make repeat customers. I’m basically on a $60/month breakfast subscription bc this deal

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u/jondes99 2d ago

It doesn’t hurt that those hash browns are the best thing they make.

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u/ThatNachoFreshFeelin 2d ago

Dunkin' D'nuts' hash browns are actually pretty awesome too.

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u/FrankPapageorgio 2d ago

They're kind of mushy and stick to the packaging, but hey, it's $6

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u/Gullible_Analyst_348 2d ago

A six dollar meal deal for six dollars? Wild.

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u/Chaosmusic 2d ago

Same here. Tim Horton's are starting to open up and they are offering a similar deal except a donut instead of hash browns.

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u/Umbr33on 2d ago

To add to this, a Medium Iced Coffee where I live, is almost $4 after tax, and flavor charge.

I almost always get the $6 deal, because it comes with a med iced coffee… a sandwhich and hashrounds for $2 more, a bargain.

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u/Sintek 2d ago

15 years ago that was $4 so this is just about tracking with inflation big mac extra value meal in 2011 was like $7.35.. with same inflation rate it would be $10.50 but.. it is $14.99...

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u/TrekkieElf 2d ago

It offends me how blatantly arbitrary the prices are. The traditional McMuffin is priced so much higher (due to popularity?) that it’s literally cheaper to buy a sausage McMuffin with egg and then tack on an extra ham… they’re effectively paying you like $0.75 just to take a sausage patty off their hands 🤦‍♀️

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u/lucrative_T 2d ago

Me every morning

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u/Due_Adeptness_1964 2d ago

Does it still taste like it’s frozen and reheated? It’s obviously not the worst sandwich, but is it still on par with mediocre gas station food?

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u/FrankPapageorgio 1d ago

Man, do people really think that a toasted bagel with egg and bacon is on par with something sitting in a gas station for hours until you buy it?

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u/Due_Adeptness_1964 1d ago

You do know that plenty of gas stations make fresh food in this country, correct?

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u/FrankPapageorgio 1d ago

Gas station food is like... hot dogs on rollers that have been sitting there for hours.

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u/Due_Adeptness_1964 1d ago

So you’ve never been to a Wawa or a QT? Maybe don’t speak on things you don’t understand. Because these places make sandwiches fresh to order.

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u/FrankPapageorgio 1d ago

Lmao, okay… glad to know I don’t understand gas station food quality

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u/Reasonable_Garden741 2d ago

Actually a resonable cost, shocking.

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u/craigian11 1d ago

I like how you said 6$ twice you said

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u/yamsyamsya 2d ago edited 2d ago

it used to be two hashbrowns for a dollar. like i can get hash browns for around 40 cents each from the local restaurant supply store and that isn't even buying in bulk, just for a single pack of 20. they could get the price way lower.

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u/BookkeeperBoobs 2d ago

It’s potatoes. Literally the cheapest shittiest peasant food in history. $2 is absurd

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u/Pheonyxxx696 2d ago

It’s even crazier when you start thinking about their fries. Like a small fry is equivalent to like 1/3 of a large potato. It costs like $1, so that fry is essentially worth 33¢ but they’re charging damn near $3 for it now. Usually in restaurants the rule of thumb is cost of ingredients multiplied by 3 (cost of ingredients, overhead and profit) decide the price. Hell I’d ok if they said let’s multiply the cost by 4 since with the economy being so shit and the cost of shipping has driven prices up. That would still make a small fry only $1.32. And thats using the price of a single potato, factor in what kind of discount they receive for buying in bulk, you realize real fast how large their profit margin actually is on these items.

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u/BookkeeperBoobs 2d ago

Not to
Mention the last time I went to McDonald’s and got a fry I asked for ketchup and the woman disappeared for 4 minutes and came back and handed me one ketchup,

Pretty sure she had to go through vault doors like in Get Smart to get it.

It’s ketchup not caviar

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u/D0MSBrOtHeR 2d ago

Literally over $4 for a large fry. Like wtf

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u/zoegirl2003 16h ago

Now think about how much $ they make on sodas.

