The idea of the Big Mac index is actually that it accounts for all sort of cost, but it is of course not very scientific only it is easy, illustrative(since we can all buy a Big Mac) and it does provide some rough ideas when comparing countries.
HINT: "here" is a BAD WAY to say "Germany/Europe"! WORDS ARE IMPORTANT for precision (and I believe you are a "scientist"?). *_"If you can't say what you're meaning, you can never mean what you're saying. The details [=PRECISE choice of words] are everything!"_* - Babylon 5 ... (which is well worth watching for MANY wise quotable bits).
An important insight on McDonalds as a corporate entity is that they don't actually make their money from selling fast food anymore. Today, McDonalds is essentially a real estate company that rents out restaurant locations to franchise holders. At quite exorbitant rates, usually. When corporate McDonalds talks about "strategic price increases", they don't mean that they dictated Big Mac pricing at their franchise locations - they mean that they raised rents for their franchise holders, and letting those franchise holders figure out what prices to increase in what ways to make up the shortfall. This of course also contributes greatly to the differences in pricing across countries, or even within regions in a country.
yeah, "McD HQ makes vast profits on non-food" is not news. I would actually be surprised if they actually made noticeable food money. Then going on about minimum wages in context with that was just... not researched up to channel standard.
i know two especially cheap mcdonalds locations both of them would loose the majority of their customer base if they raised the price to the level of other mcdonalds because as of now they act as natural gathering points for students
I had never seen the index expressed in how long an employee would have to work in order to buy a 'meal' and I think this is the best overall comparison I know of to compare economies. There are so many different variables for the sales price that it would be easy to shuffle some data into the weeds to make a particular point. That boils everything down to the practical basis of survival in the food realm. It would be interesting to see this indexed as a percentage of disposable income as well, since infrastructure (public transport/medical/housing) would have dramatic differences between countries.
Back in the '68 period, a bunch of leftist splinter groups such as the KBW ( _Kommunistischer Bund Westdeutschlands_ , of which my father was a member), used to develop similar indices, in the case of the KBW the _Schweinskotlettindex_ . That one was based directly on the time an average worker would have to work in order to afford a pork cutlet. The results, give and take a bit and adjust for all the work being done by volunteers without any funding, tended to be quite, quite, similar to the BMI in the "hours worked" version. And they were surprising, nay, infuriating, when compared to stuff such as stock market prices.
I only saw the first two minutes of the video and would like to make a comment before watching ... because I happened to discuss the topic with a friend last week. I admit that I like to eat a BigMac from time to time. And no, they are not comparable! You can immediately recognize the BigMacs in every country, the basic taste is the same everywhere, but only the BASIC taste. The dining experience of a BigMac is quite different depending on where you buy it. I had the by far worst in Hawaii and the best in the Czech Republic. McDonalds are also different within Germany, but overall much better than in the USA, England or even France. The difference is extreme with the nuggets, which are actually not eatable in the USA. So now I will watch the rest of the video!
That’s so fascinating!!! I was personally blown away by the level of transparency. I went into a McDonalds in Switzerland and they had a sign saying the exact farm they sourced their lettuce and cheese from. I know that likely isn’t at every location, but to see that kind of farm-to-table system at a fast food restaurant (especially this one) was mind boggling.
Okay, I'm through. Very interesting. The standard shopping basket is a very good measure of the financial situation in a country. Putting it on an article - even if it is iconic - may be problematic, but it is striking and easy to understand. Therefore, yes, I think that works excellent with the BigMac price. In any case, better than using a 180g beef steak medium-rare ;-) in connection with the working time that an employee at McDonalds has to spend, this is also thought-provoking. The price for a BigMac menu in Zurich corresponds to a whole "real" meal for me and also here in Bavaria McDonalds seems to me to have become disproportionately expensive, but as a consumer it is also important to me that the people who work there can also live "okay" from their hands work. For those who look down at McDonalds and do just use the usually clean bathrooms: It has changed a lot - especially in Germany - in system gastronomy and a fresh BigMac from time to time - not as a standard meal - is delicious, really. The fries are better than in most restaurants... I advise you to give it a try. However, I wouldn't recommend the simple hamburgers/cheeseburgers and some of the really artificial-looking desserts. Also not bad: McCafé
In a strange coincidence, I was in the US (Kansas) last week and did have a Big Mac while visiting. Disclaimer: I am not a regular McDonalds customer, I have another brand that I prefer. The Big Mac meal that I had was not that great. The quality left something to be desired. The sandwich was just OK and the fries were somewhat soggy and poorly cooked. What really surprised me was the price. The meal was $11.67 including tax. Just about 3 years ago it was around $8.00. The same meal where I live in Spain is about $9.80 (converting Euros to $) and the taste and quality are better. Over the years I have had McDonalds in a lot of countries and the flavors a varied greatly. Some have been a little unusual including a slice of beet (beetroot) being offered in Australia and beef not being used in India because of religious reasons. I do find the use of Big Mac pricing as an economic tool interesting. One side note: McDonalds just started offering a Chicken Big Mac in the US. Two breaded chicken patties are substituted for the beef. They are offering it for $5.30 as an introductory price to generate customer interest. I wonder if we will see that soon on this side of the Atlantic soon. Kudos on another interesting video!
Wow that is really interesting (and while I wish I could say the price was shocking, since we were just there too, that price seems pretty standard now). As a family of four. It is tough to spend less than 40 bucks now for a meal for the family at McDondalds. By contrast, for just slightly more, we can dine at our local German Restaurant down the street and have a sit down experience.
Chicken is running around half the price of beef in the US, I am sure they will reflect that cost differential in the chicken Big Mac... wow, I got that out with a straight face.
Any fast food lunch with a drink and a side is $10 or higher here in the US now. I read something not too long ago about a standard Five Guys hamburger meal with fries and a drink that was about $20 now! That's just crazy! Not sure how people can afford to eat out anymore. I certainly can't on my budget.
