McDonald’s announced that it will be raising prices on its famously affordable menu.
Rising prices have stemmed from the ongoing labor shortages, warranting higher wages for the limited workforce, and supply chain issues that have cost McDonald’s more money on produce, general ingredients and overhead.
According to the Wall Street Journal report, “The Chicago-based burger giant is struggling to recruit enough workers to serve customers as quickly as possible and keep its stores open at full hours, even as the chain offers higher pay.”
Commodity costs rose two percent in 2021, expected to keep rising between 3.5-4 percent in the coming year.
Though beloved for their pricing compared competing fast food chains and budget menu items, prices for customers are expected to go up “about 6 percent” in 2021.
Supply chain issues, labor shortages and COVID restrictions continue to ail industries across the globe, with COVID restrictions keeping locations closed and vaccine mandates depleting capable staff for locations. With Joe Biden’s proposed OSHA federal vaccine mandate slated to fine businesses of 100 or more employees to check for proof of vaccination, the amount of jobs in jeopardy exceeds the tens of thousands.
“In the U.S., roughly 3,000 McDonald’s dining rooms remain closed in areas with high Covid-19 infection rates, or roughly 20 percent of locations,” says the WSJ report.
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