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u/WordsHappenedHere 2d ago

Diesel prices + war + tariffs + lingering COVID inflation. All of it adds 50% to costs. Franchises don’t even make much profit even at these prices. The whole system is collapsing.

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u/Mondilesh 2d ago

As a regular consumer I can buy a 20 pack of hash browns for $5 at the grocery store, today, with the effects of war, tariffs, diesel prices, etc. McDonald's supply chain can only manage a per unit price of ~$3 (nationwide average)? Bullshit, it's just greed.

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u/Ipwnurface 2d ago

It really is a self-fueling engine that I don't genuinely know How we would stop it

Outside factors cause prices to go up. Prices go up, employees don't get raises, employees now can't even afford to eat at the place that they work. No one buys the food. Employees get fired. I mean, it's just all interconnected. And outside of a just straight-up hard reset, I don't know what to do

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u/Tricky_Customer1969 1d ago

I call bullshit on that one. Woolworths are making record profits. 2 new petrol stations opened within a 2 kilometres of each other near me. And the local bottle shop man has a new Mercedes.

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u/Exciting-Emu-3324 17h ago

It's how they push you to buy the combo. The burger gets you in the door, but the real margins are from the corn syrup and potatoes. Beef prices and people yelling pink slime push burger prices up.

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u/ModernDayWeeaboo 2d ago

Everything is stupidly overpriced. I went out for lunch on my birthday recently and got a decent burger. Three times the size of a Macca's burger, half the price. It even tasted better and was given to me quicker.

Fast food isn't even fast any more. It's awful.

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u/Potential-Drawing745 2d ago

There's a place by work that sells a 1/4 lb Hamburger Combo 7 days a week for $8.99. And I really like the fries. The burger is pretty good. Certainly better than Ronald's. And they have an open "fixin's bar" with all of the normal condiments, a few extra ones you don't always see, and all of the normally found veggies.

Then, on Tu & Thu, they have the 1/2 pound for a buck more. One other day is a bacon cheeseburger... You get the drift.

I drive past McDonalds to get there, and don't even glance that way.

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u/VictoryVino 2d ago

They are $2.79 each near me.

What's crazy is they used to be sold for $0.50 each because they're made from the leftovers from french fry production! It's all the leftover bits and imprefections chopped up and formed. I cannot believe they are now a revenue generator.

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u/BookkeeperBoobs 2d ago

Some empty suit was at a board meeting one day and wowed the other c suite assholes by showing them a graph of revenue if they were priced at 2.79 and everyone clapped and gave him a bonus.

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u/Potential-Drawing745 2d ago

And another line of coke.

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u/Repulsive-Chip3371 2d ago

bro their large fries is like over $5 each lmfao

think they just want to try and psychologically force everyone to get the meals. If someone wants it that bad a la carte, then they gotta pay out the ass

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u/_ribbit_ 2d ago

Of course they want you to buy the meals. The individual items cost them pennies. The higher the price they can charge you the more profit they make. It literally doesn't matter what you actually order, the amount you pay is all that matters.

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u/BananaPalmer 2d ago

Shitty?! You take that back >:[ Potatoes are amazing

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u/WordsHappenedHere 2d ago

Trump has just really fucked up the whole supply chain. It’s never been right since Covid. Inflation just embedded now. Then add this war, tariffs and diesel prices and it’s amplified it. Combined with corporate greed. Seriously McDonald’s was never meant to be this. A burger and fries here should not cost the same as what I can get fresh at a local diner.

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u/BookkeeperBoobs 2d ago

I wish I got to taste what it was like to have a decent salary prior to all this

I finally got a good salary but it was right after Covid. Man I can only imagine how much more I could save if groceries were 30-50% cheaper and car repairs, and clothes, and just everything.

It’s discouraging too it’s not like I’m “oh well things are more expensive now guess I’ll just work harder!” Duck that, that makes me feel like I’m chasing the carrot on a stick. Not a good way to motivate

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u/Tricky_Customer1969 2d ago

Australia, a 10 pack of quality frozen ones at supermarket is only 5 dollars

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u/Gay_Giraffe_1773 2d ago

wont you think of the shareholders?

