McDonald’s will raise the price of its cheeseburger by 20% in Britain, in the first price hike for the popular product in 14 years, in response to rising inflation.
The price of the cheeseburger will go from 99 pence to 1.19 pounds. The head of the UK burger chain told customers on Tuesday that it will also raise prices on other products that have been hit by rising costs.
“We are living through incredibly difficult times,” said McDonald’s UK and Ireland CEO Alistair Macrow. “Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are feeling the impact of rising inflation.”
The increase, which will push the price of the cheeseburger above the psychological threshold of £1, comes at a time when British consumer price inflation is hovering around 40-year highs and is forecast to exceed 11% in October.
Macrow said the hikes had been delayed as long as possible, and the company remained committed to keeping prices affordable.
The Chicago-based chain, which operates more than 36,000 restaurants in more than 100 countries, also raised prices in the United States 6% last year, in line with increases by other consumer-focused companies facing a higher inflation amid strong post-pandemic demand and supply chain disruption.
The British Retail Consortium said on Wednesday that stores and supermarkets had increased prices by 4.4% in the 12 months to July, the biggest rise since records began in 2005.
Helped in part by rising prices, McDonald’s Corp posted a better-than-expected profit on Tuesday, even as expenses soared.
It also said it was considering adding more discount menu items as higher inflation, especially in Europe, forces some consumers to buy fewer large combo meals.