McDonald's Japan to raise prices on 60% of items by 10-50 yen

McDonald's Japan to raise prices on 60% of items by 10-50 yen

McDonald’s Japan Announces Price Increases Amid Rising Costs

McDonald’s Japan has announced a third round of price adjustments, raising prices on approximately 60% of its menu items by 10–50 yen, effective January 16, 2023. This follows earlier hikes in March and September 2022, which targeted 20% and 60% of items, respectively. The latest increase reflects ongoing pressures from inflationary trends, including surging ingredient costs (particularly for meat and flour), higher logistics expenses, and the yen’s depreciation against major currencies.

The adjustments span core menu items, such as the 130-yen hamburger (now 150 yen) and 350-yen Teriyaki McBurger (370 yen), as well as small-sized French fries (150 yen to 160 yen). Delivery services and McCafé offerings will also see price revisions, with 60% of delivery items increasing by 10–100 yen and 30% of McCafé items rising by 10–80 yen. The January 2023 update expands the scope, with 80% of over-the-counter items affected, including a 40-yen increase for the Big Mac to 450 yen.

The price hikes align with broader inflationary pressures in Japan, where households face rising costs for 580 items in January 2023 alone, according to Teikoku Databank. McDonald’s Japan attributes the adjustments to maintaining service quality amid escalating operational expenses. However, analysts note that the moves could test consumer tolerance, particularly as competitors like Mos Burger offer higher-quality alternatives at premium prices.

For investors, the adjustments highlight the challenges of operating in a market with historically low inflation but growing cost pressures. McDonald’s Japan’s strategy balances passing on costs to customers while preserving its value proposition—a critical factor in sustaining its dominance in a competitive fast-food landscape.

Japan Today, September 2022: Japan Today, September 2022
Japan Today, September 2022: Grapee Japan, January 2023