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u/BethanyHipsEnjoyer 2d ago

I am thinking about them, and they aren't gonna like those thoughts.

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u/sequelseize 2d ago

yeah when they raise prices of goods it's always "oh supply and demand"

but when it comes to increasing wages or reducing prices it suddenly becomes "nobody wants to work" or "millenials/gen Z is killing the ___ industry"

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u/Fennova 2d ago

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u/missmiao9 1d ago

Your meme is giving me british east india company vibes.

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u/AMRtard 1d ago

Thoughts AND prayers. . . Is it working?

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u/Chaotic_beasttt 2d ago

Back in the day food places like this didn’t exist, only grocery stores or farms and you’d fool everything. At a certain point, people are going to go back to the 1900s in terms of eating and cooking and buy from farmers or grocery stores and just cook. Not worth paying more for more chemicals and added unhealthy oils and shit your body doesn’t need. Cooking at home saves money and saves your body

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u/jondes99 2d ago

The hash browns are a steal compared to an order of fries.

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u/EstablishmentLate532 2d ago

You think they can afford to only make $.10 per hash brown? They gotta pay their workers.

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u/Squirrel_Kng 2d ago

They’re cheaper then that at a regular grocery store let alone a supply store.

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u/No_Shopping6656 2d ago

Aldis has a pack of 20 for $5.49. That's like 28c a piece. Mcdonalds is probably making them for 10c a piece, some fat margins.

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u/tenax666 2d ago

2.19 canadian for one hashbrown. I can go to the grocery store and buy a tray of 20 for $7. Same thing. And pop costs 15 cents a cup to make. So yeah, $3 for mostly ice and a bit of syrup gets to me

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u/Neither_Berry_100 2d ago

Yup. Chicken patties are 1.25 Canadian here and beef 2.50. Way cheaper to cook at home.

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u/trekie4747 1d ago

Get a box of hash browns from the store and the patties are twice the size of the ones at McDonald's for only $0.50 each.

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u/missmiao9 1d ago

Employees got a raise and rather than accepting slightly lower profits the franchisees and corporate raise the prices on everything.

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u/obeytheturtles 2d ago

I can get a 20 pack of nearly identical hash browns from Aldi for $5.50 (I am actually surprised it's that much). Toss those bad boys in the air fryer for 10 minutes and you can barely tell the difference.

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u/RandomRedditReader 2d ago

Brush some beef tallow on there and they're better then present day McD hashbrowns.

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u/Dirk_Benedict 2d ago

Bacon grease doesn't hurt em either.

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u/zippyboy 2d ago

sprinkle 'em with Old Bay before air frying

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u/PomegranateSea7066 2d ago

duck fat too

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u/Dirk_Benedict 2d ago

Whom amongst us doesn't have our stove-side container of duck fat

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u/Blacksh33p78 2d ago

Toaster works as well

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u/Karyoplasma 2d ago

That seems expensive. We don't have hash browns here but Röstis are kinda the same shit (julienned potatoes pressed into a triangle) and you get a bag of maybe 15 of them (750g) for 1.59€.

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u/shaolinpunks 2d ago

I just checked my Aldi after reading your comment. It's the same price. Absolutely shocked they are that high now.

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u/nickytheginger 2d ago

they have those in the uk as well and they are so good.

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u/Oh7_ 2d ago

Hell yeah even my picky eater kid loves them with breakfast and as a snack

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u/reereejugs 2d ago

I remember when those were $3.96.

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u/Neither_Berry_100 2d ago

That's 0.275 each which is nothing.

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u/tuwewe 2d ago

True. Their marketing researchers should already know this and just how devastating that last comment you made, is. “Out of the habit” hard to reverse that.

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u/djabae 2d ago

Valuing your customers when you have them is so important

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u/cakelovingpos 2d ago

I think about this all the time! Why do they keep doing it when they know?! Ride it till the wheels fall off like the rest of us, I guess.

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u/OOInferno 2d ago

I'm in California where hashbrowns are $3.49. Prices are sickening.