As always, Ashton, well researched video even if you claim it isn't up to your usual scientific standards. I have to respectfully disagree; even if you can't access the same data sources as larger research institutes your data takes into account more variables than I believe the institutes take even note of. Both price gouging and profit increases/stock buybacks have led to vast increases on prices/inflation or at the very least to shrinkflation. It was very, very rarely the increases in salaries/wages. I am not saying that increases in wages have _NO_ effect on prices. I would wager that it has a far lesser impact than claimed by many lobbying groups working for the mega companies around the globe. The increase of profit margins is the real culprit for inflation. As a little anecdote from the early 80's for a certain McD's product in Europe: the quarter pounder. Initially it was also marketed as "Viertelpfünder" in Germany as well, so a literal 1-1 translation. Soon after it's name was changed because McD's noticed that in Germany _everything_ was regulated to hell and back. Including outdated measurements like the "Pfund". Which was incidentally one-half kilo, or 500 grams. So a beef patty for a German "Viertelpfünder" needed to weigh 125 grams. However a US customary unit "pound" is merely 453.59237 g in the USA. So the quarter pounder patty in the USA weighs only 114 grams. While roughly 11 grams difference isn't a lot individually it does add up quite a lot when millions are sold annually. On top of that the fabrication of the patties would have needed to be adapted to the multiple definitions of "pound" the world over. So in Germany the quarter pounder changed its name to Burger Royale. I don't know how it's called the world over. But it definitely does not include any weight definition in its name anymore in Germany.
10000% agree on your assessment on the rise of prices. I think the story on stock buy-backs and investor profit margins is lost on the average consumer. They just see that their prices are rising and the legal conversation surrounding minimum wage, and it is both easy and convenient to lay blame on the workers. On a smaller anecdote, I am really curious to know why McDonald's in Germany puts way, way, way more condiments (mayo, ketchup) on the burgers than in the USA. You spoke about the differences in the weight of the patty but I wonder why differences also exist with toppings. I have been to numerous locations and every single time it is drowning in condiments. Is this just a consumer preference? I am always too shy and non-confrontational to actually ask that they put less (I just wipe some off when I get to my table). But it is something that has happened enough to where I am curious why it is done that way.
In the US the Big Mac probably once was a very cost effective way to get a meal when there were not many other options available. Germany has staple fastfood items like Currywurst or Döner Kebab at almost every corner. And their prices are affordable. So if MacDonald raises prices beyond certain levels here, they just make their customers go to different locations with meals easily as good as a Big Mac or anything they offer. And comparing the quality of a Big Mac and a Döner, well, we know who would win in almost all cases.
I personally am not a Döner fan (I have problems with the size - too big and the sauces), BUT just yesterday I had a Kebab-Wrap (2 meals for me😂) and I would take that over a Big Mac anytime. Edit: My cat thought I was finished typing, therefore "entered" the comment 😺
Ah, sorry. That does not add up. In the US you have way more competition than just Doener or Currywurst. On any single main road, you have at least 20-30 different fast food places. If what you are saying would be true, and Mc Donalds raises prices, customers would just go to the other options.
@@gloofisearchit's not really a competition when there are usually just a few different fast food chains whose CEOs are all members of the same golf club. Some chains are only apparent competitors e.g. KFC, Pizza Hut, Taco Bell and The Habit Burger, all of which are owned by Yum Brands.
FYI, I'm Dutch and just checked the McD app for prices here in the Netherlands, using (as far as that matters) the location closest to me: 1 Big Mac costs EUR 5,65 and a menu is 10,55.
Well the App is more expensive than the actual locations, another thing is every location here in the Netherlands has different prices, it is known that in Rotterdam the cheapest McDonald's location is in the Netherlands and the most expensive is in Exepensive the €10,95 menu is mostly in Rotterdam (also possible in other locations of course) and the same menu is around €6 more in Enschede
inflation is not driven by labor cost. There were multiple investigations into the inflation during and after COVID and the result overwhelmingly is corporate greed.
I did not investigate this, I just noticed the pattern of the rich "feeling poor" after covid lock down got more greedy and aggressive as soon as the consumer was no longer locked up. Having been locked up only to get robbed by the rich... I'm no communist, but if being rich means you need to rip me off and steal everything... Robin Hood is my hero.
Fascinating! I admit, for me as a swiss from Zurich, I was kinda stunned from this. We know our Big Macs are the most expensive in the world, but I never realized how little we have to work for one. Also one aspect I kinda miss is the fact that most swiss I talked to don't really see McDonald as a restaurant. Unlike in the USA (I admit I am not expierienced enough to know how other europeans look at McDonalds) where Fast Food is pretty essential i the daily life, here in Switzerland McDonalds is seen as a Novelty. You don't go to McDonalds mainly because you're hungry. You go there because its kinda comfort food. You go to McDonalds with your kids as a reward, young people gather there before or after a night out. Or you get a Burger after a stressfull day. If you are hungry you either go home and cook or go to a real restaurant. And I am guessing McDonalds Switzerland knows that. The prices have risen since I was a kid of course, but not by much. For example, a box of cigarettes are 4 times as much since I was a kid and went to buy them for my Dad. While I was able to afford a Big Mac with my allowance and I'd argue you still can, it is actually cheaper than said box of cigarettes. But, like you said in your video, this isn't a scientifically proofed fact, just the overall feeling I share with most swiss
The cigarette/Big Mac comparison is not a very good one, as cigarettes mainly became much more expensive over time due to higher taxation, not due to higher raw material or labor costs.
@@thegreatxcelerator4224 True. It was just the first thing that came to mind. Although I dont recall milk or other things getting that much more expensive. But that might be with the heavy subsidies the swiss government grants to food producers here. But that's why I aid its more a feeling than scientific ;-)
Here, in the Netherlands the price of a menu doubled in about 4y (since covid). You could have a pretty quick bite that was acceptable for about 7 euro a meal, now it's closer to 15-16 euro a meal. (And the quality or size hasn't improved) It was a habit to get by a drive when on the road to family (as we're on the road during lunchtime), no we just make some bread and eat on the go. (saves 30 min as well as loads of cash) I'm convinced an index based on of of their burgers (the worst one at that, no taste what so ever) is not a valid indication on how the economics compare per country.
