In early September, the fast food chain increased the price of its most popular meal in Israel, McRoyal, from NIS 39.90 (about $10.25) to NIS 41.90 ($10.75) – a 5% hike. The prices of about 50% of the items on the chain's menu were raised by an average 2%.
The prices of all types of salads were also raised from NIS 39.90 to NIS 41.90, and fries and soft drinks now cost 4% more. Children's meal prices were increased by 7.8% recently.
McDonald's ice cream prices increased by 8-11%, excluding the vanilla ice cream cone which is still sold for NIS 3.90 (99 cents). The price of a McCafé cappuccino has also remained unchanged: NIS 4.90 ($1.25).
When asked about the price hikes, one of the chain workers explained: "Raw materials are more expensive, that's why the prices on the menu have been raised."
Big Mac price reduced 5 months ago
Just five months ago, McDonald's Israel reduced the price of a Big Mac meal by almost 15%, from NIS 34.9 (8.90) to NIS 29.90 ($7.60).
The chain claimed at the time that the new Big Mac price was similar to the product's price in Paris and lower than its price in Brussels (NIS 35.9) and Oslo (NIS 52.4). It is still, however, higher than the price in London (NIS 29.11) and New York (NIS 27).
Yet McRoyal is the most popular meal in Israel rather than Big Mac.
McDonald's Israel said in response, "McDonald's Israel was forced to increase the prices of some its products for the first time since 2011. The products that have become more expensive are the mid-priced ones. However, four categories have kept their current price.
"The price hike stems from the VAT increase, the rise in the US dollar exchange rate, the rise in the price of raw materials and minimum wage. The average hike is actually 1.5-2%, which in practice is an increase of just 1.5% beyond the VAT increase."