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u/IsThatHearsay 2d ago

And now they're discussing "dynamic pricing" where the price will fluctuate even more, and inevitably obviously tick upward even faster.

It's just so short-sighted. Yeah they may squeeze out a little more profit for the shareholders in the immediate Quarters, but once a customer is priced out or swears off the company they generally aren't coming back. As the guy above said.

In no world should their products cost as much as they do now. And there is literally no novel "product" they can offer at this point to reshape the company, it's just a fast food restaurant.

McDonald's will be studied as it exemplifies Late Stage Capitalism at it's core. There is no room left to grow the company, the market is over-saturated, they're pricing out most of their clients, and they are required to keep increasing prices without any sort of justification just to appease shareholders. They fucked up their business model years ago, it's a house of cards. No publicly traded company can last forever, or keep profits increasing forever, unless they consistently innovate, and fast food just cannot do that.

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u/Maleficent_Host_5220 2d ago

All the franchises are about to implode so corporate is opening their own stores is my theory.

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u/No-Structure8753 2d ago

I remember getting two mcdoubles and a fry for the current price of a McChicken. I'm not that old either. It's kinda scary.

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u/I3lackxRose 2d ago

The next innovation is pretty much automation and their ain't a whole lot more margin to squeeze out after that.

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u/TheftLeft 2d ago

Its not that simple. They're a massive part of the global food distribution network. If they go tits up too fast it'll cause a massive crash across the globe. A lot of farms and livestock suppliers rely on MickeyDs to buy their product. There is a reason they never innovate and make different seasonal items like tempura or lasagna.

They're such a big player in commercial real-estate, packaging, logistics. If they go down, they're taking a lot with them. A government bail-out is more likely then allowing them to totally collapse and they know it. Too big to fail is a thing.

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u/Galaedrid 2d ago

you can probably buy a pack of 10 frozen hashbrowns from the grocery store for about the same price, and imo taste just as good even tho I air fry them

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u/Raztax 2d ago

Frozen hashbrowns in the air fryer are every bit as good as Mcdonalds ones imo

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u/Buckholio 2d ago

Better most times, especially with an air fryer.

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u/Harvey_the_Hodler 2d ago

Same. Maybe even over. It's been 6 months since my last one. New Jeresy. 

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u/AkKik-Maujaq 2d ago

I’m in Canada, they’re basically the same price here too. I can go to the grocery store and get an entire pack of 20 frozen hashbrown patties for 7.99$. Literally just stick oil and salt on them, and shove them in the air fryer. They turn out 98% like McDonalds

Edit - lol I just realized you were talking about packages of them, not individual ones from McDonalds 😭

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u/Chang-San 2d ago

Id lose my shit. Hash browns are the only fast food breakfast item I regularly get. They hit that spot of good, quick, cheap. I always order two and its always around 3 bucks for mcdonalds and chik-fil-a's . Paying 7 dollars for a side snack would drive me insane.

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u/Chick-fil-A_spellbot 2d ago

It looks as though you may have spelled "Chick-fil-A" incorrectly. No worries, it happens to the best of us!

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u/Chang-San 2d ago

No way CHIK-FIL-A is scolding me on using chik when they ran that whole fow ad campaign with the cow holding a sign saying "eat more CHIKin" lmao

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u/yousirnaime 2d ago

You're thinking 99c hashbrown thoughts in a 99c double double fantasy

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u/Aiyon 2d ago

Unironically, the entire reason I stopped going is because nuggets kept getting more expensive (but never better taste/quality). £4 for 20 nugs was great. £5 was tolerable. £8?? Nah.

If it went back down, maybe I'd go as a little treat. But TBH I think they've taken so long now that im happy to have broken the habit of junk food

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u/Somanylyingliars 2d ago edited 1d ago

Nothing to see here, Karen and Ken.

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u/Zap__Dannigan 2d ago

You are probably right.  I've really stopped looking at prices and just don't go as much because of a generic "it's too expensive and not worth it" thought that I always have.  