In Germany (and other European countries) we have the so-called 'standard basket' of goods for such comparisons. This contains the things (and the average costs) that a person needs for daily life. Items in the standard shopping basket are (in different weightings) : * Food, non-alcoholic beverages * Tobacco products, alcoholic beverages * Clothing, shoes * Housing, water, gas, fuels * Furnishings * Health, care * Transportation * Communication * Leisure, culture, entertainment * Education * Hotels, restaurants * Other goods and services The 'purchasing power' results from all these things together with the average salary. this is much more accurate than a “burger index”. This makes it easier to estimate prices (e.g. for a Bigmac).
I think the "Big Mac" index turned out better than most others. It reflects well researched data on how much money can be extracted for convenience food around the world. Fun fact: Here in Austria, I can feed five people, easily, by throwing €12 worth of frozen friable foods into an air fryer. When I'm not having a party, but some people turn up anyway. It would be difficult to get a meal and a drink at a restaurant, for a single person, anywhere, at twice the price.
I cannot even remember when I've last been at a McD. Must have been > 3 years ago, last remembering at a Autobahn since there was nothing else I know nearby, and before the way over 10 years ago. So, for the price, I cannot say, since the quality is not good enough to eat there anyway... Not saying it will never happen in the future again, but not often enough to care about the price :D.
McD started the campaign "XX % Beef from Germany" (I think, it was about 80 to 85 % in the beginning) after the first news pictures of the "mad cow disease" aka BSE came from the UK and many people in germany were worried about getting CJD when eating a burger.
There's a great graph that plots the price increases of McDonalds food items against inflation. At the latest data point the price increase had reached double that of the inflation rate.
As a fan of this channel and a retired franchisee I have a bunch of thoughts here. What I will add is a little trivia. It was in the late 90’s/early 2000’s that the US and Canadian markets began importing beef from outside the US. In fact, it is my recollection that the cases of beef used to be stamped All American Beef.
Restaurant meal prices are pretty much independent of the ingredients in the meals. Fixed costs make up 80 to 90% of the cost. Things like: rent, property taxes, utilities, insurance (buildings and contents not health) equipment maintenance, depreciation, loan interest and staff costs, which if memory serves is less than the first three things on the list. In traditional restaurants most profit is made from drinks and this is probably true of MacDonalds given that most soft drinks are just water, corn syrup, CO2 and flavourings. I'd be interested in seeing a taste test, but I have no idea how this could be achieved! Very enjoyable and informative, as always. Thanks!
Switzerland is not in the EU. Switzerland, rightly or wrongly, has policies designed to protect local farmers - especially beef producers. This means that Swiss beef is more expensive than elsewhere in Europe but that it is probably impractical for McD to import beef from (say) France.
I rarely ever buy a Big Mac if I happen to go to McD. But I noticed I often compare the price of a McMenu to other options. Like if I buy a menu for me and my retired mom it costs over 20€ at McD. I could get a similar meal at a Döner restaurant for about half the price. The Döner guy is not a magician. He has to buy his ingredients on the market too. But the difference is quite stark.
I eat at McD maybe 2 or 3 times a year so my experience is not really statistically significant However, here in Switzerland my experience has been much better than America Disclaimer, in CH I go in off hours which normally forces McD to cook the meal from scratch
As always, great video. I grew up in a small village in Germany, and there was no Mc Donalds anywhere close. When I was 18, we drove between 50-200 miles to get to the next Mc Donalds. The stark difference, because the 200 miles Mc Donalds was open 23 hours a day at Frankfurt Airport;-) So, as soon as a Mc Donalds opened up just 15 miles from where I lived, I became a Mc Donalds super fan and the Hamburger Royal TS (Quarter Pounder with Cheese, Tomato and Salad), was my goto on a daily basis. Everywhere I traveled in the world, I went to Mc Donalds, yep, I was young and stupid;-) Nevertheless, the European versions always did beat the US versions, however, the Asian versions were just bad. Once Mc Donalds in Germany changed to make sure that the burgers are no longer stored under the heat lamp, to me, the quality went down, as the burgers were often cold when you got them. Nevertheless, today, I am no longer eating at Mc Donalds. My last visit is at least 2-3 years ago, just to get some fries for my Steak. Now, the sourcing of the ingredients is in fact very good in Germany. I remember, a friend of mine worked at Mc Donalds in Emendingen and the Franchise owner went on to get the salad from farmers in the area. They actually really look that they get the best ingredients. In the US, however, the shoppers do not care at all. I asked my family members and they said "I do not care where the stuff comes from".
Hats off to the research going into this video!! I would agree that, at least in the United States, McDonald's is purposefully deceptive in mentioning where they get some of the ingredients. Unfortunately, a lack of transparency is status quo in corporate America these days. More to the point, the Big Mac Index in today's terms, I feel, is woefully inaccurate at least concerning the United States. Generally speaking, Europe has much higher standards on quality than the United States. In the United States, profit is the biggest driver of the economy and corporate America has demonstrated that lowering quality (cutting cost) is more important than providing quality products or services. To summarize, greed reigns supreme in the United States and corporations often attempt to hide their greed behind a smoke screen of platitudes and finger pointing.
Funnily enough, the quality also differs between the types of sandwiches/burgers WITHIN restaurants in one country, like Poland for example. Once we took a break at McDonald's while getting back from the vet so we took our guinea pig in a transporter inside the restaurant. We ordered a WieśMac (a specialty here, but it's kinda like modified quarter-pounder or however y'all call it) and McCrispy Supreme. We decided to do a little "quality control" with our furry friend, I took out a bit of the lettuce from McCrispy which you can tell is a proper lettuce leaf and she ate it happily. But then we tried to give her a bit of the lettuce from WieśMac (which you could tell was pre-packaged and sliced) and she didn't want to touch it. It was quite funny to see 😆
I visited the US in 2023 for the first time. Of course I wanted to try their McDonalds, after all, USA is its country of origin. But I was surprised how distasteful the Big Mac was! Way greasier, saltier, and the patty was just weird. Which came to me as a surprise, because these things taste indistiguishably the same across European countries.
