McDonald’s raises Hong Kong prices by 2 per cent, as expert warns more increases from chain may follow this year
Rising rents and costs of raw materials cited
McDonald’s raised prices at its Hong Kong stores by 2 per cent on Tuesday amid rising costs, in what an industry expert said was a prelude to more of such moves from the world’s largest fast-food chain.
The restaurant line increased its prices in the city by HK$0.60 to HK$1.50 on menu offerings, which include extra-value breakfasts, extra-value meals, happy meals, and some individual food items and drinks.
Rising operating costs from increased rents and higher ingredient prices prompted the move, according to a statement from the company.
What can you eat for HK$15? Data shows more than 70,000 Hong Kong households fall below baseline
“McDonald’s Hong Kong understands the pressure on citizens from inflation, and did its best to limit the impact on food prices when considering price adjustment,” the company said.
The price rise was relatively milder this year compared with the past two years – in January and December last year, the chain raised prices by 2.3 to 2.5 per cent.
However, Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said there would be more to come from McDonald’s.
“Considering the rise in rents and wages, its overall operating costs should rise more than 2 per cent for the past year,” Wong said. “There is a possibility of gradual price increases in 2018.”