Inflation Hits America Where It Hurts, McDonald’s (And We’re Not Talking About Your Waistline)

Average Americans are having to make tough choices in order to ease the financial burden of inflation. Whether that means driving less or going to such extremes as eating dog food, the fact remains inflation is going after America’s favorite diabetic palace: McDonald’s.

Do You Want a Side of Inflation With That?

Photo: Eugene Gologursky (Getty Images)

McDonald’s claims it is being squeezed between its own rising costs — as it pays for more workers and for raw beef — and keeping its menu affordable.  The fast-food giant reportedly increased menu prices by about 6 percent last year and, worse yet, says more price hikes might occur. The company had to do so on account of rising wages and the higher cost of food.

Ed Rensi, a former McDonald’s CEO, said that inflation is driving every restaurant in the US “absolutely crazy” and its effect has been “insane.”

“Inflation is driving every restaurant in the United States absolutely crazy,” he told Business Insider, adding that every small business in America was suffering “terribly from this federal inflation.” Adding, “Portion sizes are shrinking. Prices are going up. It’s just insane what’s happening in the restaurant industry.”

Rensi said McDonald’s had recommended “somewhere around 6, 6.5% increase next year” in prices to franchisees, who run around 90% of McDonald’s outlets.

Notwithstanding all of these post-pandemic problems and inflationary measures, McDonald’s joined many other corporations in reporting record profits throughout the pandemic while increasing prices for consumers in the name of inflation.

Even though most Covid-19 restrictions have been lifted, McDonald’s says some of its dining rooms were forced to close or had limited capacity. Who knew people still ate inside McDonald’s restaurants like weirdos instead of having a disgruntled DoorDash driver drop it at their doorstep?

This could be a bad thing for American wallets, but a good thing for their waistlines.

Cover Photo: NBC