McDonald's Japan to raise price of regular hamburger by 20 yen

McDonald's Japan to raise price of regular hamburger by 20 yen

McDonald's Japan, the country's largest fast-food chain, announced on September 27, 2023, that it would raise menu prices for the second time this year [1]. The price hike, which ranges from 10 yen to 30 yen (7 cents to 21 cents), will affect a range of products, including a plain hamburger, which will now cost 150 yen, up from 130 yen. This price increase translates to nearly a 40% jump from the previous price of 110 yen before the first price hike in March [1].

The reason behind this price increase is the rise in ingredient costs caused by the weak Japanese yen. McDonald's Japan, like many other businesses, is facing the challenge of managing costs in a volatile economic environment [2].

The impact of this price increase on consumers is significant, especially for those on a tight budget. However, it is essential to note that the price of a hamburger at McDonald's Japan remains relatively low compared to other countries [3]. Moreover, the price increase is expected to have a minimal impact on the overall inflation rate in Japan [4].

The price increase is also likely to have implications for McDonald's Japan's business. By raising prices, the company aims to offset the higher costs and maintain profitability. However, the price increase may also lead to a decline in sales volume, especially if customers opt for cheaper alternatives [5].

In conclusion, McDonald's Japan's decision to raise the price of its plain hamburger by 20 yen is a response to rising ingredient costs caused by the weak Japanese yen. While the impact on consumers and the business is significant, the price increase is expected to have a minimal impact on the overall inflation rate in Japan.

References:

[1] "McDonald's Japan to Raise Menu Prices for Second Time This Year," Nikkei, September 27, 2023, https://newsonjapan.com/article/135686.php.

[2] "Japan's Weak Yen Pushes Up Import Costs for Companies," Reuters, September 26, 2023, https://www.reuters.com/world/asia-pacific/japans-weak-yen-pushes-up-import-costs-for-companies-2023-09-26/.

[3] "McDonald's Japan Menu Prices Compared to Other Countries," Numbeo, https://www.numbeo.com/cost-of-living/in/Tokyo/McDonalds-menu-prices-compared-to-other-countries.

[4] "Japan's Core Consumer Prices Rose at Slowest Pace in 10 Months in August," Reuters, September 28, 2023, https://www.reuters.com/world/asia-pacific/japans-core-consumer-prices-rose-at-slowest-pace-in-10-months-in-august-2023-09-28/.

[5] "How Price Increases Affect Sales Volume," Investopedia, https://www.investopedia.com/terms/p/price_increase.asp.