In the past few months, all businesses have seen an unprecedented situation where everything was forced to close all at once. One of the most loss bearing sectors has been hospitality and tourism, and fast-food chains like McDonald’s haven’t been spared from the aftermath as well.
Now that everything is slowly opening up, businesses like McDonald’s are coming up with strategies to get customers back in their outlets and get some money coming in like before. For starters, McDonald’s has decided on cutting down the prices of some of its most popular menu items in Britain, with up-to 50p off on them as well.
The decision to reduce prices by the fast-food giant has come after Chancellor Rishi Sunak announced about the reduction of Value Added Tax (VAT) on the hospitality and tourism industry. Earlier, what was 20% on non-alcoholic and food items has now come down to 5%, so consumers can start spending again because of the reduced prices that the chain effect brings in.
As it has come into the news, McDonald’s will be cutting down the prices of some of its most popular bundles and breakfast items, including the Big Mac and the chicken nuggets. These new prices will attract the consumers towards making a purchase, which is the key aim behind the reduction.
For now, McDonald’s has planned explicitly on reducing the price of its Extra value meals by 40p. Similarly, its Happy meals will be down by 30p from the earlier price. More items like the Quarter pound with cheese and the Big Mac will be down by 20p from their old prices.
The breakfast menu is where the maximum reduction in prices will be seen, 50p has been slashed from all the breakfast meals, and even the McMuffins will be down by 30p. Other McDonald’s menu items that are available day around, like the coffee which was earlier priced at 1.39 Euros, has come down to only 99p. Even premium products will see a price reduction from 1.79 Euros to 1.49 Euros.
All these prices are tentative and average of what has come into effect across the UK from 5 a.m. Still, the prices are expected to vary from region to region, depending on the costing of supplies for the final products.
When asked about the recent cutting down of prices, McDonald’s CEO the UK and Ireland, Paul Pomroy says that
“It has been an unprecedented four months. After 45 years serving the UK, at no point did we expect to close every restaurant for any period of time.” He also adds that local men and women run 1350 outlets in the UK, and with their help only, now the businesses have been able to open back up while 80000 employees have gone back to work.Source
According to Pomroy, the package that has been announced by the Chancellor will be the boost that the industry currently needs. He also urged for customer support as employees go back to work, so businesses can recover. Slowly, McDonald’s is heading in the right direction and is now testing dine-in services in four UK outlets.