McDonald's is to increase the price of its cheeseburger by 20 per cent in Britain, as the cost-of-living crisis squeezes the country.
The cheeseburger's price will rise to £1.19 ($1.43) from 99p — the first price increase for the popular item in 14 years, as the burger chain responds to soaring inflation.
McDonald's will also increase prices by 10p to 20p for other items that have been hit by rising costs, the burger chain's UK chief said on Tuesday.
Inflation in the UK has soared in the past year to about 9 per cent and each month new highs are achieved. Overall UK shop price annual inflation accelerated to 4.4 per cent in July, up from 3.1 per cent in June.
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Reckitt, the maker of Dettol and Nurofen painkillers, said it raised its prices by 9.7 per cent in the second quarter and yet volumes still grew by 2.2 per cent, and said it expects inflation on cost of goods sold to remain in the high teens for the full year.
Unilever, the owner of brands including Marmite, Ben & Jerry’s, Domestos and Dove, yesterday announced it had raised its prices by 11.2 per cent in the last quarter and would pass on more cost increases throughout the year.
McDonald’s UK & Ireland chief executive Alistair Macrow said the increases are needed to help the business cope “through incredibly challenging times”.
“Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation,” he said in an email to customers. “At times like this, we know that providing great value is important.
“Since we opened in the UK in 1974, we have committed to offering great tasting food at affordable prices, and that commitment will not change.
“But, today’s pressures mean, like many, we are having to make some tough choices about our prices.”
The increase, which will take the cheeseburger above the psychologically important price point of £1, comes as British consumer price inflation hovers around 40-year highs and is forecast to top 11 per cent in October.
Mr Macrow said the increases had been delayed for as long as possible, and that the company was still committed to keeping prices affordable.
The restaurant chain, which has its headquarters in Chicago and runs more than 36,000 restaurants in more than 100 countries, raised US prices by 6 per cent last year, in line with increases at other consumer-focused companies that are facing higher inflation amid strong post-pandemic demand and supply chain disruption.
The British Retail Consortium said on Wednesday that shops and supermarkets had increased prices by 4.4 per cent in the 12 months to July, the largest rise since these records began in 2005.
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
The biog
Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
UAE currency: the story behind the money in your pockets
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Company%20profile
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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