4 ms·
Presumably if the meat packers also raise wages to keep up with inflation, they will have to charge McDonald’s higher prices for patties. Similarly for lettuce
by codekansas 5y ago
Presumably if the meat packers also raise wages to keep up with inflation, they will have to charge McDonald’s higher prices for patties. Similarly for lettuce growers, beverage bottlers, etc. All these would put small amounts of pressure on the price of a burger. If the ultimate price ends up going from 2$ to 3$, suddenly the 10$ to 15$ wage hike doesn’t mean anything (except for people who didn’t get the wage hike in the first place).
- curiousllama 5y agoAh, so it's necessarily a compounding effect across the supply chain, then? E.g. assuming 2.5% price increases: energy costs are 1.025x as expensive > fertilizer is now (1.025^2)x as expensive > crops are (1.025^3)x > beef is ^4 > patties ^5 > so now McDs pays 1.025^5 = 13% more on beef, pushing prices up >13% of their avg previous beef cost. The argument is that it could easily get above 50% given cycles in the economy. Ok, makes sense - thanks
- cwkoss 5y agoHave you been to fast food recently? It feels like prices have tripled over the past decade, outpacing reported inflation numbers significantly. In Seattle: A mcdonalds medium fry is $4.12. A taco bell bean burrito is $3.11 A burger king whopper meal is $12.39
- rovolo 5y agoTripled sounds like a lot, so I trawled through some old pictures of the BK menu. I think the NJ price from 2011 is probably the closest to Seattle (price varies by location), so the whopper meal price is ~1.66x. Inflation is ~1.27x Inflation: https://fred.stlouisfed.org/series/CPIAUCSL https://fred.stlouisfed.org/series/CPIAUCSL ---- Seattle (2022) Burger: $6.59; meal S: $9.79; M: $10.78; L: $11.28; https://www.bk.com/menu/picker-picker_5520 https://www.bk.com/menu/picker-picker_5520 Utah (2018) Burger: $4.29; meal S: $6.19; M: $6.78; L: $7.18; https://www.slcmenu.com/2018/03/26/burger-king-menu-prices-info/ https://www.slcmenu.com/2018/03/26/burger-king-menu-prices-i... California (2018) Burger: $5.??; meal S: $7.??; https://foursquare.com/v/burger-king/4c48d1376594be9ae8533e24?openPhotoId=5a98c368c58ed74fd523cfaa https://foursquare.com/v/burger-king/4c48d1376594be9ae8533e2... Seattle (2017) Burger: $5.29; meal S: $7.29; M: ???; L: $7.98; https://www.yelp.com/biz_photos/burger-king-seattle-7?select=rUVH7fPIkt_ckzvx8FFoCQ https://www.yelp.com/biz_photos/burger-king-seattle-7?select... Maryland (2017) Burger: $4.??; meal S: $6.??; M: ???; L: $7.???; https://www.tripadvisor.com/LocationPhotoDirectLink-g41094-d5030288-i239870508-Burger_King-Crofton_Maryland.html https://www.tripadvisor.com/LocationPhotoDirectLink-g41094-d... Chicago (2012) Burger: ???; meal S: $5.??; M: ???; L: $6.??; https://foursquare.com/v/burger-king/4acfd01af964a52034d620e3?openPhotoId=4fdcd5b5e4b0598b20ca59c8 https://foursquare.com/v/burger-king/4acfd01af964a52034d620e... NYC (2012) Burger: $4.??; meal S: $6.??; M: ????; L: $7.??; https://foursquare.com/v/burger-king/4d4df8edea2760fc7833642d?openPhotoId=506b183de4b05fc963035d5b https://foursquare.com/v/burger-king/4d4df8edea2760fc7833642... Newark NJ (2011) Burger: ???; meal S: $5.89; M: $6.39; L: $6.79; https://foursquare.com/v/burger-king/4b86b7a8f964a5205d9831e3?openPhotoId=4dd5be6240a39dd5c93c5f2e https://foursquare.com/v/burger-king/4b86b7a8f964a5205d9831e... Georgia (2010) Burger: ???; meal S: $4.49; M: $4.89; L: $5.29; http://milledgevillegeorgia.blogspot.com/2010/05/burger-king-restaurant-milledgeville.html http://milledgevillegeorgia.blogspot.com/2010/05/burger-king... Virginia (2009) Burger: ???; meal S: $4.49; M: $4.89; L: $5.29; https://www.flickr.com/photos/ryanrules/3430593700 https://www.flickr.com/photos/ryanrules/3430593700