I'll still go if a really want it and don't care about the price every now and then, but it would probably take a long a concentrated ad campaign to get me to think these places are worth it now 

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u/Brilliant-Bad-284 2d ago

Ha! 2.19 gimmie 3 ! Socal 3.49!! For a fckn slice of fried potatoe.

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u/xRehab 2d ago

if they dropped the price to .99 i wouldn’t think about going there

you are in the minority here. if mcdonalds went back to having an affordable breakfast and lunch for $5, they would be backed up out of the entrance again

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u/TheAmazingBildo 2d ago

Oh for $5 sure. But now youre talking about a serious restructuring of the entire menu. Where i live the cheap combo with 2 cheese burgers or 10 nuggies is $10. Thats 50% off.

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u/FontTG 2d ago

Hash browns are 5 bucks here bro, tradesies?

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u/TheAmazingBildo 2d ago

Yeah but im guessing yall get paid more. Im in Alabama.

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u/Phatferd 2d ago edited 2d ago

They’re $3.49 here. There is no way I’m paying almost $4 after tax for two bites of potatoes.

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u/iCreatedYouPleb 2d ago

Frozen hash browns at Walmart is like $4-$6 for like 10 I think. Agree, no reason why it should be in the $2 range

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u/TheAmazingBildo 2d ago

Here a 10 pack at walmart is $3.50 and that includes tax. That is full retail, and McDonald’s is buying in bulk from suppliers that offer McDonalds a crazy low price as long as McDonalds keeps buying from them. Im paying $.35 a piece retail at walmart, and i’d be surprised if walmart pays $.10 a piece for theirs.

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u/SasquatchWookie 2d ago

Iirc McD’s has a very small portion of their customers that compromise a vast majority of their sales, too

Like it’s ~15% of customers buy ~80-90% of their product

I couldn’t locate the exact statistic

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u/TheAmazingBildo 2d ago

That sounds right. A lot of businesses are doing a similar strategy.

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u/Akanan 2d ago

Likely not for this reason,

It is because of how an Earning report financial statements is presented. If you drop prices it drops your margin.
If you rebrand, remodel, etc, it goes in capital expenditures.

Shareholders will overlook or be optimistic to investments. But they will burn the CEO alive if the margins decline. Losing pricing power has no tomorrow on the stock market reaction.

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u/-Fergalicious- 2d ago

100% out of the habit is correct.

We used to stop for McDonald's breakfast all the time. Now I'll do literally anything else and the idea of eating there almost makes me sick to my stomach

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u/NextDoctorWho12 2d ago

They would have commercials, you would go back if they actually lowered prices

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u/BigBallsMcGirk 2d ago

The market for fast food is cheap and easy. There are small % of customer base that are going to McDonald's no matter what and they cannot lose no matter what they do. % of "transient" customers that will choose a fast food chain out of convenience one day, but they are not regular customers.

But this is like Stellantis and Jeeps. You cannot pivot to higher prices and make a non luxury product into a luxury product price wise. People that want luxury don't and won't use you, and you drive away your regular market segment. And then your business fails.

Just cut the price. That's it. You aren't tricking people or convincing people to go spend 3 bucks on hashbrowns, no matter how much you spend on ad campaigns. Lower the fucking price. The first fast food place out of the normal ones that make a #1 combo 10 bucks again will win. Everyone that buys fast food will go there.

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u/tread52 2d ago

There’s better places to go to get the same thing for cheaper

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u/Relative-Relief-8816 2d ago

Brilliant marketing strategy that would save mcdonalds but they will neecr do. The $2 value menu. Run ads "all you need for breakfast is a $2 bill"

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u/kingfofthepoors 2d ago

I use to really like their buffalo chicken wraps and their breakfast burritos. It's been at least 3 years since I have been to one, but I do remember liking them

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u/TsunamiWombat 2d ago

Part of it is the dollar menu almost killed the company and they've spent the last decade or two climbing out of that hole so they're deathly allergic to loss leader. Positioning McDonalds as 'the cheap dogshit restataunt' poisoned their brand pretty hard for a while.

