McDonald’s has been one of the businesses that are feeling the effects of inflation. This has forced the brand to boost its pricing.
Former McDonald’s USA CEO Ed Rensi claimed that inflation is pushing every restaurant in the country completely insane. With the product prices have increased significantly, the portion sizes are getting smaller.
The cost of living is rising. “What’s going on in the fast-food industry is ridiculous,” Rensi commented on “Cavuto: Coast to Coast.”.
“It’s also valid of every other small business. This federal inflation is doing havoc on them all,” he added.
McDonald’s predicts that inflationary pressures will persist this year. Despite profits and sales falling short of expectations.
In the United States, the Golden Arches burger company stated that very same sales or revenue from restaurants that have been open for at least a year have gradually increased.
McDonald’s also commented in January that same-store sales had increased by 13.8 percent for the full year. Therefore, marking the best U.S. yearly comparable sales ever reported.
“Franchisees own 90 percent of the firms.” They’re really close to their customers…they’re aware of their local prices,” Rensi said.
McDonald’s has recommended an increase of roughly 6.5 percent next year. The reality is that each franchisee is free to set their own prices depending on local demands.
Aside from inflation, another key issue, according to the former McDonald’s CEO, is the trucker shortage, which is wreaking havoc for the restaurant industry.
“The most serious issue we have is a shortage of truck drivers, which has caused a disturbance in the flow of goods into the nation. This truckers crisis has been massive and has had a significant impact,” he continued.
Meanwhile, coronavirus vaccine regulations are wreaking havoc on firms that are already dealing with rising expenses and labor shortages.
The new omicron variety adds to the pressure on businesses that are already struggling as a result of the epidemic.
“If you look at the jobs report, if you believe our data, and to be honest as of now we are recovering from COVID, according to the reports. We can start to loosen up a little bit and let our body manage it rather than the government” Rensi concluded.
In the United States, the Golden Arches burger company recorded a 7.5 percent increase in same-store sales (restaurants open for at least a year) from October to December.