McDonald's Japan hikes prices in city centres as costs bite

TOKYO (Reuters) - The Japanese operator of McDonald's restaurants said on Monday it would raise prices at 184 city centre branches, equivalent to about 6% of its 3,000 stores, to help absorb higher rents and labour costs.

Until now, 40 stores in some city centres and special locations such as airports and motorway service stations had been subject to "city centre pricing".

McDonald's Holdings Company Japan said the new pricing would start on July 19.

Many businesses have begun passing on to consumers the higher costs of imported energy and raw materials.

McDonald's, Japan's largest fast-food chain, has led the way with three price increases across all outlets since March 2022, including the latest one in January.

McDonald's said the latest round of hikes would range from 10 to 90 yen per item or set. The delivery price of a Big Mac would rise to 590 yen ($4.16) from 540 yen, it said in a press release.

The yen has fallen to 141.81 to the dollar, from around 133 at the beginning of the year.

($1 = 141.8000 yen)

(Reporting by Anton Bridge, Editing by Chang-Ran Kim and Angus MacSwan)

By Anton Bridge