Is McDonalds Getting Too Expensive?

I'll be comparing McDonald's flagship burger "The Big Mac" to Hungry Jacks's "The Whopper."

My local Big Mac costs $4.75 while the HJ's whopper would cost $5.95 for two burgers with the following coupon http://files.ozbargain.com.au/upload/110465/19136/scn_0001.p…. Some may argue that both burgers are near cost without the help of coupons, HJ's sends out their coupons by letter very often and many times you can find these coupons on the front counter.

For the cost of a small big mac meal, that will set me back a bit more than $8 dollars, I could go into to a cafe to buy a gourmet burger bundled with salad and a drink for only 2 dollars more.

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Comments

  • +24

    It obviously depends on the city, because you would NEVER find a gourmet burger bundled with a salad and a drink for anywhere near $10 in Perth!

    • +4

      So true… Have you been to that hot dog place in Freo? $16 for a "gourmet" hot dog and drink (similar to the ones sold at the front of Bunnings most weekends).

      • +2

        Costco have $2 for a hot dog and drink with condiments and free re-fills

  • what separates a gourmet burger from a regular one?

    fancy pants bun or real meat patty?

    • +2

      Fresh bun, fresh and plentiful salad, fancy sauce, chicken breast rather than processed crap.

      Ie. McDondalds vs Grill'd

      • +1

        Grill'd patties are pretty bad though, full of spices that overpower the meat flavour. They don't taste any more real than Maccas. And when you get barely any change from a $20, what's the point? Go to a cafe or a pub and get a burger for $12-$15, and it won't be mass produced.

        • +4

          Grill'd destroys anything you'll find at a pub or cafe, unless your getting their basic beef burger or something! 9 times out of 10 Grill'd even beats restaurants where you pay >$40 a person from my experience.

          Btw, I avoid beef so can't really comment on those patties.

        • Grilld is awesome. Vege burgers were excellent but bloody expensive.I am from Perth as well. I will be really surprised to find any gourmet burger which sells for 10$.

        • have you tried Butty's? https://www.facebook.com/buttysfoodtruck best burger I've ever had for $10 :)

        • +3

          Looks like I am one of the few on your side, I've tried a few things at Grill'd and have never been impressed (keep going back because everyone tells me how great they taste). The chips aren't bad but the burgers are dry and just bad all round. They taste too "healthy" perhaps? Haha.

          Meanwhile, half a dozen pubs near us do steak, chips & salad for the same price (not bad cuts of meat either).

          More my style - there is a burger place 20mins up the road from me that will apparently replace your burger bun with Krispy Kreme donuts, haven't made the trip yet but it's definitely on my to-do list.

        • +2

          If you want a donut as a bun, Grilld isn't for you.

        • I was a huge fan of grill'd, esp when I lived in Bris, but my local one realllly sucks now - something changed like 4-5 months ago, the buns got worse, they dont seem to take much gear in not overcooking the patty and etc. Also in Canberra I don't think they can sell booze.

          Also for some reason every time I go in there, there is this one girl who takes my order and I ask for take away, then they try to give it to me on a plate and I say I asked for take away and she acts real offended. Not entirely sure if she is doing it on purpose, but it has happened 3 times now, which is just bizzare.

          We do have brod burger here though, which is great, just a pain to line up for and not much room in the actual place because of how packed it gets. Maybe the new Grill'd in the city will be better too, idk, I'm just pretty put off going there now.

        • Try the Baa Baa burger on Traditional bun. I'm almost never disappointed with it. Grill'd is pretty consistant ^_^. I actually think they're getting better as the years go on and I'm pretty fussy about food.

    • -1

      The difference between a "gourmet" burger and a regular burger is real meat vs pink slime.

  • +8

    I was saying just the other day how I think McFlurry prices are over-the-top now. What is it, $4.25 these days?! I can still recall the days of $2.75 when I was a kid.

    • +6

      Or the days medium Big Mac Value Meal was only $4.95. That was only about 15 years ago, and now it's almost double in price.

      • Thats not exactly the point he was making, but i do understand it. HJ's still serve large sundaes at $2 Where a small at maccas is $2.10

      • money is meant to double in value every 20 yrs

        • +6

          Tell that to Zimbabwe!

        • +1

          money loses value (inflation). If it doubled then the burger prices would be cheaper.

        • +1

          If by double you mean half, then I agree with you

        • you're at least half right

    • +5

      And they dont even flurry the mc flurry anymore. Just a fancy topping and if your lucky they'll stir it with the spoon.

    • +4

      Get 15 $0.30 cones for that same money, your choice

      Edit: actually 14 poor mathematician

      • +1

        I'd never get a McFlurry over a 30c soft serve as an Ozbargainer…

    • +1

      This is in line with the Big Mac index.
      Economist use a Big Mac's price to reflect the cost of an nations economy because it takes a lot of different industries to produce one Big Mac (I.e: labour, property, meat, diary, farm produce).
      Going by how house prices are climbing.. 2x inflation is about right.

