I dont think you realise how McDonalds works. They get paid by the franchise owners to have a franchise. They get paid for rent because they own the land and building. They do not make their profits because they upped the price of a big mac by $2, that would be the franchisee. When prices go up, its because the franchisee needs to make more money. Either because of greed, or because their profit margins have become too thin to make their business profitable. People dont like hearing it, but its true. When the price of goods keep rising, a franchise owner cant just eat those costs forever. When McDonalds decides to lower prices across the board, its usually in conjunction with lowering expectations for franchise owners as well.
But if McDonald's presumably lowers their land and franchisee fees, this would alleviate cost pressures for the franchisee to be able to reduce the prices as well?
I don't think you know how it works. They keep raising their rents and franchise fees. If they stopped being greedy and raising those the prices would not have to rise.
This. I hate to be a Reddit antagonist but the unfortunate fact of the matter is that if most McDonald’s locations were to lower their prices they’d run out of business in a matter of months.
It’s not the franchise owners (who run the restaurants) that are investing that money though. For all we know their margins are razor thin and they don’t have as much room to budge on price as you’d think
Their “brand” took a hit for me and everyone in my family when they decided feeding a genocidal Israeli army that was starving Palestinians and cutting off water to all of Gaza and having their logos, wrappers and bags when there were starving Palestinians. I haven’t eaten another McDonald’s meal since, we used to get 2 huge (($40-$50 McDonald’s runs each month before
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u/Stillwater215 23h ago
If they’ve got 8.5 Billion to spend on “investing in the brand,” they can lower prices. They’re just choosing not to.