After McDonald's price hikes spark backlash, CEO speaks out about ‘outrageous’ prices.
On social media, customers are frustrated after McDonald's price hikes.
Customers have been venting their anger on social media after McDonald's menu prices jumped significantly.
A video went viral on TikTok, showing images of receipts displaying McDonald's food at 'outrageous' prices, leaving viewers stunned.
Below the post, several customers expressed frustration with McDonald's prices.
In the comments section, viewers criticized McDonald's for their 'outrageous' food prices. Questions like "What has the world come to?" echoed across platforms.
One person said: I used to work there years ago and it definitely isn't the same, prices, quality of food, and the service. Employees are getting younger and disrespectful. And yes,smaller portions.
A second wrote: The last one I got the fish was so tiny and they put so much tartar sauce on it that I ended up throwing half of the mess away. Never again.
While a third commented: The fries used to be the best now their little thin pieces of potatoes.
Someone else said: Minimum wage went up so there's that!
Another added: If McDonalds wants to charge the same price as higher end restaurants, people will ultimately choose by taste and convenience instead if price.
After customer frustration boils over, McDonald's CEO immediately explains the reason behind their 'outrageous' food prices.
On the website, McDonald's explains that their food prices are 'outrageous' because franchises can set their own prices, but this can lead to unavoidable inflation in line with increasing costs and high demand.
However, the price hikes haven't gone unnoticed by corporate.
In the wake of the backlash from customers on social media, CEO of McDonald's, Chris Kempczinski, revealed a disappointing sales report.
Wall Street predicted a 4.7% sales increase, but McDonald's only managed 3.4%. While citing international conflicts impacting overseas franchises, Kempczinski admitted cost concerns and pledged to prioritize affordability in 2024.
Additionally, Kempczinski explained that more and more customers with low income (earning less than $45,000 per year) are ordering less from McDonald's.
Instead, they are choosing to eat at home more as the cost of groceries decreases.
Shifting consumer habits are the reason behind McDonald's 'outrageous' prices
This shift is likely due to the increased affordability of eating at home as grocery prices stabilize. "The battleground is with the low-income consumer," Kempczinski acknowledged.
Moreover, CFO Ian Borden expressed hope for a "meaningful improvement" once the Middle East conflict is resolved.
However, restaurant analyst Mark Kalinowski believes price hikes will continue, albeit at a slower pace (2-3% annually). He predicts McDonald's will rely heavily on targeted mobile app deals to attract customers.
