My analysis of the latest ONS data clearly shows that a 10% menu price increase generates just a 3.7% increase in expenditure. To put this into perspective, let’s take a look at McDonald’s. The price of a Big Mac meal in the US has risen by 27% since 2019, faster than overall consumer inflation at only 22%. In Q2, McDonald’s reported that, despite the above overall inflation increase in the Big Mac meal, global sales fell -1%. So, an above inflation price increase on McDonald’s flagship product was linked to an overall decline in sales.
Read more in my Weekly Briefing Report
In the numbers, I consider the value of tipping across the world and its correlation to great service, followed by a round-up of this week’s news.
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