Former Corporate Chef Says McDonald's Is Losing Customers Due to Price Hikes

"So, lower income folk, McDonald’s is not the place you wanna go for affordable food options anymore.”

Feb. 13 2024, Published 8:47 a.m. ET

What’s the point of a restaurant with Extra Value Meals if there’s no extra value? According to a former McDonald’s corporate chef, the restaurant chain might be more than OK leaving the values behind.

Like everything else related to food, costs have gone up at McDonald’s in recent years. Inflation and demand are why the $16 Big Mac Meal has gone and stayed viral for nearly a year.

Known for decades as fast food’s most reliable place to get a very affordable meal, McDonald’s has been less and less affordable in recent years.

If you’ve already thought the Golden Arches may be intentionally leaving a certain demographic behind, you won’t be surprised by a new TikTok video going viral.

“Remember when I said McDonald’s is abandoning the value consumer?”

Chef Mike Haracz begins his February 5 video by asking people if they remember certain menus and ad campaigns intended to attract people earning below a certain amount of money.

“I’m a former McDonald’s corporate chef and in an earnings call this morning they fully admit they are losing the value customers, specifically those that are making $45,000 a year or less, and they are losing them to the grocery store. So they fully admit you can go to the store and make the same food for a lot cheaper."

He’s no longer unsuitable according to se, however he doesn’t mention that meals costs at grocery retail outlets have additionally gone up, in maximum parts of the country a lot more so than McDonald’s prices.

According to the Big Mac Index (sure, an actual way to measure inflation), Big Mac prices have long gone up .92% from December 2022 to December 2023. According to the US Inflation Calculator meals prices have risen 2.7% in the similar time.

According to Chef Mike, McDonald's is no longer for "lower income folks."

The second takeaway from Chef Mike’s video is about McDonald’s clientele.

“They are saying that they are successful this year even though they have lost a large number of foot visitors, meaning now not as many people are going to McDonald’s as a result of they regularly elevate the prices to these absurd levels. Middle-class and higher-class persons are nonetheless going to McDonald’s, making them extra winning. So, decrease source of revenue people, McDonald’s is no longer where you wanna go for reasonably priced meals options anymore.”

"McDonald's abandoning value consumers!" is catching on

With over 134,300 likes, 7,134 feedback (mostly echoing what Chef Mike claims), and a few thousand stocks, Mike's video is attracting reasonably a few people who think there's now not nearly as much price as there as soon as was once — and they are sharing their McDonald's alternatives.

"Nah they lost me to the Texas Roadhouse next door. I can get a kids meal to go with more food for less," one follower commented sooner than any other added, "It’s almost $5 for large fries where I am. It’s cheaper to take the family out to full service Thai now."

A 3rd chimed in, "I just go to my local Mexican restaurant. I can get a full meal with a drink under $10 with great portion sizes fresh every time."

Yes, food prices have long gone up however the same meal is now not $Sixteen everywhere

It is vital to notice that McDonald’s are franchised and not all menus are priced the same. A typical Big Mac Meal is $10.59 on the McDonald's nearest to me. The identical meal at the second closest McDonald’s is $10.09 and one fairly further is $9.89. That’s just about a greenback difference for the same meal at 3 different McDonald’s within a one-mile radius.

McDonald's may no longer be intentionally going after price customers, however their prices are in line, decrease in fact, than food inflation.

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