The best burger i evar had was in a proper restaurant in my hotel on Philadelphia. The worst was in NYC and I remember that the girl that took my order had a BMI which I think was about 40. Standard American Diet is really bad, stay away from it.
Hi, entertaining topic, well researched as usual! It was some time ago when podcasts were new, I heard an interview with a McD's executive who said something along this sentiment: "Since we know that no matter where an american travels in the world he or she will probably go to a McD while abroad, we can charge more at those places." Later in the same interview he mentioned how he knew that in some locations in the world taking your child to a McD's is stil considered a special treat, that is also a reason to charge more, even though labour costs are a lot less than in other parts. It is definitely a prime example of corporate thinking: where can we get more. BTW, they compete with themselves too AFAIK, within the USA: Some other fast-food chains are owned by McDs. So they get the money people think they are not 'giving' to McD. About once in a quarter year, on average, mostly while travelling, I'll go eat there, esp because they are open for bfast before any other place is, and it is still less expensive than a hotel b'fast, or on the road if we see the branch has a Mac Café.
Because of the prices customer numbers where dropping, so MD has started some special offerings again - with good success as per the (one before) last earnings. So it definitely has an effect.
I remember back when McDonalds had no sit down eating and no public restrooms. Fresh potatoes were sliced in the restaurants for the French fries and fresh buns were delivered everyday. The delivery driver used to stack racks of fresh buns, wrapped in thin plastic, outside the rear of the restaurants. Birds would wait for them and tear through the plastic to eat the fresh bread. The first McDonalds I saw with indoor eating, had tall, stand up tables, with no seats, as restaurants with indoor seating required public restrooms, which McDonalds didn't have.
5:51 Of all the trucks it is a old DAF XF105. Have some of those in ETS2, and they are lovely to drive. Love the 3 wipers as well. Yes, Styling is strange, but that makes it unique. I live near Günzburg, Germany, where Lieken and Havi have their factories. Lieken delivers the buns, and Havi delivers the beef. Another factory is further north, producing the nuggets. During one of the tours, one of our students asked how the nuggets where made, and if they were shredded. After a bit of silence the representative said "Yes". Nothing more.
Years ago you could only go to McD or BurgerK if you wanted a burger in Germany. Over the last years so many good and better burger shops and chains have opned that it makes the BigMac look ie taste a little lame. Therefore the consumption of BigMacs is not representative any more , as many people who can afford more, will give the BigMac a miss and buy better quality burgers elsewhere, where they are of course even more explosive. What would be interesting to find out is whether the price of a burger in other burger chains is in any way linked to what McD charge for their BigMc, a bit like all currencies are connected to the Dollar.
I think, in Germany eating at McDonalds or any other fast food restaurant in not perceived as essentials food consumption, but more as entertainment. Germans go to McDonalds to grap a burger after a visit at the cinema, or when walking or driving from one pub to the next. I think, most Germans know, that what they get at McD is rubbish, regardless where it comes from, but together with others we kind of ignore this. Some 15 years ago McDonalds had a much better image, but with the decline of the reputation of the United States in Europe, McDonalds' reputation also nose-dived. And frankly with the prices you mentioned, you can get decent food at the local Pizza-Shop. I do admit, that occasionally, maybe twice a year or so, I stop at McD on the Motorway to grap some Frenchfries to safe some time on the drive through. I am really amazed, that the French are using McD so often... looks like them being gourmets is just a rumor.
Interesting! I live in Sweden and I think many perceive fast food much the same as you. It is acceptable when you meet friends but not on a daily basis. I prefer Kebab which is cheaper and tastier.
I think McDonalds in Germany is more something for kids or teenager. I personally never eat anything at MD but with a 6 year old daughter it can be attractive to buy something when travelling. But I would not even eat home made Hamburger.
In the USA, I'm not sure that we see McDonald's as food. Yes, they have a technically edible product, and yes Ron's Lounge is quite popular- especially with the sort of people who are in a hurry and aren't all that discerning. But nobody I know thinks McDonald's is very good, even amongst hamburger chains, even amongst people who like hamburgers. McD's is seen here as sort of the lowest common denominator of food, the way people might say Coke when they mean any soda pop. Maybe when we were kids we saw McDonald's as something exciting, but when we were kids we also found cartoon shows fascinating. When people grow up - even Americans- we learn to recognize rubbish food as rubbish food. It is not a destination for people seeking a delightful culinary treat. It is seen as a utilitarian food option, a product which, if not exactly nutricious, one can use to stave off hunger for a time. No more, no less.
As a German mom I agree, we only eat that, when we are either traveling or in a social setting (cinema with children, etc). And we actually pay more for McDonald’s than for good Döner/Lahmacun/Mercimek and about the same as for pizza from our local trattoria. It’s a fun thing to do occasionally (about 3 or 4 times a year), but I do prefer other foods.
Way back in the 90’s, when UK supermarket quality assurance schemes started we used to supply beef animals to an abattoir as part of the foyle valley producers group. We had to provide various records for the scheme but one I remember was a declaration that we didn’t use antibiotic additives in cattle feed. It was for flank that was supplied to McDonald’s. None of the supermarkets or butchers were making that check. The individual schemes are now administered by Northern Ireland Food Chain Certification and the antibiotic additives are banned so we don’t see that level of detail at a farm level now.
Hi Ashton, thanx for your videos I really appreciate! As I buy maybe 2 times a year something at MC (and then mostly McNuggets) It doesn't really bother me if the Big Mac costs 5 or 20€, but it is really interesting to see the story behind the business - thank you!
Unfortunately, I can't remember the channel, but some time ago there was a complete price, quality and salary comparison of McDonald's and their products. Apart from that, I can say for Germany that prices are usually increased when the first major salary negotiations with the unions start. Prices are then often increased months before the current wage agreement expires. And this regardless of the industry..
The Darien location is actually a tollroad service area on the Connecticut turnpike. You CAN'T leave the road without paying additional toll to get back on.