  • +2

    hungry jacks without coupons is pretty fairly priced

    i dont see the need to go to maccas since HJ came around

  • If you want proof just buy a mcchicken burger, way overpriced.

    • +2

      Fillet-o-fish burger cost $4.85, most expensive for such a small burger.

  • +3

    being a macca's employee myself, i receive food half price, and sometimes free when working extra hours, but there are definetly some overpriced items, but there are always cheaper options, depends what you're looking for.

    for example, i reguarly buy myself a regular 10 nugget meal, it costs me around 4.95. so look at double that for the average person, when you can get 5 for $2 at Hj's. :p

    • +1

      How is 10 nuggets a meal? I wouldn't be able to eat 10 nuggets in a row, too much sameness

      • +6

        i consider nuggets to be "Sauce Delivery Devices", rotating sauces throughout the 10 nuggets breaks it up.

    • HJ nuggets are trash compared to maccas though.

      • I can't have chicken nuggets ever again after watching Jamie Oliver "make" them on one of his shows

  • +4

    At some point going to Maccas went from getting change from a fiver and no wait for a burger, to no change from a tenner and a 10 minute wait for your meal.

    The price increase is in line with the rest of inflation. What irritates me is though is waiting forever for the burger and that the savings in waste associated with it has not been invested into keeping the prices low.

    • I don't think they actually wasted the food before though. I can remember getting VERY OLD food as a kid and my parents taking it back 1 out of 3 times we went there.

  • +2

    Agreed. I had a big mac for the first time in about 4 months the other day I swear they have gotten smaller. For the proce I pay for a medium meal I expect to be full once I have finished it but that is not the case anymore Yet I eat HJs and cannot eat it all.

    • +1

      they have gotten smaller

      I totally agree. Three or four bites and you're done. Way smaller than a couple of years ago and way more expensive.

      • also HJs has free refills (most anyway)

        • Some of the HJ i usually frequent don't have those free refills anymore

      • The patty in the Quarter Pounder is bigger than the bun itself

        • +1

          I'm not sure they can shrink the quarter pounder. Wouldn't the name become false if they did that?

        • +1

          Just watch, I bet they will rename the Quarter Pounder soon to a QP Burger or something like that.

        • +2

          Nah. "Quarter Pounder" might just be the trademark. Subway got away with that with their "Footlong" sub being less than 12 inches.

        • does that means that 5ubway got away with 6 inhes sub being less than six inches as well ?

        • -2

          how'd you figure that out

        • Actually the buns are the same size.. I used to work at Maccss in high school 6 years back when they were transitioning to made to order. Btw I worked there for 5years through out high school from 2002-2008

          What happened was that before they use to have a hot plate that would flatten the bun a little and toast it. Making it wider

          Now the buns are run through a toaster feeder and no longer squash the bun so it does look smaller. Thus why quarter pounder meat used to fit into perfectly but on the new toaster it doesn't…

          Anyone who used to work there would probably know what I mean.

          In terms of pricing it just follows inflation I suppose.

        • Something to add on top would be that big Mac meat has not gotten smaller at all.. At least note in the past 12 years I don't think.

          Big Mac meat are 2 10:1 meat, the same meat patty they use for cheese burgers. I have to admit that because they no longer use the burger collar which were good for keeping all the fillings in, there is much less lettuce and all in the big Macs..

        • +2

          I'm afraid to ask… what is 10:1 meat? Feel free to not tell me if it means I'll never eat maccas again.

        • +1

          10:1(small burgers and bigmac)
          4:1(1/4pounder)

          its weight to 1 pound
          ie 4 x 4:1 meat = 1 pound
          so 1 = Quarter ponder

        • So a cheeseburger is technically a "One Tenth Pounder"?

        • yep pretty much so the meat size hasn't decreased at all in terms of weight which leads me to believe that the burgers have not gone smaller but just more expensive that's all.

          Funny thing is most people think that Mcdonalds use cheap unbranded stuff and what not. e.g. crap cheese from some unknown company but fact is most of their stuff are from reputable companies.

          Example
          Chicken patties (Steggles/Inghams)
          Cheese (Coon Cheese)
          Beef (Australian big name farmers)
          Sundaes/Shakes (Fontera)

          Source: I used to do stock take once a week when deliveries come in and if you do a quick google search you will probably see it on those said companies websites under supply chain probably.

          https://mcdonalds.com.au/about-maccas/our-supply-chain/suppl…

          P.S. Though by saying that it doesn't mean those big companies don't give the crappy cheap bits to Mcdonalds.

        • Might have to try that "just a trademark" line in the disappointment that follows after I pick up out clubbing…

        • I never understood the trade mark comments, it is obviously not true and would fall under foul of Australian consumer law.

