Hello everyone, I'm Xiao Feiliang.
The price increase at the end of the year seems to be McDonald's usual routine.
At this time the year before last, McDonald's announced the first price increase, from 12 yuan to 12$9.
I scolded:
At this time last year, McDonald's announced a 1+1 price increase of 1 yuan, from 129 yuan rose to 13$9.
I also scolded:
I originally thought that there would be no more moves in Mai Mai this year, and everyone would be able to enter 2024 in a full state of mind.
Unexpectedly, Mai Mai still didn't stick to it, and went under the knife for the third year in a row.
A few days ago, McDonald's famous undercover agent "McDonald's Crispy Hash Browns on the Run" broke the news:
McDonald's raised the prices of its main products across the board on December 27, and nearly 90% of the listed prices of major hamburger snack products will be raised by 0 from December 27$5. McA** synchronously increased by 1 yuan.
The news of McDonald's price increase last year was also the first news he broke the news, which is basically equivalent to a stone hammer.
Soon, McDonald's official customer service came out to respond that the message was true:
On December 27, McDonald's will adjust some single products and ****, and the price will be clearly marked on each ordering channel.
Some friends may feel that the increase of five cents has little impact, but no matter how small the increase is, it can't stand McDonald's coming every year.
And nearly 90% of McDonald's products will rise, and we will eat more than just McDonald's, so it will rise by several dollars.
What's more, McDonald's is raising prices every year, are our wages rising every year, so I suddenly stiffened my fist when I thought about it.
According to today's latest news, McDonald's 1+1 Match did not participate in this price increase, which is probably the only good news in this price increase.
In fact, many of the originally faithful "Maimen believers" had a lot of criticism of Mai Mai during this time.
The dissatisfaction is mainly focused on the quality of McDonald's products.
For example, McDonald's McSpicy Chicken Leg Burger was originally said to be spicy, plump and juicy, and big, but now the burgers are getting smaller and smaller, and the chicken steak is also dry, which is a big disappointment.
McSpicy chicken wings are even more heavyweight, the original golden McSpicy chicken wings are fragrant and spicy, and they are very refreshing to eat.
Now the main one is salty, and the spicy taste is also unnatural, and it is said that the recipe has been changed, but I am not sure. I used to eat spicy chicken wings and never sprayed, but now I have to spray once in a while.
In the case of the decline in the quality of McDonald's existing products, they are still under the pressure of being scolded, and the price has increased for the third consecutive year, which is really incomprehensible.
Then some friends are about to ask:
Could it be that McDonald's has to raise prices because of its poor performance this year?
This assumption seems reasonable, but it doesn't make sense.
On October 30, McDonald's released its third-quarter results, with revenue of 66US$9.2 billion, up 14% year-on-year;Net profit 23$1.7 billion, up 17% year-on-year.
In addition to year-over-year revenue and net profit, McDonald's same-store sales also increased by a single digit year-over-year.
McDonald's global same-store sales increased by 88%, while same-store sales in the international development franchise market, led by China, maintained double-digit growth to 105%。
So the domestic performance is quite good, and then McDonald's is also....The price has gone up?
This is obviously not the real purpose of McDonald's price increase, so why did McDonald's raise prices for three consecutive years?
To answer this question, we need to understand the long-term development goals of McDonald's in China.
On August 8, 2017, McDonald's reached a strategic cooperation with CITIC Capital, CITIC and The Carlyle Group, ushering in a great change for the global chain of Western-style fast food giants, officially entering the era of Golden Arches.
As soon as the Golden Arches era began, the leadership of the Golden Arches put forward the "First Five-Year Plan".
What is the content, that is, "by 2023, the number of stores will reach 4,500, and the turnover will maintain double-digit growth." ”
Judging by the results, the Golden Arches can be said to have achieved this goal perfectly.
That five-year plan was reached, and the next five-year plan was to come.
The next five-year plan seems pretty straightforward:
In 2028, the number of Golden Arches stores will exceed 10,000.
Zhang Jiayin, president of Golden Arches, said that McDonald's spent 68 years to open 14,000 stores in the United States, and their population is only 300 million.
Regardless of time and conditions, for 14,000 restaurants in the United States, China should have 30,000 restaurants.
Clearly, she is confident about the future of the Golden Arches.
However, opening a branch is not a hen laying eggs, and it is quite difficult to exceed 10,000 stores within five years.
According to the data, the current number of Golden Arches stores in China has reached about 5,400, and there are still five years to 2028, and about 1,000 branches will be opened every year.
If you spread it out to a day, you have to open 2-3 branches, and it takes about 10 hours to open a new Golden Arches.
Such a frequent frequency of store openings is obviously backed by the strong performance of the brand, although the performance of Golden Arches continues to climb, but to achieve the five-year plan, it is obviously not enough.
Therefore, I personally feel that raising prices and harvesting the wallets of another wave of Maimen believers has become a common trick for Golden Arches to increase its performance.
On the other hand, the Golden Arches itself is also burdened with a certain amount of performance pressure.
As mentioned earlier, in 2017, CITIC shares and CITIC Capital formed a group, and the Carlyle Group won 161Acquired McDonald's operations in Chinese mainland and Hong Kong for HK$4.1 billion, with CITIC Consortium holding 52%, Carlyle Group holding 28% and McDonald's Global holding 20%.
This shareholding ratio has changed recently: on November 20, McDonald's Global and The Carlyle Group announced that McDonald's Global has acquired Carlyle's minority stake in McDonald's companies.
After the acquisition, McDonald's Global will increase its stake from 20%** to 48%.
So why does McDonald's Global want to buy back its shares, isn't it just optimistic about Golden Arches and wants to make more.
Therefore, some experts said that McDonald's chose to raise prices at this time, mainly to serve McDonald's global performance.
Of course, the expert also said that this price increase will have little impact on sales, but believe it or not is up to you:
In today's world where various burger restaurants are flourishing at home and abroad, it seems that it is not difficult for consumers to choose other brands that are more cost-effective.
For a long time, McDonald's McMen believers have always been known for their "loyalty", and they are closely around McDonald's, which is also the confidence that McDonald's dares to raise prices for three consecutive years.
But if McDonald's continues to rise, how many friends will choose to eat McDonald's, which has to be a big question mark.
McDonald's from the initial cancellation of color strips, to the gradual simplification and even taste of the production process of its signature products, has made many people begin to complain: the McWheat they are familiar with seems to have faded away.
Even the crispy hash browns, which have been helping McDonald's promote and selflessly share McDonald's many preferential activities, have also been held legally responsible by McDonald's because of the post of price increase:
Don't chill the hearts of all the fans, until it's all over in the end, I remember how I played a good hand of cards back then.