German McDonalds Aktionswochen and other Specials make it for me. Internationally I haven't found anything comparable. Except some places in Asia perhaps.
Ashton didn't want to make definitive statements about the comparative quality of BigMacs in the US and Germany because that quality is subjective. Subjectively though all the US expats in Germany I know find McDonald's in the US disgusting but love it here in Germany, so... Do with that information what you will >_>
Another factor in fast food prices is sales taxes. In the UK and generally in the EU, restaurant meals have to pay VAT (20%in the UK). In many US states, no sales tax is payable, making US prices look even worse, especiall as Macdonalds workers are generally better paid in Europe.
Fascinating… I’m in the US and no longer eat at MickeyD’s (cost, health, lack of transparency, corporate greed, etc.)… but this subject is so interesting. And yes, I miss the fries. 🍟
it makes sense that having food sourced locally should correlate with its freshness. Not so sure that local necessarily means higher quality. Something local might just be the best that's available locally, but something better might be further away.
It's a complicated discussion because it is inherently difficult to measure "quality" in the first place. Is quality higher nutritional value? Less preservatives? - the further away an item arguable the more imbedded energy that has to go into transport. Which also usually correlates to foods being picked before peak ripeness in order to survive the transit without spoiling (or the addition of preservatives).
@@TypeAshton yes ok, in this respect I agree, this would be better with local ingredients I was thinking more along the lines of variety. Like back in medieval times, Europe did not have much of a choice when it came to vegetables in winter since not much grows. Now with the option of importing foreign fruits and vegetables, and also growing other plants in Europe than before, the variety of nutrients that you're able to get has increased a lot, thanks to not being limited to local options.
I don't think that a Big Mac was ever representative of the eating habits of average consumers. But I think it still is a useful surrogate for estimating living costs vs average earnings in a country, even though the prices might be partially driven by corporate greed
I went to that McDonalds in 1971 on the first day with my girlfriend. We lived 10 minutes from there in Harlaching. What was definitely different at the beginning, the food probably wasn't really sourced from Germany yet. That all had to get set up and organized, about a year later the food started to taste different, not worse, just different.
I came back from a European vacation last month and was astounded by how much better the Big Macs were over there. They had two nice sized patties with full sized buns. The current US Big Mac has two sad little patties and is mostly bun. Also noticed chicken actually tastes like chicken in Europe. Don’t know what kind of artificially grown and water pumped up chicken we have in the US but it isn’t good.
This reminds me of the Döner-Index, which is an index here in Germany on inflation, economy and rent. It stands as a synonym on how well the average German is off.
Funny you mentioned MD in Martin Luther Stasse in Munich. It happened to be just a few hundred meters from the old Munich 60'ger football aka soccer stadium, where I happened to have one of my best early life jobs ever. Collecting beer bottles from fans around the stadium, during the whole game, because folks just couldn't be bothered to stand in line to collect 60 cents for their three bottles, because people's obsession seems to be first at anything, in this case leaving after a game, only comparable to folks getting into some kind of panic to get up and leave a plane, and getting up, even if the doors of the plane are still closed. Go figure. I am always the last one out. Anyway, we made, and let me put this in some kind of universal currency, around 30 bucks per game, and the Bic Mac was around 89 cents back then. So, doing some quick math, that was around 10 bucks an hour income, and so a Big Mac cost me around 8.9 % of my hourly wage. Not bad, and that went on for a few years, until I decided not to poison my body with that crap ever again. That was 50+ years ago, and I am happy, healthy, and not taking a single drug at 71. Cheers!
Perhaps the smartest move you ever made Peter. The expense of fast food only begins at the drive thru. Anyone that thinks I am wrong - just for an experiment give yourself a 30 day break from fast food and processed food. It takes some effort, but after that 30 days, try a few simple stretches and write down what they felt like, then go back to what you were eating before. In another 30 days try those same stretches and compare what you feel now to those notes. My bet is that you feel sore and stiff from the inflammation. I am not prepared to say there is a conspiracy between processed food manufacturers and big pharma, but at minimum, they are profiting from substituting additives for food and treating the resulting physical repercussions respectively.
@@Ribberflavenous Yes, the old SuperSizeMe story. Same is true for sugar. Our bodies have not evolved for both, and that creates bad results if you consume those things in any greater amount. In Germany there is a series called "Die Ernährungsdocs" and basically the only thing they do is get people on a different diet and their often very severe illnesses nearly disappear.
Big Macs are 100 % Norwegian beef according to the billboards here. Seems to be the bragging point in most places. The burgers are so much better at my local Turkish fast food store, though, as are the fries, but McD will do in a pinch as well :)
Perhaps I missed it but the best reason to buy a Big Mac in Germany is that you can buy a beer with it and for a reasonable price. OK now go on to the other, less important things, like supply, wages, taste etc. etc.
what I think is also a factor is the role fastfood plays in diffrent socitys. I the usa fast food is defently considerd the cheaper option. but in europe not so much. Fast food is more of an includence a decadenc and often costs as much as regular food. which is why the big mac indec must defnetly compared to other indexes to acualy compare purchasing power.
Regarding your doubts about the real origin of the meat, in France in 2013 we had a scandal with a very well-known French frozen food brand "Findus" which sold lasagnas whose meat was supposed to be pure beef. And it was... horse meat! The investigation showed that the origin was Greek, I believe, and had passed through 5 or 6 international traders before arriving in the composition of the dishes at the French Findus factory. The assembly in France allowed them to put the "made in France" label. A small detail that says a lot, in the meat trade profession, they call it "ore"
Fun fact: the first Mc Do in France (that's what they're called here) opened in 1977 in Strasbourg at the "Place des Halles" shopping center. I ate my first Big Mac there, shortly after the inauguration. Bud Spencer was a Guest Star there, a Big Mac in its category!
The rankings of the US costs tend to prove that McD pricing isn't tied to wages. Several other comments hint that it's mostly rent that determine pricing, which I tend to believe, but have no proof to offer.
