If it seems like a Filet-O-Fish at McDonald’s is super expensive lately, you’re not wrong. According to FinanceBuzz, the prices at the Golden Arches have increased 100% since 2014 across all of their menu items, which is higher than any other fast food chain. So it’s no wonder people have been grumbling about the price of Happy Meals and Big Macs. There are multiple reasons why McDonald’s prices have gone up, the most obvious, of course, being record-high inflation, food costs, and higher wages in the past few years. But now that inflation has cooled off, customers are wondering why a Quarter Pounder still costs the better part of $10. Even worse, there are widespread reports that customers are being charged for bags when they order takeout. So what gives? One former Mickey D’s chef thinks that a hidden cost of food is the price of buying and repairing the equipment required to run each store.
Mike Haracz, a former corporate chef at McDonald’s said on his TikTok recently that every store is only allowed to use equipment that is customized specifically for the company and built by approved suppliers. As such, they have no choice but to pay whatever the price is for each individual item, like headsets and ice cream makers, rather than source equipment on the open market.
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McDonald’s Equipment Supply Chain Is Limited
While the price of McDonald’s food can’t be entirely the fault of the price of equipment, Mike Haracz makes a good case for how the entire McDonald’s supply chain is under stress and could be pushing up costs for individual franchise owners. “McDonald’s supply chain negotiates contracts with suppliers, helps develop the thing, it is always unique, and it’s specifically for McDonald’s,” Haracz said about each piece of equipment inside every McDonald’s store, “and then owner/operators have to buy those things.”
The problem also extends to fixing broken equipment, like the infamous ice cream machines. Since only authorized companies can work on the McDonald’s machinery, or the owner risks voiding the warranty, the repair process can take weeks or months and the owner is at the mercy of paying whatever the company charges for repairs.
Ultimately, however, the company can’t sell what people won’t (or can’t afford to) buy. So when their recent earnings reports showed that prices are scaring away customers, McDonald’s rolled out their $5 Meal Deal in June 2024, and have decided to extend it through the fall and winter. So while it will never be as astonishingly cheap as it once was back when they first opened, with a little strategic ordering, there are still a few bargains to be had.
Read the original article on The Daily Meal.
