Not loving it! McDonald’s puts up the price of a cheeseburger for the first time in 14 YEARS from 99p to £1.19 from TODAY and warns it will raise prices of other items from 10p to 20p as cost-of-living crisis bites
McDonald’s today hiked the price of its cheeseburger for the first time in 14 years – now charging £1.19 instead of 99p – and will also make breakfasts, extra value meals, chicken nuggets and coffee more expensive as the cost of living crisis bites Britons even harder.
The fast food giant has claimed that it could no longer protect customers from the soaring costs caused by rising inflation hitting the cost of produce, energy, fuel and wages.
The company told UK customers that from today it is lifting the price of a cheeseburger from 99p to £1.19 – the first increase since around 2008 – in the latest sign of mounting pressure on consumers.
McDonald’s said that it is increasing the price of ‘menu items impacted most by inflation’.
This means price rises of 10p to 20p for the ever-popular breakfast meals and extra value meals as well as McNugget share boxes, large coffees and the McFlurry ice cream. The ‘go large’ option on meals is up by 20p. These rises are expected to be brought in this summer.
Price shock: McDonald’s is hiking the price of its cheeseburger from 99p to £1.19 – the first rise since 2008
However, McDonald’s stressed some products will be unaffected and others will vary across the UK as some prices can be altered by franchisees. But on the saver menu, different franchises tend to charge the same amount, hence the rise to several staples.
McDonald’s UK & Ireland chief executive officer Alistair Macrow said the increases are needed to help the business cope ‘through incredibly challenging times’.
‘Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation,’ he said in an email to customers.
‘At times like this, we know that providing great value is important.
‘Since we opened in the UK in 1974, we have committed to offering great tasting food at affordable prices, and that commitment will not change.
‘But, today’s pressures mean, like many, we are having to make some tough choices about our prices.’
McDonald’s said it understands that increases ‘are not good news’ and told diners is has ‘delayed and minimised these changes for as long as we could’.
It is the latest hospitality business to warn over rampant cost increases, a week after the ONS reported that inflation hit a 40-year-high of 9.4% last month.
Economists have predicted it will rise to 11% before the end of the year.
The grocery giant behind some of the biggest names on supermarket shelves – from Marmite to Magnum, Dove and Pot Noodle – has increased prices by 11.2 per cent in a year.
Unilever, which is responsible for 400 brands sold around the globe, said it had been forced to pass on increases in its own costs, including raw materials, which amount to about £4billion this year. Company bosses said further increases were in the pipeline.
Industry analysts said the era of high price rises was here to stay against a background of rising cost of commodities, ingredients, energy, staff and fuel. Andy Searle, of management consultants Alix Partners, said: ‘We’re going to be stuck in this environment for a significant amount of time.’
It comes as retailers said shop price rises were running at their highest rate since at least 2005. The biggest increases were seen on fresh food, including fruit, vegetables, meat and dairy, which rose by an average of 8 per cent.
Dettol maker Reckitt has hiked prices for customers rapidly over the last year yet has continued to sell more products, the company has revealed.
The business said on Wednesday that it had increased prices by 9.7% in the second quarter of the year, compared to a year ago.
Yet despite a huge hit to wallets around the world, shoppers have not been voting with their feet, Reckitt revealed. The volume of products it sold continued to increase, by 2.2%.
Between higher prices and more sales, the business posted an 11.9% hike in like-for-like revenue, hitting £3.5 billion.
Even Amazon is to hike the price of its Prime delivery and streaming service from £7.99 to £8.99 a month.
Annual membership will increase in the UK from £79 to £95 per year.
The price rises will take effect from September 15 for new customers, or on the date when existing customers’ renew their subscription.
The technology giant blamed ‘increased inflation and operating costs’ for the hikes. .
Amazon’s Prime service offers unlimited free delivery of products, streaming of TV and films, and live sport.
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