When inflation hit with full force in 2022, restaurant industry analysts predicted McDonald’s would benefit as “fast-casual” customers would trade down to more affordable fast food. However these consumers often encountered rapidly escalating prices at the iconic chain.
When McDonald’s reported fourth quarter earnings, company executives blamed the lackluster performance on the war in the Middle East, but had to admit some of the problems might be closer to home.
“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 the conference call.
To be clear, McDonald’s is still a highly profitable company. But same-store sales in the fourth quarter grew by 3.4%, well below the expected 4.7%. One quarter earlier, McDonald’s increased menu prices. Many McDonald’s regulars noticed.
“Not only have their prices gone through the roof (literally cheaper to eat at a sit-down restaurant and faster) but they also now ALWAYS make you park and wait for food,” Jilaine, of Altamonte Springs, Fla., told ConsumerAffairs.
Diane, a McDonald’s customer from Tampa, claims the quality of the food took a dive at about the time prices went up.
The Big Mac's bun was dried out and the fries were lukewarm,” Diane wrote in a ConsumerAffairs review. “I placed my order around 4:40 pm and would swear it was all left over from lunch. What a disappointment that the prices have skyrocketed and the food was TERRIBLE!!!”
No more free refills?
Tonika, of High Point, N.C., says you also get less for your money. She said that after paying nearly $19 for two meals she was denied a free beverage refill at a New Jersey McDonald’s. At that point, she said he confronted the manager.
“He said we don’t give out refills,” Tonika told us. “I said you guys don’t give refills? He said we have not given out refills in about two months.”
According to Fortune, McDonald’s is no longer the cheap food option it once was, also noting an increase in complaints about the price of the Big Mac meal, which is now approaching $18.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-02-08 12:13:52
