McDonald’s $1 Drinks Not Inflation-Proof: Some Franchises Are Raising Prices

The long-running promotion of any size soda for a dollar at America’s favorite fast food restaurant may be coming to an end.

What happened: As restaurateurs grapple with rising inflation and supply chain constraints, some McDonald’s Corporation MCD franchisees vote to increase the price of drinks in their establishments.

According to the Wall Street Journal, McDonald’s franchises from Illinois to Tennessee have raised drink prices between 39% and 69%, and more franchises are expected to join them soon.

The Journal reports that 16 of McDonald’s 56 U.S. restaurant co-ops voted to promote the company’s economy menu over dollar drinks, which allowed them to walk away from the promotion.

Why is this important: McDonald’s restaurant franchisees retain full control over their prices and rely on Deloitte to make price recommendations based on local spending. Prices can also be determined by a restaurant’s desire to attract more customers through meal deals.

Also read: Labor market tight but layoffs rise as Tesla, Coinbase, Netflix and others cut staff

While the cost of McDonald’s drinks is only just starting to rise in the United States, a Canadian TikTok user noticed a price increase as early as May.

@seaairuhg $1 for a small?? #mcdonalds #canada #fyp ♬ original sound – sierra

“That depressing moment when you realize the days of spending dollars are finally being ruined by inflation,” reads the text overlaid on the video.

According to the McDonald’s website, drinks still fall under the Dollar menu, but a disclaimer reads, “Prices and participation may vary. Cannot be combined with any other offer or meal combo.

Price Action: Shares of McDonald’s climbed 2.46% on Friday to close at $252.96, according to data from Benzinga Pro.

Photo: Courtesy of Eric Lewis on Flickr

About Walter Bartholomew

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