McDonald's to Increase Prices in Japan Due to Rising Input Costs (2024)

FAQs

McDonald's to Increase Prices in Japan Due to Rising Input Costs? ›

Fast food chain operator, McDonald's will increase the prices of about 60% of its offering in Japan from Sept 30, 2022. The price of its signature big Mac hamburger will rise to 410 yen ($2.85) from 390 yen.

In California, Gov. Gavin Newsom signed into law a new minimum wage measure that raises hourly pay for fast food workers to $20 an hour — a development that some McDonald's franchisees say has forced them to further hike menu items.

The price of Combo meal in fast food restaurant (Big Mac Meal or similar) in Tokyo is ¥810. This average is based on 15 price points. It can be considered reliable and accurate. Latest update: May 15, 2024.

Despite regional economic factors such as minimum wage, property taxes, cost of rent and other goods, franchise owners are also free to account for their own price tags, further complicating the metrics of menu disparities. As noted on the McDonald's corporate website, “McDonald's prices vary by location.

Most countries have a higher minimum wage and social security tax than the US. Most European countries require employers to pay for medical insurance for their employees. Also, real estate cost more and real estate taxes are higher in most other countries. Higher food quality standards.

Since California's new law went into effect to raise the minimum wage of fast-food workers, who are employed by chains of 60 restaurants and more, from $16 to $20 an hour, some fast-food chains have raised their food prices, according to a new study.

Switzerland has the highest McDonald's prices in the world, and I visited one during a recent trip. I spent $31 at a McDonald's in Zurich and got three sandwiches, fries, and some dipping sauces.

The minimum wage. Japan typically has a 40-hour workweek and the minimum hourly wage for workers is established by each region's Regional Minimum Wage Council. The current national weighted average minimum wage in Japan is 931 Yen. The average rose to 961 yen on April 1, 2023.

McDonald's Japan is a leading company in Japan's food service industry with approximately 1.3 billion customers visiting annually.

Who sets prices at McDonald's? ›

McDonald's does not dictate prices. Franchisees set prices based on local market conditions using consultants. They have raised those prices largely in response to their own inflationary concerns, notably labor and food costs.

A recent report by USA Today used survey information compiled by a team of reporters in 18 markets across the country to compare prices over the past 10 years. The survey found that an average medium Big Mac meal has risen in price from $5.69 in 2014 to $9.72 in 2024, an increase of about 70%.

Why does McDonald's offer cheaper menu items than some other restaurants? We serve more than 27 million customers every day, so we buy in bulk. And, as anyone who's ever shopped at a warehouse club can attest to, that means lower prices. Those savings are then passed along to you.

While it would be an exaggeration to call it a low-priced destination, one of the great things about Japan is that you can truly tailor your experience to your budget, meaning that how much you spend is to a good degree up to you. If your budget is flexible, it's very easy to spend money here.

The survey found that an average medium Big Mac meal has risen in price from $5.69 in 2014 to $9.72 in 2024, an increase of about 70%. The price of a medium Big Mac meal ranged in price from $7.89 in Houston to $15 in Seattle.

And it's no fluke—according to one report, the most expensive Big Mac in the world now lies in none other than the United States. It's in Darien, Connecticut, to be exact, where the aforementioned photo was taken. How did a budget-friendly meal like the Big Mac come to cost $18?

In general, McDonald's franchisees pay about 20 percent in labor costs, according to Richard Adams, a consultant out of San Diego who works with McDonald's operators. Thus, doubling those salaries would push that Big Mac cost up 80 cents. For a Dollar menu item like a medium fry, it would go up 20 cents.

Why don't you list prices on the McDonald's website? McDonald's prices vary by location. Ninety percent of McDonald's restaurants are independently owned and operated by franchisees, who have the ability to set their own prices.