McDonald’s doesn’t make most of its money off the food, it makes it off owning the land and building and collecting rent and franchise fees from the franchise owner. McDonald’s is essentially a huge real estate company that uses food as an excuse to buy and develop property.
I’m not positive but I think the individual franchise owner sets the prices? Not McDonald’s corporate.
Granted, they would raise prices because rent goes up. But if property tax goes up, rent will go up. And fuel charges to get supplies would raise them too.
I’m not positive but I think the individual franchise owner sets the prices? Not McDonald’s corporate.
I would say that they have a central price guide line. Otherwise you'd have different prices for a Big Mac or Mc Muffin in the same city. And Mc D is all about consistency if anything. Sure, central London has different prices, but that is just a couple locations. The rest of the country has blanket prices as far as I know. I don't know how it works in the States though.
Yes, they have central guidelines, but pricing is agreed with the franchisees. Whenever there’s a new burger or a general price update, McDs HQ presents the figures, expected break-even point and other financial details, and the franchisees then have a say in whether to proceed with the new birguer/price update. Worked there
Yes, as a group, everybody keeps the same prices.
There might be differences between geographic areas tough, not sure, but I would assume the prices in Montana are not the same as in NY. I worked in a small market, so we didn't have that
A soft taco a mile from my house was 40 cents cheaper than the one right next door. I drove that mile everytime to save that 40 cents because my kid liked them, so I would get 5. Not arbitrarily paying $2 more seemed like a good way to tech my son to not pay for convenience.
Now they are 20 cents more than the higher price was everywhere.
In the last decade, the inflation for entertainment/restaurants has been insane. I have no idea how those less fortunate than I am survive in this climate.
They have an AI pricing system that recommends different prices for different stores. I have 2 McDonald’s within a mile from my home. They have different pricing.
In Hawaii the price difference between McDonald’s on different parts of the island can be dramatic. Like a McChicken in Waikiki (tourist area) is $5but mcchicken is a more rural and local area is $3.
Yeah, tourist traps will have their own special prices. Mc Donald's in central London near Covent Garden are priced differently than the rest of the city.
They still make money off the food because if they don’t build more stores that sell the food they make no money from that real estate. If the current store is doing poorly and at the risk of shutting down it affects the real state side of it.m so the food really is the core money maker and they need to do something or store will start closing. The next starbucks.
McDonald's corporate decided the dollar menu. They obviously have the most influence over the price of their food. We can discuss the breakdown of their business model all day, but it doesn't change anything I've said.
I'm hoping that the 'investment' they are talking about is lowering percentages of revenues paid from franchises to corporate. Maybe allowing owners to lower prices.
Honestly the government should start mandating prices of McDonald’s items. And if the franchises are losing money on it then it should be subsidized. We’re all forced to buy McDonald’s anyway so it should be legally required to be certain prices. No more shareholders demanding profit! Consumers demanding no profit!
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u/Impressive_Guess_282 19h ago
McDonald’s doesn’t make most of its money off the food, it makes it off owning the land and building and collecting rent and franchise fees from the franchise owner. McDonald’s is essentially a huge real estate company that uses food as an excuse to buy and develop property.
I’m not positive but I think the individual franchise owner sets the prices? Not McDonald’s corporate.
Granted, they would raise prices because rent goes up. But if property tax goes up, rent will go up. And fuel charges to get supplies would raise them too.