McDonald’s food costs have been a national topic for years, but change is coming. The controversy that led to the changes stemmed from nationwide anger over food inflation, with the ubiquitous and highly symbolic McDonald’s being the biggest lightning rod. Photos and charts showing McDonald’s prices before and after the pandemic are often posted on social media, often claiming average prices have increased by more than 100%. The trend has forced McDonald’s to respond to claims of crazy price increases with a fact sheet.
Granted, many of these numbers are overstated, but McDonald’s prices have increased by an average of about 40% since 2019, which is still a big increase. This has led to a slowdown in sales over the past few years. Apparently, the fast-food giant is freaking out, because starting this year, McDonald’s is cracking down on franchisee pricing to put a greater emphasis on value.
This might be hard to notice because all of this is happening behind the scenes, and McDonald’s isn’t committing to specific price drops, but it could mean some more affordable meals. The company has announced plans to update its franchise standards to allow these establishments to adjust prices based on local factors. Essentially, this would push (but not force) franchisees, which own 95% of McDonald’s locations, to reconsider pricing decisions.
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The move was unusual. An important aspect of the McDonald’s franchise owner relationship is their freedom to set their own prices. In return, franchisees agree to standards of behavior around the restaurant. McDonald’s has long provided consultants to its franchisees, helping them set prices based on the market but not passing judgment on their individual decisions. This is what’s changing.
While franchisees still have final pricing power, McDonald’s will now evaluate those pricing decisions based on the value it wants to demonstrate to consumers, driving more consistent pricing overall. While the company won’t have direct control over pricing, violations of the new franchise standards could result in penalties, including the revocation of the franchise license itself.
This is a continuation of McDonald’s return to higher value. The company’s same-store sales slowed or even declined slightly in 2024 and the first half of 2025 as consumers with lower incomes cut back on spending. In response, McDonald’s introduced $5 meal deals and restored value meals. This appears to have paid off, with same-store sales returning to positive territory in the second half of 2025. That success appears to have sent a message, and McDonald’s price changes for 2026 reflect McDonald’s continued commitment to repairing its value to customers.
While all of this may seem like a small thing, the response from franchisees shows how important it is. The National Owners Association, an independent group of McDonald’s franchisees, put together a 15-item list it calls a “Franchise Bill of Rights” to counter McDonald’s move. One of those rights is very clear, the right to set prices without penalty, meaning franchisees must be able to make pricing decisions freely without intimidation from McDonald’s.
While some other industry groups have set such standards, it’s unusual for a group of fast-food restaurant owners to explicitly and publicly oppose their corporate partners. While McDonald’s new pricing system is clearly a major sticking point, tensions had been rising before then. The company has recently taken steps such as tightening standards for renewing franchise agreements, raising royalties on new McDonald’s business and forcing franchisees to renovate stores. The level of control McDonald’s desired over its brand began to conflict with the long-term operational aspects of the franchise business model.
You may or may not see better deals on your favorite McDonald’s items this year, and prices will still vary by location, but the chain has clearly heard customers’ concerns about rising prices. It has launched a showdown over price management that could have major consequences for the brand’s future.
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Read the original article on Tasting Table.