Report: McDonald’s Raises Prices, Closes Stores as Worker Shortage Continues
McDonald’s says they are forced to raise menu prices as worker wages climb, as well as close down some restaurants due to labor shortages and slower service in some locations, according to reports.
The burger giant is raising menu prices in order to sustain the rapidly growing costs of supplies and wages, according to the Wall Street Journal. The report indicated that the company had increased salaries by at least ten percent this year alone.
The report added that the company also has to pay more for paper, food, and other supplies and expected the commodity costs to go up anywhere between 3.5 percent to four percent. Unfortunately, executives said the prices in the U.S. are up roughly six percent from last year, which will trickle down to the consumer.
McDonald’s said that bigger order sizes and higher prices increased its revenue in the U.S., as did its new crispy chicken sandwich and celebrity-endorsed meals. Diners are placing more to-go orders and buying for larger groups than before the pandemic, contributing to higher sales per customer, executives said.
…
McDonald’s, the world’s biggest burger chain, said that it had fewer Covid-19-related restaurant closures over the past quarter in major markets such as Canada, France and Germany, helping McDonald’s sales in those countries. Still, vaccine health pass requirements in France and quarantine orders in Australia, for example, made operations more challenging, the company said.
In the U.S., roughly 3,000 McDonald’s dining rooms remain closed in areas with high Covid-19 infection rates, or roughly 20% of locations. U.S. sales remain elevated at drive-throughs, online and through delivery, even after reopening a location’s dining room, executives said.
Responses