McDonald’s issues grim price rise warning as Iran war rages on | UK | News
Another increase in costs is expected as fast food giant McDonald’s has released an update on prices. The boss of the burger shop’s UK operations has said price rises in the UK are “on the cards” as the war in Iran raises the prices of a range of goods around the world. The war in the Middle East has been ongoing since the US and Israel first struck Iran in February; Prolonged conflict raises fears about rising fuel, food and energy costs.
Motorists have already seen petrol prices rise, with experts previously warning that the prices of many supermarket products could rise due to the conflict. McDonald’s boss has confirmed that the restaurant chain’s Meal Deal and Savings menu items will remain the same, but prices of other items may rise as the battle continues. Lauren Shultz, who took over the UK and Ireland arm last September, said: Mirror Businesses need to figure out where to eliminate the cost pressure that arises as a result of conflict.
“Like any business, we have to measure cost pressures against where prices need to go,” he said. “There is a slight price increase predicted.”
He explained that the fast food giant is still in “negotiations” on this issue and a price increase has not been decided yet.
Speaking separately on BBC Radio 4’s Today programme, he explained: “We have been operating in an unstable, inflationary industry for many years. But we monitor where inflation goes as it fluctuates. “We have long-standing, strong relationships with our suppliers that give us a lot of cost certainty.
“We’ll probably see some price increases with some discipline. That’s where customers are willing to pay a little more.”
In January, McDonald’s reportedly increased prices on a number of menu items, including its popular single brown harvest, which costs almost £2 in some areas.
Amid the war with no end date in sight, industry body the Food and Drink Federation has said grocery inflation could jump to 9% or 10% by Christmas even if the conflict is resolved soon. FDF chief executive Karen Betts explained: “Energy is embedded in every part of the food system, from agriculture to the energy used in greenhouses to the energy used by producers to make and cool food and transport it to supermarkets.”
Investor and Chief Executive Jim Mellon said: “Global conflicts combined with climate change are causing food shortages, supply chain issues and price rises in the UK and beyond.” agricultural sciencehe previously told the Daily Express.
