Here's Why the Cost of McDonald's Food Varies by Location

With the rising cost of fast food hitting consumers in the wallet, you may notice that some McDonald's restaurants charge more for their food than other locations. And we're not talking about the difference between, say, New York City and Los Angeles prices compared to a rural area in the midwest; but a possible difference just a town or neighborhood over.

As it turns out, there's a pretty straightforward reason for this, as former McDonald's corporate chef Mike Haracz explained in a recent video posted to his popular TikTok account, where he regularly divulges tips, tricks, and insider secrets about the leading fast food chain.

Haracz was responding to a user comment that asked how much autonomy franchise owners have over setting menu prices. The user said that they had observed "small, but noticeable differences" in locations in Minnesota's Twin Cities area that have different owners.

"Really, owner-operators are to set their own prices, McDonald's cannot necessarily dictate what the prices are," Haracz clarified. "However, they do recommend, 'This is what we think the price should be.' So, they set up a business case and they say, 'We think it should be this price point because of X-Y-Z factors.'"

@chefmikeharacz

Replying to @Todd Former #McDonalds corporate chef talks about setting prices. #mcdonaldshacks #mcdonaldssecrets #mcdonaldsccsing #mcdonaldschallenge #mcdonaldstiktok #FYP #foodtiktok #foodtok #food #fastfood #fastfoodlife #fastfoodstories #fastfoodreview

♬ original sound - Chef Mike Haracz

"Now, owner-operators set their own price, but they have to factor in rent, employee turnover, minimum wage, and all of those kinds of things so they actually set the prices based on information about the recommendations," he continued, adding that there's a variety of things owners may want to upcharge, such as if they're located in an airport or high-rent area, or if they're just plain "greedy."

"All of those things will change the price of a McDonald's, and that's why if one location is owned by somebody and across the street is a different location, there may be different prices on the food items," Haracz concluded.

This is exactly the reason many franchise owners initially balked and said they would opt out of the $5 Meal Deal that McDonald's launched earlier this year. Yet, despite owner-operator protests, the promotion has proved to be popular for the chain, so much so that the company has extended it through the end of the year.