McDonald's franchisees set prices, causing variations
McDonald's prices vary significantly between locations due to franchisees setting their own prices based on costs and competition. This leads to price differences for the same items, such as a Big Arch burger costing nearly 5 euros more at one location. Franchisees, while operating under the McDonald's brand, compete with each other and set prices based on factors like rent, supply costs, and local competition. This explains the price discrepancies observed between restaurants, even those in close proximity. These price differences are not new, and consumers can find price comparison forums online. McDonald's restaurants can't collude on prices, except during national marketing campaigns, leading to varied pricing strategies.