          Also they could just call the company 100% beef, it wouldnt need to be a trade mark, but a company called that, that is selling products that are not 100% beef, would probably get into some strife with the ACCC as well.

  • +4

    I've stopped going to Maccas and pretty much Hungry Jack's only for this reason alone.

    ~$5 for a McChicken is borderline robbery.

    • +2

      Still cheaper than KFC's Tower Burger. Paid $6 for it. And it was bland.

      KFC, as a whole, really are the most expensive of the lot.

      • +1

        Ask for a tower zinger if you want it a little spicy

      • +1

        Are you serious? Streetwise meal is pretty decent, and $9.95 box deals are pretty good value, too.

        • Yeah streetwise burger for me, I actually prefer it to the normal KFC fillet burger. Think its like $7.50 or something for a large combo?

  • havent been to maccas for close onto a year

    dont see the point, food isnt good and the menu is played out and its too expensive

    HJ's coupons are killing the whole industry i reckon

  • Local prices aren't too bad. The last Big Mac Index (July 2013) had the AUD only 1.4% overvalued on raw data or 12.9% undervalued if adjusted for GDP per capita. With a Big Mac here costing $4.62USD compared to $4.56USD in the USA. Bringing higher wages over here into the equation, McDonald's is perhaps fairly affordable. Taking less than 20 minutes work at minimum wage to earn enough for a Big Mac, one of the fastest times in the world.

    • +11

      Rather than talking affordability, we are talking about "value" here, which a $5 BigMac certainly lacks, especially when you compare to Hungry Jacks or 6inch Subways.

      Here's something else I get to compare to — Chinese takeaways. 15 years BigMac Meal $4.95, Chinese takeaway $6.50 — maybe comparable value as Chinese takeaway is substantially larger serving. Now days BigMac Meal $8, Chinese takeaway $8.50, which gives BigMac Meal much less value (not to mention the size of BigMac actually shrunk).

      Then again Chinese takeaway shops probably haven't increased the hourly rate for their workers over the last 15 years.

      • i havent been to takeaway for ages as i find it too pot luck but i remember getting a big feed for $6-$8

        i wouldnt expect prices to have remained the same over 5yrs for example

        also as far as maccas goes, is it comparing two franchise dynamics?

        McDonalds HQ is very well established and they're basically playing a long term game. They're not gonna dilute their 'worth' with coupons. You pay $X,XXX,XXX for their franchise and sit it out.

        Hungry Jacks is different. I see a reasonable amount of chop and change. They are hungry (so to speak) to get more franchises up so they do this coupon thing to get traffic.

        It's ultimately a losing game but for how long?

      • +5

        Probably haven't increased the hourly rate for their workers over the last 15 years.

        Hahahahaha.

      • Which Chinese takeaway are you going to for $8.50? Haven't seen those prices in years.

        • tall lemon grass @ crows nest - 8.50 lunch specials
          ok its thai not chinese

          there was also chinese place @ st leonards which at 8.80 lunch specials not too long ago as well

        • +1

          I live next to Kingsford. Heaps of Chinese takeaway here catering for the uni students. $8.50 would be the median price as some start from $7/$7.50.

        • lol my rents restaurant is in kingsford xD and yep they have to cater for cheap uni students….

        • +1

          Mrs Wong's @ Merrylands… Most lunch menu items are around $6.50-$7.00.

          Went to Mt Druitt the other day (ironically to pick up an OzBargain deal) and bought 4 mains (Honey Seafood, 2xS&S Pork, Honey Chicken), 2 large fried rice, 10 spring rolls and 4 Dim Sims from Hong Kong Seafood (in food court at Westfield). Total cost was $21 and fed 4 of us very well.

        • +1

          chilliz

        • Hunter arcade - First floor in Sydney CBD, asian food with 1 choice for less than $5, 2 choices from $5.50 to $7.00, some 3 choices from $6.50.

          If you go after lunch time (after 2:00 pm), you can get pre-packed lunch for $4.

          Salad rolls can be had for $3.50 should you need a healthy alternative, been going there for years and in most cases, prices have not increased at all.

          The best takeaway IMO is the the Thai takeaway when you come up the escalator, on your left. Its the best value for money in terms of taste/price. The name escapes me though.

        • Used to work near Hunter in the Sydney CBD, and I would sometimes go there after 3PM. $5 would be enough to get you a late lunch + a takeaway to bring back home. That was quite a few years ago though.

        • Damn, when I get Chinese and it costs like $17-18 bucks, just for the meal not including any rice. It actually contains real food though.

        • Place where I get my Chinese takeway food is only $7-8(used to be cheaper) for rice and meat/veges with sauce. Lady there stuffs the food in the plastic container so well there is about two servings there and it contains 100% real food.