Here in Germany I visit McD about 2 times a year. I like McD because I know what I get there and the cleanliness is always at an acceptable level. In the USA I got the impression that the furniture in McD restaurants stay much longer in use and are cleaned less frequently. In the places I have been the tables felt greasy. Very disappointing! I observed that Americans make much more use of coupons than we do in Germany. I guess that American customers actually pay a few percent less than indicated on the price tables.
I have read that the McDonalds fries contain 3-4 ingredients in the UK and up to 17 in the USA, including flame suppression chemicals in the deep fat frying oil (which, I am told by hospital biopsy techs, gave me colon cancer 25 years ago.) Yes, I ate there regularly for 5 years. I won't eat there ever again.
I was surprised how low the big mac price is here in Finland. I could have sworn that it was 6.30 eur when I last bought it, but now checking the app, it is only 4.95. And the meal is 9.75. I would buy two burgers rather than a meal tho...
The fact that you work over an hour for a BicMac Meal (potentially longer if you try to take into account the differences in social security) means: You'll be hungry again from the empty calories faster than you could afford the next meal ;-)
I think I ate only 3 times in a McDonalds or similar fast food in all my life. And I'm really annoyed with the people who pick up food there and throw the packaging out of their car along our beautiful countryside.😢
I usually don’t eat fast food, with the exception of breakfast on road trips (then I am tempted to eat a bacon, egg and cheese with a hasbrown). But interestingly, Jonathan and I talked about this exact phenomenon. When we were kids in the States people used to throw trash out of the car window CONSTANTLY. And I’m not saying it doesn’t happen now, but it happens a lot lot less. I don’t specifically recall any kind of initiative or campaign to stop littering, but there must have been one to change the public behavior.
I swear the Big Mac meal in Sydney, Australia, was better than what I had elsewhere. The labels claim everything is Australian origin - wheat, beef, dairy, potatoes and obviously the lettuce. I mostly live in Asia, had McDonald's in US and UK before.
Ashton, it is interesting that you use Atlanta for the comparison. That’s the city of Coca Cola Worldwide headquarters. And even though, the meal in Atlanta is the 2nd most expensive in the list. However, when the comparison is of only the sandwich, Atlanta is 4th out of 5 in the list. For me, that means that the Coke and fries are too expensive in Atlanta.
It probably just comes down to the end Consumer for the fact, that they source and label their produce more localy in Europe due to the Consumer caring more about it than in the US.
Martin Luther Strasse? Back in the summer of 1972, a few weeks before the Olympics, I was taken by some American friends to what claimed to be the "first Macdonalds in Europe". This one was near the Olympic Park, some way from MLStrasse.
I most certainly can confirm that the US Big Mac and most other food sold in grocery stores and restaurants is of less, sometimes even unhealthy bad quality compared to Asia or Europe. It is very common knowlegde in the USA to be prepared for Montezumas Revenge when eating anything not washed and cooked by yourself. In Europe that kind of thing is very rare and if it gets to the ears of the "Gesundheitsbehörden" or the local newspapers, that seller will close shop very fast.
Rarely get Big Mac but before retirement liked the Coffee/Muffin combo. Note In Spain I was surprised to see beer on the menu and had 1 in Toledo as it was the same price as a Coke.
As a veganarian, I have to say that I no longer have any real connection to the BicMac. But I would be interested to know if you have found vegetarian options on the other menus. For me, the current plantbased versions in germany taste really good (burgers and nuggets), the competitors can't compete with that, but would I get the same offer in the US?
Ah interesting question! Beyond a black bean burger order here or there I never really eat out frequently enough to have a preference for vegan/veggie options. But for what it is worth, if you blind folded me and gave me the plant based nuggets at Burger King in Germany, I don’t think I could tell the difference. It’s the one “fast food” option near our house and so there’s been a couple of times I’ve picked those up for my oldest son. He can never tell and neither can I.
@@TypeAshton No need to spend that much money on McD, though. The vegetarian nuggets from Rügenwalder Mühle have a very convincing chicken taste and only require a few minutes in a pan. Pretty much the only fast food item I'm buying semi-regularly.
Wenn du schon zu Veganersekte gehören willst dann bleib auch bei Pflanzen ... dieses künstliche nachgemachte Zeug ist unglaublich ungesund und für die Umwelt schlimmer als jedes Fleisch ... da kannst du auch die billigen zusammengekleisterten Chicken Nuggets vom Aldi/Lidl kaufen und das ist besser für alle ...
Comparing minimum wage really only tells half the story. You should use total cost of labor at minimum wage instead. That would include employer payments to insurance and social security, which are a big factor in France and Germany, coming out to several more Euro per hour that actually get spent on behalf of the employee and which the American employee would be paying out of pocket. Found a number of 23.4% incidental wage costs for Germany. At 12.41€ minimum wage, that is 2.90€ on top. So the real cost to the employer is 15.31€, including all the money the employee receives for mandatory insurance payments. Yes, the employee does not drectly have those in pocket, but they absolutely reap benefits from having health insurance and so on.
All that is unimportant if you want to know how long a MD worker has to work to afford an MD meal. That stuff is in the sale price after all. It is exactly that reason (and the logistics) that make the burger index such a good PPP comparison (relative to effort)
Fascinating. Despite not having bothered eating in a McDonalds in years. The price might look attractive?? But the product disappoints.😮 Enjoy the rest of your day!😊
I'll turn on the deep fryer when I'm hungry, much cheaper if you add it all up. And it saves driving to the MC (fuel costs), you don't have to wait in line and these days they are unclear whether they use serious meat or secretly squeeze in that fake meat.
Did you know, that a person who works in a German "Behindertenwerkstätte" (a workshop for the disabled) would need to work for more than 4 1/2 hours to afford a BigMäc? Not even in a menue. Just the basic burger costs roughly 5,99€ and the average wage in a Behindertenwerkstat is about 1,30€ which is 1/10 of the legal minimum wage!
