Former McDonald’s chef Mike Haracz has taken to TikTok to shed light on what he describes as the fast-food giant’s abandonment of its value-conscious consumers. Haracz frequently posts McDonald’s tips, hacks, and news—and now he’s calling the company out for their high prices.
In a recent TikTok video, Haracz revealed insights from a McDonald’s earnings call, where the company acknowledged losing lower-income customers to grocery stores due to what Haracz labels as “absurd” pricing, adding to the fast food “shrinkflation” issue. Find all the details below.
@chefmikeharacz Former #McDonalds corporate chef talks about them abandoning the value consumer. #McdonaldsLife #McDonaldsTikTok #McDonaldsMenu #McDonaldsSecret #McDonaldsSecrets #FastFood #FastFoodLife #FastFoodSecrets #FastFoodTikTok #fastfoodmenu #fypシ #BigMac #QuarterPounder #McNuggets #McChicken #DollarMenu original sound – Chef Mike Haracz
McDonald’s prices are getting “absurd”
The days of McDonald’s being a viable option for an affordable meal may be behind us. “McDonald’s is abandoning the value consumer,” Haracz stated in his TikTok. He noted that McDonald’s executives admitted to losing value customers—specifically those earning $45,000 a year or less—to grocery stores, conceding that individuals can replicate McDonald’s menu items at home for a fraction of the cost. (However, it’s worth noting that fast food inflation isn’t the only problem consumers are facing; grocery prices have been rising, too.)
The former chef pointed out that despite a decline in foot traffic, McDonald’s reported profitability, attributing it to continued price hikes. Haracz asserted that while middle and higher-class consumers still frequent McDonald’s, lower-income individuals are increasingly priced out of the fast-food chain’s offerings. He predicted that if McDonald’s were to cater to lower-income customers in the future, they might resort to reducing portion sizes while maintaining high prices, further exacerbating the affordability issue.
“So lower income folk, McDonald’s is not the place you want to go for affordable food options anymore,” Haracz said. “They said maybe in the future they’ll try to target lower income folks. The issue is going to be they’ll probably make portion sizes that are ridiculous. You’re still going to be paying a lot of money for what you get.”
Haracz's TikTok sparked a wave of comments echoing frustrations over McDonald's pricing. Users shared anecdotes of opting for alternative dining options or cooking at home due to the lack of value at McDonald's.
One user, echoing Haracz's sentiments, commented, "There’s a nice steakhouse next door to the McDonalds in my town. I can eat a quality lunch there for the same price as McDonalds."
Another frustrated customer remarked, "It costs $25 for two 'value' meals now. I can pay that at a diner and get better quality."
A third user joked: "I’d like to thank McD’s. Due to price hikes, we learned how easy and cheap it is to cook for ourselves."
Indeed, cooking at home is likely the best way to go. One user pointed out: "$5 for 2 hash browns. a pack of 24 at Aldi is cheaper." (Shoutout to those great deals at Aldi!)
The outcry over McDonald's pricing is nothing new. Last November, a viral TikTok by Idaho resident @TopherOlive sparked similar reactions. In the video, @TopherOlive expressed disbelief at being charged $16 for a Big Mac meal, comprising a burger, large fries, and a large drink.
So, I get there’s a labor shortage, I get there’s wage increases and a number of other things, but $16?" he said. "$16 for a burger, a large fry and a drink? It’s just crazy!"
McDonald's prices vary by location, with some states offering more affordable options than others. In some states, a Big Mac Meal could cost you as little as $10. Despite this variability, instances of shockingly high prices persist.
McDonald's Chief Financial Officer Ian Borden an earnings call last year that menu items' prices would have increased by 10% by year-end, reflecting the company's strategy to offset rising costs. This approach has contributed to McDonald's financial success, as evidenced by a significant increase in net income from $1.9 billion to $2.3 billion in 2022, largely driven by menu price hikes.
All in all, the virality of these TikToks underscore a growing sentiment among consumers: McDonald's is no longer the go-to destination for affordable fast food. As the chain prioritizes profitability over value, customers are increasingly seeking alternatives or turning to home-cooked meals as a more cost-effective option. Unless McDonald's addresses these concerns and revisits its pricing strategy, it risks alienating a significant portion of its customer base.
But what do you think? Are those tasty burgers still worth the price, or will you be grilling some up at home? Let us know in the comments!
