McDonald’s: franchisees set local prices

Same brand, different prices: McDonald’s has explained to German newspaper HNA why prices are not uniform across its restaurants in Germany. Most locations are run by independent franchisees who set their own prices. Published on 6 November 2026, the report on Big Mac prices in Kassel highlights an important question for the franchise community: where does a consistent brand identity end, and local business decision-making begin?

Recommended prices are not binding

“As a general rule, there are no uniform prices in McDonald’s restaurants in Germany,” the company’s Munich press office told HNA. Most restaurants are operated by independent franchisees, who make their own pricing decisions.

McDonald’s says it does recommend prices. However, the company explicitly describes these recommendations as “non-binding”. A recommendation from head office is therefore not the same as a mandatory selling price for all franchised restaurants.

For customers, this explains why a familiar product sold under the same brand does not necessarily cost the same everywhere. For the franchise community, it also clarifies how responsibilities are divided: at McDonald’s, a shared business concept does not mean that every commercial decision is made centrally. According to the company, a substantial share of responsibility remains with the individual operator, particularly when it comes to pricing.

The explanation concerns the general organisation of pricing in Germany. It is neither an announcement of a new pricing rule nor a statement about a nationwide price increase.

The costs McDonald’s identifies as influencing prices

The press office lists several factors that play a part in pricing: local conditions, along with staffing, energy, ingredient and operating costs. McDonald’s is therefore pointing to the commercial circumstances of each restaurant, rather than simply the product on offer.

HNA also notes that prices are higher at motorway and airport locations. The report cites Lohfelden as an example of a motorway location. Location is therefore an important part of the discussion about price differences between restaurants.

However, this list of cost factors does not provide a precise breakdown of the price of an individual Big Mac. The company’s explanation identifies the factors involved but does not quantify their respective shares of the selling price or describe the financial position of any particular restaurant. A higher price alone is therefore not a reliable indicator of how profitable a location is.

This distinction matters when making an objective price comparison: observable differences in selling prices and the reasons behind specific pricing decisions are two separate issues. McDonald’s explains the general responsibilities and cost factors, not the full calculation behind every restaurant price.

Shared standards, individual business risk

The HNA report places the pricing question in the context of the franchise model. A franchisor makes its business concept, name and brand available to franchisees, who can use them to run their own businesses in return for fees. At the same time, franchisees must comply with the brand’s quality and business standards.

Operators are commercially independent and bear the business risk. Shared standards therefore sit alongside independent management. The pricing approach described by McDonald’s makes this division of responsibilities particularly visible to customers.

For anyone considering becoming a franchisee, this is an important distinction: joining a well-known brand does not remove responsibility for running your own business. In the model described here, that responsibility includes deciding on selling prices. Following a head office recommendation is therefore no substitute for understanding the costs of your own restaurant.

What the pricing debate means in practice

The latest report draws attention to a point that can easily be overlooked behind a brand’s consistent appearance: its restaurants are not necessarily identical businesses in commercial terms. According to McDonald’s, their prices are largely set by independent business owners, taking account of differing local conditions and costs.

When discussing the issue publicly, it is therefore important to distinguish between brand identity, recommended prices and the prices actually charged in restaurants. It is equally important not to interpret the company’s statement as a new policy. It explains the existing principle of independent pricing decisions at McDonald’s.

Practical takeaway: Anyone considering becoming a franchisee should establish which pricing decisions rest with the franchisee and what recommendations head office provides. Pricing calculations must then reflect the specific costs of the individual location, rather than simply the prices charged by other restaurants under the same brand.