The last time I ate at McDonald's was over 20 years ago in France with a friend while waiting to go to a movie and most places were closed. It was terrible, about as bad as I had remembered from the US. Why do people eat these Frankenfoods? A quarter-pounder(about 130gms)with nearly 500 calories would be enough for a main dish. Just buy a four-once steak and see how filling it is. Then you add a big fries serving that is about 500 calories and a shake with another 500gms of calories. That is 3/4's of your daily requirement. A lot of that is added sugar and fats, not to mention in the US added ingredients such as dimethylpolysiloxane which is not considered for food in Europe, but is good for making silly-putty.
Hi, Something most US studies that give How long a typical worker in... takes to earn the cost of a Big Mac (or whatever) do. Take the annual earnings for said worker get an weekly wage based on that then divide that by the number of hours worked, giving an hourly wage. Which is fine until you factor in EU and UK workers get holiday pay, often 30+ day.
Interesting. Most US fast food chains live by part time (no benefit) crews and salary management. Do the part time workers get such holiday pay, and I should ask as well if they are more likely to employ full time? I would think full time is more prevalent when medical benefits are not company provided and tied to 30+ hour minimum.
@Ribberflavenous I can only speak for the Netherlands, but part-time workers have the same benefits as full-time workers. Vacation money is a bonus of 8% of your annual income. Most companies pay this bonus in April or May. But in jobs with variable work hours (like fast food joints) it can also be paid monthly, based on the hours you worked that month. Every worker is also entitled to 4 weeks of paid vacation (by law), but most collective bargaining agreements mandate an extra 1-2 weeks. With my current job (insurance company) I also get a 13th month. So an extra bonus of one month's income. Didn't get that when I was still working at Burger King though.
@@Ribberflavenous to answer your question about part-time vs full-time. I worked at Burger King for a while as a student (but I think it's the same for MacD) most employees worked part-time. Most were highschool or university students. We have "youth wages" for people under 23, so they are cheaper. At the restaurant where I worked there were only 4 who worked full-time. That was around 10% of employees.
@@rvdb7363 But that was in a city with university. If you don't have a tertiary education place in the neighborhood of the MD, you don't have that many workers who are ok with 10 hours a week on late hours. They are all sucked up by ALDI&Co ;)
Once saw a documentary about how the potato's for the fries in the US and it was done with an obscene amount of poison. About 20 years ago I went to a McD in the Netherlands and after 1 bite we threw it all away. We only tasted salt, fat and sugar. Never again.
Funny how they proudly present the beef is from Germany. Here in Sweden German beef along with Irish and Danish pork is considered budget meat compared to Swedish that have some of the strictest animal welfare laws in the world. There is much talk about how much antibiotics is in use in Germany and how the cows aren’t all free pasture like here. It doesn’t really affect taste though.
You're right! I can't speak for Denmark, but here in Germany meat production is industrial mass production with all the disadvantages that come with it for quality, animal welfare, environmental protection and drug abuse especially antibiotics. There is a strong lobby of farmers who have a strong influence on politics and, for some incomprehensible reason, have the support of the population, who buy this rubbish and are happy because it's cheap. But the ancient Romans already knew that: "panem et circenses" (bread and games) to keep the population quiet. In Germany it's schnitzel and football.
Haven't been in one in years, but that's little surprise since I have to avoid gluten. The odd time I pick up fries, I prefer burger king, since they are less salty and soggy. I think the comparison is interesting and lacking many chains that have comparable menus across the globe, still makes it a good choice for comparison. I think the only fast food I actually liked was in Japan. Otherwise being faster comes at the price of being that much unhealthier and in most cases you can get a decent meal in a restaurant for roughly the same cost.
Labor cost can't be the reason for the high price in the US. According to google the minimum wage is (per hour) US; 6,96 €, France: 11,65 €, Germany: 12,41 €. My personal theorie (from what I hear and see) is that American companies utilizes the "inflation" since Covid to make mor profit.
In Switzerland they have just reduce the price of the menu medium by 2 CHF (around 2$), now is 13,90 from 15,90 ! Is a strategic reduction becuse the prices of the materials are getting higher.
I would have liked to hear your opinion about the difference of taste between the Big Macs you tried in each of these places. I often hear there are huge differences between countries.
Take a look into law around product/source labeling in the USA… will explain a lot around lack of information. Then take a look whom lobby’s for those laws…
as you mentioned France quite a bit. McDonald's and the French have quite the special relationship that has to be taken into account to understand some context. German RUclips channel Simplicissimus made a video about that
When did fast food ever be about the consumer? It has always been about price, volume of sales and profit. When it started it had a strategy of keeping prices low as it was about growth of the franchise, and thus the volume of burgers sold. But once that growth was coming to the end through saturation of the market, then it was about maximising profit without that impacting the franchise. That means as the statement said - find the best price without a drop in sales volume. It was not a case of thinking about the financial impact on the consumer.
I think just take fast food for what it is a nice thing you can enjoy once in a while but it shouldn’t be the stable of your diet. In the end if I decide to eat at MD I know that this isn’t the most healthy food or socially responsible.
Go to surfshark.com/typeashton for 4 extra months of Surfshark!
The idea of the Big Mac index is actually that it accounts for all sort of cost, but it is of course not very scientific only it is easy, illustrative(since we can all buy a Big Mac) and it does provide some rough ideas when comparing countries.
Never Say NEVER 😎 Justin Bieber
Bieber is of German Ancestry 👀
HINT: "here" is a BAD WAY to say "Germany/Europe"! WORDS ARE IMPORTANT for precision (and I believe you are a "scientist"?).
*_"If you can't say what you're meaning, you can never mean what you're saying. The details [=PRECISE choice of words] are everything!"_* - Babylon 5 ... (which is well worth watching for MANY wise quotable bits).
An important insight on McDonalds as a corporate entity is that they don't actually make their money from selling fast food anymore. Today, McDonalds is essentially a real estate company that rents out restaurant locations to franchise holders. At quite exorbitant rates, usually.
When corporate McDonalds talks about "strategic price increases", they don't mean that they dictated Big Mac pricing at their franchise locations - they mean that they raised rents for their franchise holders, and letting those franchise holders figure out what prices to increase in what ways to make up the shortfall. This of course also contributes greatly to the differences in pricing across countries, or even within regions in a country.
