McDonald’s Japan hikes prices in city centres as costs bite

McDonald's Japan hikes prices in city centres as costs bite
Customers are seen through the windows of a McDonald’s store (top) in Tokyo, while others stand in line in front of cash registers, Jul 22, 2014. (File photo: REUTERS/Yuya Shino)

TOKYO: The Japanese operator of McDonald’s restaurants said on Monday it would raise prices at 184 city centre branches, equivalent to about 6 per cent of its 3,000 stores, to help absorb higher rents and labour costs.

Until now, 40 stores in some city centres and special locations such as airports and motorway service stations had been subject to “city centre pricing”.

McDonald’s Holdings Company Japan said the new pricing would start on Jul 19.

Many businesses have begun passing on to consumers the higher costs of imported energy and raw materials.

McDonald’s, Japan’s largest fast-food chain, has led the way with three price increases across all outlets since March 2022, including the latest one in January.

McDonald’s said the latest round of hikes would range from ¥10 to ¥90 per item or set. The delivery price of a Big Mac would rise to ¥590 (US$4.16) from ¥540, it said in a press release.

The yen has fallen to 141.81 to the dollar, from around 133 at the beginning of the year.

Source: Reuters/px