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Comment by taylodl | Hacker News Reader

The biggest problem McDonald's has been facing is inflation. McDonald's whole business model was predicated on reasonably good food that was delivered fast and cheap. Now the cheap part is off the table, and for a couple of bucks more you can get much better food. To make matters worse, McDonald's import a lot of their beef, and those costs have been affected by the tariffs. That's the vice McDonald's is in.

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I feel like this is 100% it. We used to go to McDonald's pretty often as a cheap but tasty treat. Being able to grab a few burgers, orders of fries etc. to feed a whole family for significantly less than it would cost to go out to eat at a "real" restaurant.

Now it's go out and pay $15 per person at McDonald's for crappy, inconsistent food that doesn't even taste that good anymore and eat it in a dirty McDonald's location with crazy homeless people making a scene not 10 feet away from you. Or you pay $17-18 per person to go get a big, juicy, well-made burger from a proper bar and grill with clean seating and family atmosphere. It just makes absolutely no sense to go to McDonald's unless you're on a road trip at weird hours of the night where nothing else within miles of you is open. Taco Bell, KFC and others have had similar problems for us.

We've gone from eating fast food two or three times a month to eating it maybe once or twice a year after the pandemic.

McDonald's doesn't cost $15 per head.

Right now when I open the app:

- One of the 'app exclusive deals' is 35% off an order over $12

- A Big Mac meal (burger, fries, drink) is $12.97 before that discount

- A double cheeseburger (no fries or drink) is $3.99

You're right, but for someone like me who hate feel hunger just 2 hours after a big mac meal, I must take 2 or 3 simple cheeseburgers + the big mac meal to feel ok until diner. It costs me more than $15. I don't go there anymore by myself unless there is no other options left.

What you are describing is like 1500-2000 calories even if you get a diet soda. At least you'll have to agree that it isn't typical for a person to eat this much in a single meal at mcdonalds.

I don't order from the app, didn't know there were discount there. I probably won't use the app anyways, I think it's ridiculous having to install an app for every fast food place just to get better prices, I'd rather just not go anymore than do that.

And is the meal before/after tax? I distinctly remember last time I was there a few months ago being shocked that the price came out to about $15 per person all getting meals.

I don't think that inflation is at stake here but more probably greed and corporate inefficiency.

Inflation should impact most fast foods or restaurant in a relative same way.

But McDo used to be the cheapest option to eat, now it is often more expensive than going to a lot of other places or chains.

Isn't inflation going to hit their competitors, too? You gotta eat somewhere.

> You gotta eat somewhere.

You can eat at home. This seems more like a sign of the loss of purchasing power among the working poor.

people have always been able to eat at home yet they didn't. Inflation his everybody, not just them or their competitors.

> people have always been able to eat at home yet they didn't.

Sure they did, but they just ate out more frequently before.

> Inflation his everybody, not just them or their competitors.

The primary mechanism is their customers' loss of disposable/discretionary income.

To add to that, due to class reasons, people who previously ate out at higher end fast food are not going to downshift to McDonalds because of class and perceived low quality at McDonalds.

They will probably eat at home more, which allows them to stay in their current class association.

> You can eat at home.

Oftentimes, that's not true for lunch. I thought that was a huge part of McDonald's business: people grabbing a quick and cheap bite to eat for lunch. Followed by soccer moms grabbing a quick dinner or snack for the kids via the drive-thru on the way to practice. Yes, I know you can get better food for just a little bit more, but it's still more money and oftentimes a drive-thru isn't available.

Or maybe these core customers are still going to McDonald's but it's the folks outside of these groups that have fallen off? If you don't need the drive-thru and you have a little more money to spend then you have a lot of options.

> Oftentimes, that's not true for lunch.

Packing leftovers or a sandwich is a thing. It's not convenient, or perhaps as tasty. Might be healthier though.

> It's not convenient

What is more convenient than placing some delicious tuna or egg and a bit of heese between two slices of bread? Surely not driving to McDonalds.

my wife is the competitor and while inflation is hitting her too she can make bigmac for a buck :)

Your wife runs a restaurant?

In our house :)

Inflation has turned me away from eating out; I can't keep up with the relentless and steep price increases while my income hasn't grown much at all in the same time period. Having to pay over $10 for a low-quality combo meal sucks. I only eat out these days in situations when cooking and/or bringing meals with me are not an option, such as when I'm out of town on vacation or business, or when eating out is part of a social event.

Inflation hits us all, but we all do not have to eat highly-processed, chemically -preserved, over-priced fast food. It's still as easy as ever to make a sandwich or a salad and pack it for lunch.

Them and BK's beef comes from South America, where farmers, burn the rain forest down for grazing land and soybean production to feed cattle

Have you seen South America size? There's no need to burn rain forest to raise cattle, this is fake news. South America is the only continent that still has >50% native untouched land and the cleanest power grid.

> There's no need to burn rain forest to raise cattle

There might not be a need, but it's undeniable that they are doing it.

Thank God the Germans and Belgians preserved all their rainforest.

The high prices go even higher when you take delivery app fees and markups into account. People will see the prices in the app and think that's the McD-set price.

I'm ashamed to live among a populace that includes people who pay extra to have McDonalds brought to them by a serf with a smartphone.

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