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

On Monday, the company that runs McDonald’s restaurants (NYSE: MCD) in Japan shared that it will raise prices at 184 branches in city centers. These branches make up about 6% of their total of 3,000 stores. The reason behind the price increase is to help cover the higher expenses of rent and labor costs that the company is facing.

Until now, there have been 40 stores in various city centers and special locations like airports and motorway service stations that have been operating under the pricing framework referred to as “city centre pricing.”

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

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

Since March 2022, McDonald’s, the biggest fast-food chain in Japan, has been at the forefront by implementing three price hikes across all of its outlets, with the most recent increase occurring in January.

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