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McDonald's Holdings Japan Company announced on Monday that it's raising food prices due to escalating rent and labor costs. This price increase will affect about 184 stores located mainly in the City Centre starting July 19.
The Japanese unit of McDonald's explained that it was forced to increase the prices due to the rising cost of rent and labor. The company said that the new price hike will take effect in about 184 stores which make up around six percent of the total locations in the country, which has now reached 3,000.
As per Reuters, as McDonald's Japan implements the new prices, 40 restaurants have already started selling at higher rates. These branches are mostly located in the city center and special locations like motorway service stations and airports. They have labeled the raised prices as the "city center pricing" since it is not a nationwide order.
McDonald's said that the new rates at some Japanese stores will be in effect starting July 19. Customers may expect an increase from 10 to 90 yen for food items. For Big Mac burgers, the price for delivery orders will go from 540 yen to 590 yen or about $4.16.
BNN Network noted that McDonald's Japan's decision to increase its prices is a move to pass some of its expenses to the customers. Many companies are struggling to deal with the mounting costs not only on labor and rent but on the supply of raw materials and ingredients as well.
In fact, McDonald's is just one of the brands making this adjustment to help cover the costs. This development only shows the necessity for businesses to adapt to the changing economic conditions since this is the only way to survive, remain competitive, and be sustainable.
Photo by: Andrea Leopardi/Unsplash
