McDonald's raises prices 'in poorer suburbs'

McDonald's plans to raise prices on its menu in Australia's poorer suburbs where consumers are more willing to pay more, according to reports.

The fast food restaurant chain has made the biggest changes to menu item prices based on socio-economic factors, News Limited newspaper reports.

What do you think about a fast food chain making low income suburbs pay more? Share your thoughts below.

"In general, the poorer suburbs will pay more," a McDonald's franchisee was quoted as saying.

McDonald's confirmed there was a new pricing strategy, saying the "refinement takes into consideration individual factors that relate to each store".

Under the cost changes, to be rolled out in several stages, Happy Meals will increase by 16 percent from $4.25 to $4.95 at stores across Australia.

Other prices increases will be up to 3.3 per cent, depending on the location of the restaurant.

A document obtained by News Limited said stores would "maximise the potential for a price rise".

Outlets marked for changes in NSW included Campbelltown, Fairfield and Gosford, while Queensland’s Logan Central, Ipswich City and Inala Plaza are also pegged for price hikes.

In Victoria, 52 of the McDonald's 214 stores would be targeted — mainly regional areas including Traralgon and Echuca.

McDonald's corporate communications manager Bronwyn Stubbs said the company worked out prices according to "established research techniques" but denied the changes would be forced upon franchise owners.

ninemsn 26 Feb 2009

Quite simple : Food for Cannon Fodder,

full of carcinogenic chemicals.

The nutritional value of the burger is similar to that of its packaging.