In response to recent reports and viral social media posts claiming that McDonald's has raised prices beyond the rate of inflation, the fast-food giant's U.S. president, Joe Erlinger, issued an open letter on Wednesday, insisting that these allegations are "inaccurate." While acknowledging the challenges posed by inflationary pressures, Erlinger emphasized the need to address the real facts surrounding the company's pricing strategies.

Erlinger highlighted the impact of various factors, including the ongoing global pandemic, supply chain disruptions, and wage increases, which have influenced the chain's pricing decisions. As Americans face tough choices regarding their spending, Erlinger stated that McDonald's, as a brand that serves nearly 90% of the U.S. population annually, feels a responsibility to provide clarity on the matter.

Contrary to widespread claims, Erlinger clarified that the chain has, on average, increased prices by 40%. He also pointed out that nearly 95% of McDonald's locations in the U.S. are operated by franchisees, who have the authority to set their own prices. This clarification aimed to dispel any perception that the company is directly responsible for price hikes.

However, industry experts have described McDonald's PR approach as unusual. Jerry Sheldon, vice president of technology at market research firm IHL Group, suggested that pushing back against consumers may be perceived as tone-deaf and risk exacerbating the problem. Sheldon also stated that pointing fingers and blaming franchisees for price increases may further erode customer sympathy and loyalty.

Nonetheless, McDonald's remains steadfast in its commitment to navigating the challenges of inflation while providing affordable options to consumers. The open letter represents a concerted effort by the company to address concerns and provide transparency about its pricing strategies during a period of elevated inflation.

As inflation persists and consumer demand diminishes, McDonald's and other restaurant retailers continue to grapple with the ramifications of these dynamics. By actively engaging with the public and dispelling misconceptions, McDonald's hopes to foster understanding and maintain its position as a trusted and affordable dining option for consumers across the country.