McDonald’s is significantly hiking menu prices this year in order to keep pace with rising wages for employees and the costs associated with America’s labor shortage and supply chain crises, according to the Wall Street Journal.
According to TheBlaze, The fast-food mega-chain said it’s struggling to recruit enough employees to quickly serve customers and keep restaurants fully open, despite offering higher pay to workers.
Executives reportedly told the Journal they have raised menu prices in the U.S. by approximately 6% in 2021 in comparison to last year and plan to keep prices elevated for at least the remainder of the year. “That’s because in McDonald’s U.S. restaurants, wages this year are up at least 10% as of now and supply costs for things such as food and paper are anticipated to increase 4%,”
TheHill reported that the news of McDonald’s increased menu prices comes as the U.S. battles a supply chain crisis and labor shortage that is disrupting a variety of industries. Given the rollout and effectiveness of the COVID-19 vaccines married with federal aid during the pandemic, demand is outstripping supply.
Some port closures, a lack of workers in places like trucking and other supply chain issues have contributed to a rise in prices for goods. Earlier this month, the White House announced that the Port of Los Angeles and several companies like FedEx would be working around the clock to alleviate some of the supply chain disruptions.
