McDonald’s Corp. said it raised prices of some food items sold at its China outlets 7 to 15 cents per item effective Wednesday because of higher costs, which come amid growing concerns about spiralling inflation.
The increase “is because of higher raw material prices and we’ve adjusted our prices accordingly,” said Sophia Luan, vice president of corporate affairs and communications at McDonald’s China.
However, McDonald’s will continue to sell its “Value Lunch” set meal at 15 yuan, or about $2.25 each, and its “Value Breakfast” set meal at 6 yuan, or 90 cents, each.
McDonald’s last increased prices on food items at the end of July, said an official who declined to be named.
McDonald’s is raising the prices of nine items, including chicken McNuggets, pies, and ice cream, by CNY0.50 each, the official said, adding that prices of selected items will rise by up to CNY1 each.
The fast-food company, which opened its first restaurant in mainland China in Shenzhen in 1990, has more than 1,100 stores in mainland China and plans to open 150-175 restaurants this year.
China’s consumer price inflation hit 4.4% in October, its highest level in two years, prompting policy makers to raise inflation concerns and sparking widespread expectations of further government measures to contain rising prices.
Yum! Brands Inc. (YUM), which operates the KFC and Pizza Hut chains, hasn’t increased prices for items sold at their restaurants, according to a report from the state-controlled Xinhua News Agency.
