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McDonald's Japan forced to increase prices due to rising costs

McDonald's Japan will raise prices for 13 products ordered in-store and nearly all items for home deliveries due to increasing ingredients, labor, and logistics costs.

The 13 products ordered in-store account for 20 percent or so of the menu, which includes hamburgers that will go up from 110 yen to 130 yen.

Prices for home deliveries would go up by between 10 yen and 30 yen for home deliveries.

Certain McCafe coffee chain sweets will go up by between 20 yen and 100 yen.

It would be the first price increase for a long time for McDonald’s Japan, which last embarked on wide-ranging hikes in 2013.

The fast-food chain also increased prices in April 2019 for three menu items, including double cheeseburgers. Hamburgers rose to 110 yen that October to reflect the consumption tax hike.

Supply chain disruptions have pushed up logistics costs for imports.

McDonald's Japan sources wheat from North America and Australia and buys beef mainly from Australia, New Zealand, and the US.

According to Tamotsu Hiiro, president of McDonald's Holdings Co. (Japan), while "no decision" had been reached regarding increasing menu prices, they ultimately saw no choice.

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