McDonald’s issues grim price rise warning as Iran war rages on

Yet another thing is set to increase in cost as fast food giant McDonald’s issues an update on prices. The boss of the burger joint’s UK operations said that price increases in Britain were “on the cards” as the war in Iran drives up prices of various goods across the globe. The war in the Middle East has been going on since the US and Israel first struck Iran in February, with the prolonged conflict leading to fears over increased costs for fuel, groceries and energy.

Experts had previously warned of several supermarket items potentially going up in price due to the conflict, while drivers have already seen petrol prices increase. The McDonald’s boss confirmed the restaurant chain’s Meal Deal and Saver menu items will remain the same, but other items could go up in price as the war continues. Lauren Shultz, who took over the UK and Ireland arm last September, explained to the Mirror that businesses have to figure out where to find relief for cost pressures as a result of the conflict.

“Like any business, we have to measure cost pressures with where prices need to go,” she said. “There is a predicted slight price increase.”

She revealed that the fast food giant is still in “deliberations” about this, and that no price increases have been decided yet.

Speaking separately on BBC Radio 4’s Today programme, she explained: “We have been operating in a volatile, inflationary industry for years now. With the volatility, though, we are watching where inflation goes. We have long-standing, strong relationships with our suppliers, who have given us a lot of cost certainty.

“We will likely to see some prices go up but in a small disciplined way. It is where customers are willing to pay a little bit more.”

In January, McDonald’s reportedly upped the prices of a number of menu items, including its popular single hash brown, which now costs almost £2 in some areas.

Amid the war, which has no end date in sight, industry body the Food and Drink Federation said that grocery inflation could jump to 9% or 10% by Christmas, even if the conflict is resolved soon. Karen Betts, FDF chief executive, explained: “Energy is embedded in every part of the food system, from agriculture through to the energy used in greenhouses, manufacturers to make food and chill it, and to move it onto supermarkets and the energy they use.”

“Global conflicts, along with climate change, are causing food shortages, supply chain issues and price spikes in the UK and beyond,” Jim Mellon, an investor and Chief Executive of Agronomics, previously told the Daily Express.