McDonald's reveals it’s set to increase prices due to Iran war
McDonald’s bosses have predicted that the US and Israel’s continued conflict with Iran will push fast-food prices up in Britain.
On 28 February, joint airstrikes were launched on Iran, with thousands of troops being shipped to the Middle East, including to the Strait of Hormuz, which remains closed via a United States blockade.
The Iran war caused US gas prices to surge, while reports claim UK supermarkets are gearing up for potential food shortages due to a lack of carbon dioxide being transported.
Another knock-on effect of the US-Israel-Iran fighting is that McDonald’s is set to increase in price to recover costs, as per Lauren Shultz, who took over the UK and Ireland arm last September.
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“Like any business we have to measure cost pressures with where prices need to go,” insisting it would remain value for money compared to its competitors. “There is a predicted slight price increase,” she told The Mirror.
She continued in an interview with BBC Radio 4’s Today programme: “We have been operating in a volatile, inflationary industry for years now.
“With the volatility, though, we are watching where inflation goes. We have long standing, strong relationships with our suppliers, who have given us a lot of cost certainty.
“We will likely to see some prices go up but in a small disciplined way. It is where customers are willing to pay a little bit more.”
Shultz did not reveal exactly which items would receive a price bump.
However, she confirmed that McDonald’s Meal Deal and Saver menu items will remain the same.
This isn’t the first time that head honchos have suggested that change may be afoot at the fast-food giant.
In February, Maccies CEO Chris Kempczinski discussed whether the restaurant’s menu could start catering for the rising number of people using GLP-1 drugs.
He said the chain has not yet been ‘impacted’ by the rise of weight loss medication, with common side effects such as nausea and lack of appetite, but that the business would be open to adapting its offerings.
“We've looked pretty hard, and we don't yet see evidence of [weight loss drugs] really having a material impact on our business,” the businessman claimed.
"Fortunately for us, protein is one of the areas that this consumer, the GLP-1 consumer, is still very much interested in, and we've got a great protein offering on our menu.”
McDonald’s is set to launch an array of new menu items on 28 April, including an exciting breakfast collaboration with hot sauce purveyors, Franks.
The three items that may be heading to your local store include a breakfast wrap, a single, and a double McMuffin. All come with a squirt of Franks RedHot Ketchup.
Ella Scott