McDonald’s is putting prices up in outer suburbs because they think consumers there are more likely to accept higher charges.
The cost of menu items was previously based on restaurant overheads but the multinational fast-food chain is now using socio-economic factors as its key criteria for determining price under a new “demand-based pricing” scheme.
A confidential corporate document obtained by The Advertiser reveals that McDonald’s Australia has identified an “opportunity to introduce more aggressive price increases” at dozens of stores across NSW, including Campbelltown, Doonside, Engadine, Epping, Fairfield, Gosford, Greenacre, Hurlstone Park and Liverpool.
A McDonald’s franchisee said the biggest price hikes were concentrated in lower income areas around Australia.
“If you take the time to analyse the different restaurants, in general the poorer suburbs will pay more,” the franchisee said.
“This is so very, very wrong.”
Melbourne’s CBD restaurants on Collins, Elizabeth, Swanston and Bourke streets will be among those to charge the highest prices.
Photo: News Limited.