McDonalds President Apologizes for High Prices (But Not for the Reason You Think)

There's nothing quite as satisfying as a public apology from a major corporation. How many times have you banged your head against your phone in frustration at just getting to talk to a foreign call center script reader with the authority to admit a mistake, much less correct it?

I could tell you the story from last year about how a mistake — possibly fireable — made by a FedEx call center in India accidentally got me through to someone in the U.S. who could get a driver to finally deliver my new laptop, but I'll save that one for a more appropriate time.

Today's story involves global mega-corp McDonald's and President Joe Erlinger's open letter "to our U.S. fans" about the company's price hikes — and especially that notorious $18 Big Mac meal.

"I can tell you that it frustrates and worries me, and many of our franchisees," Erlinger wrote, "when I hear about an $18 Big Mac meal being sold — even if it was at one location in the U.S. out of more than 13,700. More worrying, though, is when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019."

Inflation isn't uniform across the nation, of course. And in some places, like California, lawmakers have added ridiculous laws and regulations, like the $20 minimum fast food wage, that have caused prices to rise faster than in other places. My stretch of Colorado seems to have been particularly hard hit, with a recent drive-thru lunch for four running me just shy of $50.

GlobalData's Neil Saunders isn't buying it. He told the Daily Mail on Wednesday, "The reality is that the price of menu items has become a lot more expensive... That may not be McDonald’s fault but it’s a problem for a meal that’s supposed to be an inexpensive indulgence."

Nevertheless, Erlinger argued that McD's price hikes have been in line with the national inflation rate. 

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"The average price of a Big Mac in the U.S. was $4.39 in 2019. Despite a global pandemic and historic rises in supply chain costs, wages, and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%)."

Ehlinger also wrote that McDonald's franchisees, who own and operate 95% of U.S. locations, "work hard to minimize the impact of price increases on our fans. This includes the everyday prices on our restaurant menu boards to special limited-time offers."

"That’s why prices for many of our menu items have risen less than the rate of inflation – and remain well within the range of other quick service restaurants."

Nevertheless, it's with an apologetic tone that Ehlinger admitted, "It’s clear that we – together with our franchisees – must remain laser-focused on value and affordability."

But here's the kicker, the last line from Ehlinger's open letter: "For the greatest way to unlock all the value we offer, be sure to download and use the McDonald's app."

"Obviously, I can't see deep into his soul and determine his intent," INC's Bill Murphy wrote on Thursday, "but getting you to download and use the McDonald's app seems like the one thing that McDonald's always wants every customer to do in almost every circumstance."

Download the app, get the discounts... and the tracking... and the reminders to buy more meals from McDonald's.

I do appreciate Ehlinger's explanation, his promise to do better, and his apologetic tone. But I'd probably appreciate it even more if it hadn't come with the near-inevitable ad for the app.