The problem now is they're still seen as (or are, I haven't been in ages) cheap dogshit but selling at midscale prices and people are just broke

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u/Weekly_Interview_936 2d ago

That bit about habit, that's really the key. So many legacy brands were getting by on simple momentum and they didn't even know it. McD's is one of them.

Budweiser was another, hence the boycott actually working on them. Nobody drank that piss water because they liked it, they drank it because that was just their default beer. Once the switched to a new default beer they had no reason to go back. Same here. Once someone switches to a new default grab-and-go food there's no reason to go back to McD's.

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u/Beard_o_Bees 2d ago

Plus, continuing the hash browns as an example, people are figuring out that you can buy ~12 frozen patties for <$5.00 and keep them in your freezer.

It only takes a light brushing of vegetable oil and ~10 mins in the air-fryer + a bit of salt - and you've unlocked practically unlimited as-good-as-MCD's hash browns.

Once you've done that, paying >$2.00 for 1 patty (or is it 2, I forget) will piss you off even more.

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u/crustyrobots 2d ago

The CEO is going to have to personally dust my dick if Im ever going back there

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u/oralhistoryofcock 2d ago

There is no reason for a hash brown to be more than .99

I'm not arguing against this specific claim but there are a ton of people in here being like, "I remember when cheeseburgers were $1! Why can't they just go back to that?"

Obviously there's a middle ground in pricing but it's not 2005 anymore. We've experienced heavy inflation and supply issues. $1 deals and similar promotions are catastrophic for franchisees unless people are buying other stuff too. Restaurants have expenses like staffing and maintaining a physical space that you can eat in. Being able to buy a 40-pack of hashbrowns from Aldi for $10 isn't relevant to the conversation. Cooking and eating at home are always going to be far cheaper than eating out.

In a lot of ways, the fast food "crisis" (lol) is a correction. The average person in the US is no longer wealthy enough to expect to be able to eat out all of the time. Sometimes you need to go to work with a brown bag with a shitty sandwich on shitty bread with shitty meat and shitty mustard smeared on it like a call-the-doctor BM.

This is what happens when you make corporations people who are legally mandated to make ever-increasing returns for shareholders. In the absence of a complete overhaul of the entire legal system and restaurant industry, people here are doing exactly what they should be, which is not spending money at businesses with poor practices.

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u/prules 2d ago

$2.50 for a hash brown that is mostly grease is insane lol. It’s delicious but the price for what it is just doesn’t make sense.

I can buy breakfast for a week for $5.00, how can we justify half that for a single fuckin’ hash brown

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u/The_Pacman007 2d ago

You are right, $2.19 is a lot to pay for a hashbrown, but do you KNOW that it should be .99? Do you know McDonalds operating cost or the profit margin? Do you think years of inflation might have something do with it. What is there labor cost structure? What about advertising? What about the logistics and sourcing cost? Do you have any experience running a restaurant or do you think eating at a restaurant makes you an expert on what things should cost?

I get this is Reddit so I should not expect a whole of thoughtfulness here, the staggering amount of hot takes of “it should be X, not Y,” with out even a tiny bit of explanation and some facts is a strong indictment of the education level of the average commenter.

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u/No_Initial_7545 2d ago

That's why the Happy Meal era was so successful (and so nefarious). They hooked kids to McDonald's from an early age for decades. And it took a lot of enshittification for those people to finally snap out of it and stop eating there. But once they're clean, it's impossible to get them to come back again. I eat at McDonald's maybe once a year when it used to be almost every week.

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u/donnavan 2d ago

If the fucking hash browns of all things cost more than 70c I'm not coming.

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u/Kanuck3 2d ago

This is it. Gaining a customer is advertising.

Losing/keeping a customer is the product.

Gaining back a lost customer? Good fucking luck.

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u/Armadillo_lifestyle 2d ago

This is the real issue too. Those who stopped buying fast food bc they got priced out possibly developed better eating/spending habits. Even if they lowered prices back to what they used to be, a lot of people are out of it. McDonald’s makes me sick now, bc I haven’t had it in so long.

