McDonald’s has announced it will raise prices across its UK outlets, citing cost pressures linked to the ongoing Iran conflict. Lauren Shultz, who took over as head of the fast-food chain’s UK and Ireland operations in September, told the Mirror that a “slight price increase” is on the cards, though the exact scale and timing remain under review.
Shultz confirmed that the popular Meal Deal and Saver menu items will be unaffected, but other products – including the flagship Big Mac – could become more expensive for millions of British customers. “We have long-standing, strong relationships with our suppliers, who have given us a lot of cost certainty,” she said. “We will likely see some prices go up but in a small, disciplined way.”
The price rise follows a series of increases in January, with a single hash brown now costing nearly £2 in some areas – up from just 89p in 2019. McDonald’s is one of several food firms grappling with higher costs driven by the Iran war, which has sent oil prices soaring and disrupted key shipping routes such as the Strait of Hormuz.
The Food and Drink Federation (FDF) has warned that grocery inflation could jump to 9% or 10% by Christmas, even if the conflict is resolved soon. FDF chief executive Karen Betts noted that energy costs are “embedded in every part of the food system”, from agriculture to manufacturing and transport.
Meanwhile, Allied Bakeries – the maker of Kingsmill bread – is in early talks with retailers about adding a fuel surcharge of less than 5p per loaf to offset soaring energy costs. The levy would be passed on to customers at the shops’ discretion.
