“Two McDonald Right Next to Each Other But With Different Prices” – The Mystery of “Store Classification”

Did you know that McDonald’s Japan sets different prices depending on the area where the shops are located?

A social media post about two close McDonald’s having a 60 yen difference in the price of the same menu created a stair in Japan’s social media. The two McDonalds, “Kanda Suehirocho Store” and “Bic Camera Akiba Store,” are located approximately 450 meters straight line from each other. Yet, the price of a set menu for the same burger was higher in the “Bic Camera Akiba Store.”

The answer to this mystery of different prices lies in the “store classification” and McDonald’s implementation of the “Urban Area Pricing.” In July 2023, McDonald’s Japan expanded the application of “urban area pricing,” where some products are priced higher at stores in major metropolitan areas. The prices change depending on the classification are as follows;

Prices are set higher in the order of “regular store” -> “semi-urban store” -> “urban store” -> “special location store.”

In the case of these two very close stores, while the surrounding stores, including the Akiba store, were all classified as “urban stores,” the Kanda Suehirocho Store alone was classified as a “semi-urban store,” which is why it sold items at a price 60 yen cheaper. Although it would help financially to know which store is priced lower, McDonald’s Japan does not disclose information regarding the classification of each store.

Pricing Mystery of McDonald’s in the US

Many McDonald’s in the US run with a contract of franchising, which allows franchise owners to set menu prices and which promotions to join. Due to this policy of allowing franchise owners to have autonomy over many business decisions, two McDonald’s locations within the same area might have a different pricing structure.

In addition, the average price of McDonald’s menu items has increased by around 40% compared to 2019. The company claims that this is due to the rising cost of goods and crew salaries. It is getting harder for people to buy affordable meals even from a once-known-budget restaurant.

In response to this unfortunate circumstance, it was reported that the company would offer a $5 value meal starting June 25th, 2024. This promotion will include four items: a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. This incredible deal is planned to run for roughly a month. The question of which McDonald’s you can get this promotion is still unanswered, as the franchise owners have autonomy over which promotions to participate in.

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