Climate Change Victim: McDonald's Dollar Menu?

Drought leads to rising beef prices

By Evann Gastaldo,  Newser Staff

Posted Oct 23, 2013 1:32 PM CDT

(Newser) – McDonald's iconic Dollar Menu will next month become the Dollar Menu & More, meaning some of the items on it will cost $2 or even $5. What can you blame for the increase? Quartz says climate change. Rising temperatures have led to droughts, which have forced ranchers to pay more for feed and raise fewer cows as pasture space diminishes. All of that means more expensive cattle, and thus, more expensive ground beef.

Another issue: Franchisees have never been happy about the menu's ultra-low price-points, and with beef prices on the rise, McDonald's decided to allow them "flexibility" with the prices of certain items. Plus, as Businessweek points out, franchisees aren't happy about keeping items at $1 when something that cost a dollar in 2002 (when the menu was introduced) should cost $1.30 today. Even so, analysts think some franchisees will still be annoyed at having to make a change, but in the end, they'll profit from the new menu, Reuters reports.

In this Friday, April 20, 2012, file photo, a McDonald's sign is shown at a McDonald's restaurant in East Palo Alto, Calif.   (AP Photo/Paul Sakuma, File)
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