Two tactics for communicating about inflation and price increases

McDonald’s used to have a $1 Menu. When you felt hungry, you could roll up to the Golden Arches and get a small sandwich or a big drink for a buck.

Those days are long gone.

McDonald’s is far from the only business struggling with the skyrocketing costs of, well, everything. From food to labor to rent and utilities, the basic laws of economics are forcing prices upward.

But customers are growing weary of seeing prices rise on once affordable indulgences. And they’re taking to social media to share their displeasure, such as one infamous $18 Big Mac deal, available at a rest stop in a pricy part of Connecticut.

All of this has led some consumer-facing organizations to release unusually detailed statements explaining cost hikes aimed at empathizing with the pain of cash-strapped consumers.

McDonald’s and Chipotle have been navigating these waters with public communications to customers and shareholders.

McDonald’s: Clap back

In a letter posted to McDonald’s website and elsewhere, McDonald’s USA President Joe Erlinger connected McDonald’s value proposition to his own childhood, before bluntly striking back against criticism of their pricing strategy.

“Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates. This is inaccurate. And for a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available.

I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold – even if it was at one location in the U.S. out of more than 13,700. More worrying, though, is when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019.”

In addition to the letter from Erlinger, the posting included a socially shareable table comparing 2019 prices to 2024 prices, showing actual increases ranging from 20-28%.

Shea Carter, VP Social + Influencer at Social Element, said that McDonald’s response to social media pushback.

“(Memes) speak to broader customer sentiment and we shouldn’t downplay them,” Carter said. “The reality is that consumers are sharing their reactions to everything brands are doing on social —both the good and the bad — and executives can’t afford to dismiss them.”

Carter likened it to having a focus group at your fingertips every single day that, if used right,  can be a powerful tool.

“It’s also a reminder of just how important of a role social scenario planning plays in brand protection,” Carter added. “Discounting social’s impact on a brand’s health can result in direct impact to the bottom line.”

But McDonald’s is going beyond memes and also working to lower prices once again with a “Summer of Value” anchored by the introduction of a limited-time $5 meal deal.

“This summer, we have good news for fans across the country – McDonald’s is here to help your dollar go further with more deals and even more ways to save,” the press release reads. “From the $5 Meal Deal to ‘Free Fries Friday’ to local app exclusives, with deals this good, everyone’s got McDonald’s money to make the most of the season.”

This statement shows that in addition to hitting back at what it sees as misinformation online, McDonald’s is still responding to the pain point and reorienting its messaging around this clear customer need.

Indeed, the same messages rang loud and clear in McDonald’s Q1 earnings call.

“McDonald’s has a long history of being the go-to destination for value and it’s imperative that we continue to keep affordability at the forefront for our customers,” said President and CEO Chris Kempczinski during that earnings call. “We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry.”

Everything McDonald’s is saying and doing is pulling in the same direction: cost, cost, cost. Come back, and we’ll be cheaper again.

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