News McDonald's Japan to increase prices for 80% of its products

thomas · 7 Jan 2023

Yesterday, McDonald's Japan announced that it would increase the prices of 80% of its products as of 16 January to cover soaring expenses, including material costs, and a weaker Japanese yen. It is the company's third price hike in less than a year.

The fast food chain said the price hike is due to soaring material costs, rising labor, logistics and energy expenses, and rapid fluctuations in currency exchange, among other factors. Last year, McDonald's Japan raised prices of about 20% of items in March, and roughly 60% of products in September. In the latest price hike, a Hamburger will be priced at 170 yen (approx. $1.30) -- up from 150 yen, a Cheeseburger will retail for 200 yen (about $1.50) -- up from 180 yen -- and the price of a 15-piece box of Chicken McNuggets will be raised to 710 yen (roughly $5.40) from 590 yen.

McDonald's Japan to hike prices of 80% of items from Jan. 16 as costs soar - The Mainichi

TOKYO -- McDonald's Japan will raise the prices of some 80% of items on its menu from Jan. 16 to cover soaring expenses including material costs, the

mainichi.jp

McDonald's is not the only fast-food chain implementing price hikes in response to rising materials costs.

Pepper Lunch, a steak and hamburger restaurant chain, also said on Friday that it will raise prices of its popular teppanyaki dish with rice and thinly sliced beef by 40 yen for all sizes, the first price increase since June. The small size "Beef Pepper Rice," as a result, will sell for 720 yen instead of 680 yen.

Paywall alert:

McDonald's Japan to raise prices on 80% of its items

Series of hikes will leave classic burger 55% more expensive in less than a year

asia.nikkei.com

musicisgood · 8 Jan 2023

McDonald's and Gusto's are now importing french fries from China. Another on my NO LIST to order. At least their Vietnamese coffee I think is good.

Majestic · 9 Jan 2023

Is it just me or do others find it unusual that A) these price increases are announced in advance, and B) treated as national news items?

I feel as if in the US, producers and retailers just move prices as a normal part of business, and that individual chains raising prices on specific items is just never treated as any kind of news event. Gasoline prices get national coverage when they spike (like over the summer holidays). But I just can't imagine US news organizations reporting on a unique item price like this.

Inflation is reported, and price of commodities are reported. But would a US news organization make a story out of the price of socks at Macy's? Is there even a "national price" for something like pancakes at Ihop?

Or is it just the sheer size of America that makes national pricing impossible, and therefore "national price changes" are not a thing like in Japan?

mdchachi · 9 Jan 2023

Majestic said:
Is it just me or do others find it unusual that A) these price increases are announced in advance, and B) treated as national news items?

I feel as if in the US, producers and retailers just move prices as a normal part of business, and that individual chains raising prices on specific items is just never treated as any kind of news event. Gasoline prices get national coverage when they spike (like over the summer holidays). But I just can't imagine US news organizations reporting on a unique item price like this.

Inflation is reported, and price of commodities are reported. But would a US news organization make a story out of the price of socks at Macy's? Is there even a "national price" for something like pancakes at Ihop?

Or is it just the sheer size of America that makes national pricing impossible, and therefore "national price changes" are not a thing like in Japan?

These kinds of things are treated as financial news. So it does make the news but quickly gets buried the next day. Example:

McDonald's Just Revealed How Much It's Raising Its Prices This Year — Eat This Not That

The chain has been increasing its menu prices over the last year in order to keep pace with increasing costs of labor and supply.

www.eatthis.com

But the thing that may be different in Japan is that the company seems to be going out of its way to make the announcement whereas in the U.S. it's usually related to corporate earnings/performance and comes out during the mandatory financial reporting period.

Lothor · 9 Jan 2023

Majestic said:
Is it just me or do others find it unusual that A) these price increases are announced in advance, and B) treated as national news items?

I feel as if in the US, producers and retailers just move prices as a normal part of business, and that individual chains raising prices on specific items is just never treated as any kind of news event. Gasoline prices get national coverage when they spike (like over the summer holidays). But I just can't imagine US news organizations reporting on a unique item price like this.

Inflation is reported, and price of commodities are reported. But would a US news organization make a story out of the price of socks at Macy's? Is there even a "national price" for something like pancakes at Ihop?

Or is it just the sheer size of America that makes national pricing impossible, and therefore "national price changes" are not a thing like in Japan?

Good question! Possible factors (rather than answers) may be 1) the tendency to avoid surprises as much as possible in Japan and 2) the large amount of airtime on Japanese TV devoted to 'news' and the need to fill this airtime. I was amazed by how much airtime the media managed to fill on the recent partial closing of the Yamanote line for two days. Certainly such price increases are not announced nationally in advance or reported as news items in the UK.

fouad · 9 Jan 2023

On my last visit in july 2015, the Big Mac was about 800 Yens

thomas · 9 Jan 2023

fouad said:
On my last visit in july 2015, the Big Mac was about 800 Yens

Are you sure? No McDonald's customer here, but 800 JPY sounds awfully steep.

Burgers | マクドナルド公式

Check out McDonald's new, limited and regular burger menus for breakfast, regular and dinner time. Order and pay in advance on your smartphone without waiting at the cashier and just pick up at store nearby.

www.mcdonalds.co.jp

Big Mac set perhaps?

Bai Big Mac Set | Menu | マクドナルド公式

日本マクドナルドの「Bai Big Mac Set」を紹介します。

www.mcdonalds.co.jp

fouad · 11 Jan 2023

You're right. It usually goes with fries and a coke

News McDonald's Japan to increase prices for 80% of its products

thomas

Unswerving cyclist

McDonald's Japan to hike prices of 80% of items from Jan. 16 as costs soar - The Mainichi

McDonald's Japan to raise prices on 80% of its items

musicisgood

Sempai

Majestic

先輩

mdchachi

Moderator

McDonald's Just Revealed How Much It's Raising Its Prices This Year — Eat This Not That

Lothor

Freelance proofreader

fouad

Kouhai