  • +1

    Yep prices have risen and sizes are a lot smaller than they once were.
    Not that I went to Mcdonalds years ago much, but now I never go there.

  • Ever since I realised about HJ's coupons, I've never bought from McDonalds. I just save the .pdf on my phone and show it to the person at the counter. 80% of the time I don't even need to show them the coupon.

  • +2

    Who remembers the $2 meal? Cheeseburger, small fries and small coke.

    • -1

      They have this again for only 95¢ more. Bargain compared to HJ's. So it really varies.

    • +1

      The '$2 all day meal' - It was a happy meal without the 95c toy (Happy meals were $2.95).
      Large Big Mac meal was $4.95 around the same time (14 years ago?)

    • Medium cheeseburger meal cost me $5.55 a couple of days ago, with a water. And I say "medium" generously, the fries were a "small" in a medium container.

  • +1

    McDonalds loose change menu + free medium soft drink with Student Edge card (which I forgot to use last time, oh well) = pretty cheap meal

    https://beta.studentedge.com.au/discount/48

  • Honestly, both are expensive when compared to Domino's or even Pizza Hut. Pizza is a bigger meal than a burger

    • +3

      My local Pizza Hut has a personal pizza and 375ml can for $3.50 between 3 and 5 on Weekdays. They always ramp up the production during this time as the line forms at about 2:50PM.

      • Whoa! Nice man.

  • I have a McValue lunch card which enables me to get a big Mac 'deal' same as a medium meal for 5.95 which is $1 more than the burger itself. I think at the top end there isn't a huge difference in normal price between a big Mac meal and a grand Angus meal. If you compare mcafe to say a Gloria Jeans I think mcafe is awesome value lue. I hate cafes charging over $5 for a large coffee

    • +1

      How did you get hold of the McValue lunch card?

      • I had one but it expired at the end of October here in Qld. Haven't gone for lunch since.

      • Oh ok, where'd you get it from originally so I know where to look out for it when they bring out another one. Is it in store or something and you just ask for it etc??

        • They used to hand them out during lunch time when you ordered a meal.

          mine expires 31 December 13. (NSW)

        • What sibrelli said. When it runs out I'll call their consumer hotline and ask very nicely if they have something similar

    • I was given one those tafe VIP cards from 20 years back. Buy anything (anything at all e.g. like a soft serve cone) and get a free medium drink or small fries. No expiratory date. But limited to local MacDonald only (most of these are closed or have moved). The later versions was more crappy you had to buy a burger. Then the last kinds I saw was buy a value meal to get the offer and with expiratory.

      As for Chinese take away i get it for $3.50 a box at Wynard in Sydney on weekdays.
      hungry jacks with coupons or shake and win is ok with 2 for one.
      I really miss the 50% off.. The Aussie burger is quite nice especially when its half price.

      MacDonald's. I probably spent like $20 there in the last 10 years.

  • +6

    I go to HJ to get their $1 Med Frozen Coke.

    • +1

      Yes, didn't visit HJ for probably 10 years before frozen coke became $1. Have since been a regular - but only for the frozen cokes.

      Also maccas - with $1 small fries.

      Now if the kids finish their main meals (never HJ or maccas) while we're at the food court I "splurge" and get them a junk food fix for like $4.

  • http://www.reuters.com/article/2013/12/09/us-mcdonalds-sales…

    Expenses also translate to your health and the toxins in your food supply (McDonald's dictates how much of our food is produced and which varieties of food are grown and which toxins are approved for use in our food supply just by their sheer buying power & lobbying power. Even if you don't eat there you are affected.).

    http://www.youtube.com/watch?v=FEMbWn6ClxM

  • It's expensive, but more importantly it is just getting disgusting. Only good thing left is a McFlurry with apple pie bits, but it's expensive over $5.

    Haven't seen one since I moved, but The Negotiator magazine has coupons. Western Syd only http://www.nmags.com/

  • +1

    I present to you. All of you! The extreme burger combo…

    • Zinger for the burger
    • Original (thigh) piece
    • Pepsi (600ml)
    • Large chips
    • Small potato & gravy.
    • Bread roll (optional), but if you're badass (like me) you'll get two. :)

    All for about $13.

    Winner, winner, chicken dinner. :D

    • KFC fill me up unlike to others.

      • +2

        As much as I like KFC once in a while, I always feel like crap afterwards and vow never to eat it again.

        Definitely full, but mostly oil and regret.

        • +4

          Regret….a free bonus that comes with every takeaway meal.

  • +1

    The country I live in, a Big Mac medium meal is about $5.50 and this is with the imported Aussie 'beef'.

    But the I think the reason is quite obvious, unlike in Australia, Maccas is struggling to raise year-on-year sales and only sees price leadership as the only strategy. Australians are simply continuing to buy Maccas despite the price hikes, and that's giving them signals that they haven't met price efficiency yet.

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