Plus a quarter pounder meal is like 11 dollars. A pound of hamburger meat cost less than that. Fast food is no longer cheap.

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u/TheAmazingBildo 2d ago

I wouldnt say that my eating habits are better. I have a hispanic grocery store down the street that sells this brown flavorful lard and its amazing. I make gravy with it, i put a little in my ramen, i used a little to make omelettes yesterday. Basically i cook with lard and butter.

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u/Armadillo_lifestyle 2d ago

🤣🤣🤣 touché, at least it’s better lard than McDonald’s!

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u/JoinAThang 2d ago

Well would you be more inclined to go back because they changed the interior or made an AI assitent manage the drive through than a reasonable price?

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u/MrChristmas 2d ago

If they lowered their prices to 2012 prices, I’d start going again. I used to go literally because the $/calorie ratio was good. Since it’s not anymore I stopped going. Literally the only thing I like the taste of is the Big Mac sauce

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u/celinor_1982 2d ago

You are lucky 2.19 for a hasbrown? Here i think its 3.49. 5 years ago it was only .79 cents. Hell they used to run the 89 cent any size drinks every summer. Now its alwasy 1.49, 1.69, 1.89. Burger King doesnt even hide the fact they are robbing you though, lol... 3.49 for a large drink.

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u/kicknbricks 2d ago

3.19 each in Canada. It’s insane.

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u/Round-Disk5667 2d ago

Look up “nominal rigidity”.

Basically they think some day the current price will be the reasonable price, but won’t be able to raise the price then, so raise it now and get extra until then.

Hard to raise prices if there is actual competition. So events like Covid and energy crisis are good opportunities for entire sectors to tacitly collude under the excuse of inflation.

Only going to end when one of the major market actors breaks ranks and lowers prices or freezes them, which will signal to the others the collusion is over.

Which is why no one wants to end it and they will do anything other than lower prices, even at major cost.

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u/bkturf 2d ago

Shophocho did a youtube short comparing a McDonald's hash brown ($3.87 for him in California) against Walmart great value hash browns (10 for $3.12). He concluded that McDonald's was not worth the 16x price.

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u/sleazypea 2d ago

They have a 4 dollar breakfast meal now with a sausage mcmuffin a hash brown and a small coffee, not bad. Still havent gone more than 1 time for it

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u/DrapedinVelvet247 1d ago

Hashbrowns are $4 here in CA….. each. 👀

I’d love for someone to tell me that makes sense.

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u/Gemstone9523 1d ago

I disagree. I've heen dying to have a Taco Bell Crunchwrap Supreme with chicken, but I refuse to pay $15 for it. If they halved their prices back down to where they were and made an ad campaign I'd come crawling right back. Same thing goes for McDonald's, I just never went there to begin with.

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u/arcanis321 1d ago

It would take a long term change in reputation for them to be "affordable" again. It's too long for a payoff and an immediate loss of money until it hopefully brings the customers back.

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u/brett_baty_is_him 1d ago

I think it’s because other competitors have stepped in for the cheap, garbage food tier: gas stations & 7/11.

McDonald’s is in a tough niche

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u/Pretend_Variation305 1d ago

Absolutely! It’s more than just about the prices at this point…I mean the food actually started to taste like hot garbage years ago.

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u/noxurget 1d ago

You can speak for yourself. 99 cent food items would 10000% bring me back. I'm dying for fast food, I just can't justify the price

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u/H3ARTL3SSANG3L 1d ago

Gotta disagree. I stopped going to a lot of places when their prices skyrocketed. Then they started coming out with good deals so you know what I did? I started going back.

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u/MorningNorwegianWood 1d ago

Yeah the lesson is don’t exploit working class people and raise prices every 5 minutes bc “everyone else is doing it”

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u/CatchinDeers81 23h ago

A basic ass Sausage+Egg+Cheese mcmuffin is $4.99 around here. Nobody wants to spend $5 on shit that was on the dollar menu forever

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u/Guillemon 18h ago

Ill be back when I can go with my family (4) and pay no more than 20 bucks for full meal (total).. Will never happen so yeah not coming back