The prices of various types of goods are going up in the UK and around the world. Many are especially worried about their energy bills which are not only the highest they have ever been but are also expected to keep rising in the next few months. Similarly, prices of food products are increasing, leaving some with no choice but to go on a diet. After all, eating less might be an opportunity for savings. You have probably noticed these changes but you might be wondering what other products or services have been affected by the skyrocketing inflation. And, you might be surprised that the fast food industry, known for low prices, is also becoming unaffordable for some.
McDonald’s raising prices for the first time in years
A month ago McDonald’s increased the price of its cheeseburger in the UK for the first time in 14 years. It used to cost 99 pence but is now being sold for £1.19. This represents a 20% price increase.
Unfortunately, cheeseburgers were not the only ones to get more expensive. Prices of other food products from the menu such as McNugget share boxes or breakfast meals also rose by 10 or 20 pence. Customers also need to pay more for meal upgrades now.
The last time McDonald’s made its cheeseburger more expensive in the UK was in 2008 when the whole world was facing a financial crisis. This shows how serious the situation is getting.
Following the increases, McDonald’s U.K. and Ireland CEO, Alistair Macrow released a statement to customers and said that the changes were necessary in response to rising costs.
‘Today’s pressures mean, like many, we are having to make some tough choices about our prices,’ he said and added ‘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 also said that ‘We understand that any price increases are not good news, but we have delayed and minimized these changes for as long as we could.’
Examples of other McDonald’s products that now cost more are a Big Mac meal which used to cost £5,09 and is now being sold for £5,39 and McDonald’s coffee, which used to cost £1,49 but is now for £1,69.
McDonald’s cheeseburger prices compared to energy price cap increases
‘Household energy bills increased by 54% in April 2022 and are set to increase by a further 80% in October 2022. A further large price rise in January is also widely expected,’ UK parliament reported.
What that means for energy bills is that the average bill which is currently £1,971 will rise to £3,549. If this inflation rate was applied to McDonald’s cheeseburgers, customers would have to be paying £2.12 for them this autumn. This would be significantly more than the starting price of just 99 pence. When one is getting a burger for less than £1, they do not even feel as if they were spending money. Paying £2.12, however, requires thinking about that for a minute or two before getting one, especially if one is going with a family where a few people are eating.
Experts predict that after the energy price cap rises again in January, an average energy bill will hit £4,266. When comparing this increase to the price of the cheeseburger, one would have to spend £2.54 on it. This would mean that a McDonald’s cheeseburger is almost reaching the price of a meal rather than just a small snack.
And, it is believed that energy prices will get even higher after that.
For the time being, the prices of McDonald’s cheeseburgers are luckily not changing at a pace as fast as the rates of energy. So, you will most likely be able to enjoy this guilty pleasure for just a bit more than a pound for a bit longer. At the same time, comparing the prices of cheeseburgers to the rising energy prices really put things in perspective. Also, if you are not an energy expert, maybe now it is easier for you to get an idea of how quickly things are changing and how significant these changes are.
Other fast food chains are also increasing prices
Although McDonald’s was the first big fast food chain in the UK to make its products more expensive, it has not been the only one. Greggs, for example, increased the price of its famous sausage roll. This perfect breakfast option, loved by practically everyone in the UK, was once being sold for £1,20 but now customers need to pay £1,30. The price of Greggs’ beef pastry went up by an even larger margin, from £1,80 to £1,97. Those who have a sweet tooth will also be disappointed to hear that Greggs’ donuts, which were once sold for just £1 now cost £1.09. These changes might not seem like a lot but if one frequently visits Greggs (and let’s be honest, we all do), it can really add up.
Price increases can also be noticed in the menu of Pret, which although not normally known to be extremely affordable, is a convenient option where many get their breakfast or lunch on an almost daily basis. Or used to as now doing so will require spending significantly more.
The price of a tuna sandwich at Pret has gone up by 50 pence, from £3,30 to £3,80. The same increase can be noticed when looking at the new price of filter coffee, which used to cost only 99 pence but has recently hit £1,50. Price increases at Pret have, therefore, been the most noticeable.
No one knows how the situation will be changing in the next few months but, unfortunately, it is unlikely that the inflation rate will decrease. It is supposed to slow down next year and then things should start getting back to how they used to be. Until then, however, you might have to visit your favorite fast food chains less frequently if you are on a tight budget.