BUSINESS

consumers are already paying the full brunt of inflation

published Tuesday 26 April 2022 at 1:30 pm

Due to the increase in the price of sunflower oil, a direct consequence of the war in Ukraine, but also of packaging and other raw materials, fast food restaurants are forced to sell their products at higher prices.

Soon a McDo burger for the price of a steak? If the observation is still not so alarming, the increase in prices in big brands and independent fast food restaurants is already being felt on the wallet, it indicates BFM TV. In question, the inflation of the cost of frying oil, in particular essential for cooking the fries that generally accompany skewers and hamburgers, but also that of the packaging, which wraps the whole.

This is the case with some kebab restaurants in the 18th arrondissement of Paris. One of them informs their customers by clearly showing their price increase, the news channel reports. In the case of sunflower oil, which is difficult to find in supermarkets today due to the conflict between Ukraine and Russia, its price per ton has increased by almost 500 euros since February, exceeding the current 1000 euros.

A threshold not to be exceeded

While small restaurant chains and independents are heavily hit, this is also true of the industry giants, McDonald’s and Burger King. BFM TV indicates that the menus in the yellow “M” cartel in the United States have increased 2.7% since February. To the competitor, home of the famous “Whopper”, the same observation, according to José Cil, CEO of Restaurant Brand International: “We anticipate further price hikes in 2022 and are working closely with affiliates to make the best decision for customers.”.

In France too, Burger King faces this problem. Contacted by BFM TVthe group sector has specified that, despite the increase in prices, it is trying to maintain “the prices of some iconic products at national level such as the King Junior children’s menu which is 4 euros or the King Deal menu which is 5 euros”. A more complicated strategy to implement in franchised restaurants, which represent 85% of the territory and which have total control over prices. Bernard Boutboul, president of Gira Conseil, also believes that the threshold beyond which sales will be impacted is not far off.

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