Cost of living pressures strikes at McDonald's restaurants

The cost of single items such as a Big Mac, Happy Meal and a Quarter Pounder have all risen in price by between 75 cents and $1.15 since January 2022.

READ MORE: Community's tears, sadness and gratitude after Evandale church hall blaze

Comparing prices at Launceston's Invermay restaurant, a Happy Meal with six chicken nuggets on UberEats now sets a family back $10.55 compared with $9.40.

Meanwhile, a small cappuccino has only been bumped up by 10 cents.

The sharing boxes remain the best value, with the McFavourites box and McFamily box remaining at the same price at $47.95 and $57.95, respectively.

In a statement, McDonald's Australia said individual businesses prices were set at a restaurant level.

"Like all businesses, we are operating in a higher-cost environment, which does impact the cost of running great restaurants in communities across Australia," the statement said.

"We will always work hard to provide our customers with great value."

More broadly, Tasmanian Hospitality Association chief executive Steve Old said venues across the state balanced covering costs with setting prices to keep customers coming through the door.

"If McDonalds, where the minimum wage is significantly lower than the hospitality sector, are increasing prices, just imagine how hard it is for our businesses," Mr Old said.

He listed the economic climate with soaring energy prices, cost of living pressures, recent rises and changes to wages and superannuation as reasons keeping prices down was "increasingly more difficult".

READ MORE: Teenager dies after three-car crash during heavy rainstorm at Latrobe

Mr Old said many hospitality venues also had to account for the cost of the twice-yearly beer tax imposed by the federal government.

"... but there simply becomes a tipping point where the increases have to be passed on to the consumer," he said.

Meanwhile, Griffith University business hub director Graeme Hughes confirmed that McDonalds menu items were facing criticism for increasing prices nationwide.

"The big squeeze on middle Australia continues," Mr Hughes said.

"... leading to customer frustration at a time of significant increases in everyday cost of living."

READ MORE: Tasmania's green road resurfacing gets a new layer with a bitumen blend plant

He said the company attributed the price increases to rising production costs and was operating in a higher-cost environment.

"Customers, many of which are middle-income families, have expressed dissatisfaction with the higher prices, considering them excessive for the quality and portion sizes offered," he said.

Why not have your say? Write a letter to the editor here:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: