We all have heard the name McDonald’s, and it is one of our favorite places where we eat. Who can forget their tasty hamburgers and French fries? Buying food from McDonald’s was very affordable and easy. But with the coming years,It is becoming costlier day by day. We wonder what could be the reason being McDonald’s becoming so expensive.
If you are a McDonald’s lover and don’t know why it is so expensive, here are all the details you need to know.
What is McDonald’s?
McDonald’s is an American food restaurant that was founded in 1940. It is one of the largest restaurant chains. It is famous for the toys it gives with the happy meal, the cheeseburgers, and the famous peri French fries. It serves around 68 million people daily in more than 119 countries. They have more than 39,000 outlets all over the world. It has been ruling the world with its hamburgers since 1940. They have grown all over the years earning love and support from the people.
Why is McDonald’s expensive?
McDonald’s being expensive has numerous reasons, including the fact that the company knows how much popular it is among the people. One of the reasons is that they know people are willing to pay even when the prices are high. Here are a few reasons why McDonald’s is expensive:
- The company provides eco-friendly packaging – It has shifted more towards eco-friendly packages which can be easily recycled. Eco-friendly packages are expensive as compared to normal, Styrofoam packages.
- Uses healthy ingredients instead of artificial ingredients – McDonald’s uses ingredients that are higher in quality and fresh. They try to avoid unhealthy ingredients as much as possible. They use natural flavoring with no fillers or additives, which makes it sustainable and healthy for people to eat. So healthy ingredients do have a higher cost.
- The hourly wage at McDonald’s is high – It has become difficult to find people to work at a fast-food restaurant, so they have to raise their wages so people come and join. This is one of the reasons that to maintain the profit of the company, they have to increase the price rate.
- Popularity among people – McDonald’s is famous among all generations of people, all over the world. The fan base it has made over the years. So people are willing to buy from McDonald’s even when the price rate is high. Because of the service and food they provide.
- Technology update – Over the coming years, technology has grown a lot, and to keep oneself updated and in the market, companies have implemented those technologies. Various technologies that are available in McDonald’s like cardless payments, self-serve kiosks, e-menus, various kitchen types of equipment need to be upgraded, now and then, which has made it costlier.
- Their low price led to a fall in revenue – McDonald’s had a dollar menu in which customers could order food for just $1, but because of the dollar menu, other restaurants had to keep their price rate low so that people come there too which led to the loss of revenue, so McDonald’s had to remove it because of which it is more expensive now.
- Competition among other chains – every company wants to beat the other, to survive, they have to be the best, which costs money. With food service, quality and facilities they provide to their costumers. It costs them too much. So, to maintain all that, they have to raise the price rate.
Conclusion
There are various reasons why McDonald’s is expensive, including the ingredients, high hourly wages, its popularity among people, digitalization. They have built a reputation over the years and won the heart of millions of people. Even after all the fame, McDonald’s still manages to sell their food at quite a reasonable price, and it is one of the reasons people like to eat here. The main reason being their choice in ingredients, people would like to eat healthy than junk even if that means to have pay more for the same food item. Its price rate is quite reasonable and explainable, and it is okay to pay more and get better quality food and service. I hope this was all you needed to know about McDonald’s being so expensive.
Frequently Asked Questions
- Does McDonald’s cost for their ingredients?
Ans: yes, McDonald’s provides higher quality products in their food items like 100 % beef, chicken, fish, etc. they use healthier and fresh vegetables in their food and prefer natural flavoring over artificial flavoring, which costs more than buying cheap ingredients, so it is expensive.
- Why is McDonald’s more expensive than burger king?
Ans: they both have kept their price rates quite reasonably, but McDonald’s is a bit expensive because of the quality of food that it provides and its popularity among the people because it is more iconic to people than burger king.
