Even the dollar drink specials on McDonald's value menus areunsafe due to the effects of inflation.
According to one report, many McDonald's franchisees have been offering customers all sizes of cold drinks for $ 1 to combat decades of high inflation. I have chosen to stop the promotion. In some places, we are starting to raise the price of drinks on a "several dimes" in light of rising costs.
McDonald's operators are moving away from special $ 1 drinks, contrary to the recommendations of the fast food giant's corporate sector. TheWall Street Journalreported by citing sources familiar with this issue.
So far, 16 of McDonald's 56 US markets have decided to focus their ads on value menu prices rather than drink promotions.
This change highlights the impact of weakening inflation on the profits of major US companies. As the Wall Street Journal pointed out, the $ 1 per drink price range was available during the Great Recession and most of the COVID-19 pandemics.
Earlier this year, McDonald's reportedly notified franchisees that the cost of food and paper products used in restaurants would increase by up to 12% on an annual basis.
The company aims to maintain its workforce in a tough labor market, so the cost of key menu items such as beef and workforce is skyrocketing.
According to the Consumer Price Index of the Ministry of Labor, inflation rose 8.6% in May, the fastest pace since December 1981. Prices for food away from home in May rose 7.4% compared to the same month a year ago.
"Franchisees have the flexibility to set prices and create promotions that drive local demand," McDonald's said in a statement.
The post asks McDonald's for further comment. According to the
report, dollar drink promotions are still offered in many US markets and may be offered as limited-time promotions in some regions that refuse to trade.
McDonald's corporate division allegedly notified the restaurant in January that it was clear that it would suspend trading of drinks as needed. In May, restaurants were told that they could shift their marketing efforts to focus on the overall value menu.
Overall,McDonald's rose about 8% year-on-year in the first quarter, company executives said in late April.
The company's global same-store sales increased 11.8% this quarter, surpassing expectations despite increasing financial pressure on US households.
Other major chains that have raised prices in recent months include Starbucks and Chipotle.
