McDonald’s is an economic juggernaut. Since its inception in the 1940s, the golden arches have dominated the fast food market globally, becoming a beacon of success.
Global giant McDonald’s has recorded its first drop in sales in nearly four years, as customers cut back on spending amid a cost-of-living crunch.
Global consultant Mitchell Taylor sheds light on what this means for our global economy:
It’s not the only one – recently US burger chain Carl’s Junior, which had ambitions to open hundreds of outlets across Australia, collapsed into voluntary administration.
Mitchell Taylor is a partner at Simon-Kucher, a global strategy consulting firm focusing on growth strategy, marketing, pricing, and sales.
“You’re effectively paying double today what you used to pay for say a Big Mac meal in the US,” Taylor said.
He said that over the last few years, there has been almost a 100 per cent cost increase from food chains like McDonalds in the US.
“It’s not just inflation for us as consumers, but it’s also inflation for companies. So all of their raw materials, i.e. chicken, meat, burgers, soda”.
“For global behemoths like Burger King, McDonald’s, KFC, this is a storm they can weather,” he said.
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