And vast majority of locations is owned by other few large corporations
yeah, "McD HQ makes vast profits on non-food" is not news. I would actually be surprised if they actually made noticeable food money. Then going on about minimum wages in context with that was just... not researched up to channel standard.
i know two especially cheap mcdonalds locations
both of them would loose the majority of their customer base if they raised the price to the level of other mcdonalds because as of now they act as natural gathering points for students
Is it a coincidence that the initials for Big Mac Index is BMI? 🤪
yes 😂
Yes it is a coincidence, nothing to see here, move on!
I had never seen the index expressed in how long an employee would have to work in order to buy a 'meal' and I think this is the best overall comparison I know of to compare economies. There are so many different variables for the sales price that it would be easy to shuffle some data into the weeds to make a particular point. That boils everything down to the practical basis of survival in the food realm. It would be interesting to see this indexed as a percentage of disposable income as well, since infrastructure (public transport/medical/housing) would have dramatic differences between countries.
In America hot dog vendors in stadiums make per hour like 1/5 of price of 🌭
Back in the '68 period, a bunch of leftist splinter groups such as the KBW ( _Kommunistischer Bund Westdeutschlands_ , of which my father was a member), used to develop similar indices, in the case of the KBW the _Schweinskotlettindex_ . That one was based directly on the time an average worker would have to work in order to afford a pork cutlet.
The results, give and take a bit and adjust for all the work being done by volunteers without any funding, tended to be quite, quite, similar to the BMI in the "hours worked" version. And they were surprising, nay, infuriating, when compared to stuff such as stock market prices.
@@MbisonBalrogis a hotdog $75???
@@h4m74ro like $20-30 in some arenas
I only saw the first two minutes of the video and would like to make a comment before watching ... because I happened to discuss the topic with a friend last week.
I admit that I like to eat a BigMac from time to time. And no, they are not comparable!
You can immediately recognize the BigMacs in every country, the basic taste is the same everywhere, but only the BASIC taste. The dining experience of a BigMac is quite different depending on where you buy it. I had the by far worst in Hawaii and the best in the Czech Republic. McDonalds are also different within Germany, but overall much better than in the USA, England or even France.
The difference is extreme with the nuggets, which are actually not eatable in the USA.
So now I will watch the rest of the video!
That’s so fascinating!!! I was personally blown away by the level of transparency. I went into a McDonalds in Switzerland and they had a sign saying the exact farm they sourced their lettuce and cheese from. I know that likely isn’t at every location, but to see that kind of farm-to-table system at a fast food restaurant (especially this one) was mind boggling.
Especially the 50 years record marked by Bavarian pickles brand Develey. They need to be good and competitive, otherwise out of Business
Okay, I'm through. Very interesting. The standard shopping basket is a very good measure of the financial situation in a country. Putting it on an article - even if it is iconic - may be problematic, but it is striking and easy to understand. Therefore, yes, I think that works excellent with the BigMac price. In any case, better than using a 180g beef steak medium-rare ;-)
in connection with the working time that an employee at McDonalds has to spend, this is also thought-provoking. The price for a BigMac menu in Zurich corresponds to a whole "real" meal for me and also here in Bavaria McDonalds seems to me to have become disproportionately expensive, but as a consumer it is also important to me that the people who work there can also live "okay" from their hands work.
For those who look down at McDonalds and do just use the usually clean bathrooms: It has changed a lot - especially in Germany - in system gastronomy and a fresh BigMac from time to time - not as a standard meal - is delicious, really. The fries are better than in most restaurants... I advise you to give it a try.
However, I wouldn't recommend the simple hamburgers/cheeseburgers and some of the really artificial-looking desserts. Also not bad: McCafé
@@TypeAshtonthat sounds like a "only in switzerland" moment though
Depending on the ingredients and the cook quality, they taste differently.
In a strange coincidence, I was in the US (Kansas) last week and did have a Big Mac while visiting. Disclaimer: I am not a regular McDonalds customer, I have another brand that I prefer. The Big Mac meal that I had was not that great. The quality left something to be desired. The sandwich was just OK and the fries were somewhat soggy and poorly cooked. What really surprised me was the price. The meal was $11.67 including tax. Just about 3 years ago it was around $8.00. The same meal where I live in Spain is about $9.80 (converting Euros to $) and the taste and quality are better. Over the years I have had McDonalds in a lot of countries and the flavors a varied greatly. Some have been a little unusual including a slice of beet (beetroot) being offered in Australia and beef not being used in India because of religious reasons. I do find the use of Big Mac pricing as an economic tool interesting. One side note: McDonalds just started offering a Chicken Big Mac in the US. Two breaded chicken patties are substituted for the beef. They are offering it for $5.30 as an introductory price to generate customer interest. I wonder if we will see that soon on this side of the Atlantic soon. Kudos on another interesting video!
Wow that is really interesting (and while I wish I could say the price was shocking, since we were just there too, that price seems pretty standard now). As a family of four. It is tough to spend less than 40 bucks now for a meal for the family at McDondalds. By contrast, for just slightly more, we can dine at our local German Restaurant down the street and have a sit down experience.
Chicken is running around half the price of beef in the US, I am sure they will reflect that cost differential in the chicken Big Mac... wow, I got that out with a straight face.
Any fast food lunch with a drink and a side is $10 or higher here in the US now. I read something not too long ago about a standard Five Guys hamburger meal with fries and a drink that was about $20 now! That's just crazy! Not sure how people can afford to eat out anymore. I certainly can't on my budget.
As always, Ashton, well researched video even if you claim it isn't up to your usual scientific standards. I have to respectfully disagree; even if you can't access the same data sources as larger research institutes your data takes into account more variables than I believe the institutes take even note of.
Both price gouging and profit increases/stock buybacks have led to vast increases on prices/inflation or at the very least to shrinkflation. It was very, very rarely the increases in salaries/wages. I am not saying that increases in wages have _NO_ effect on prices. I would wager that it has a far lesser impact than claimed by many lobbying groups working for the mega companies around the globe. The increase of profit margins is the real culprit for inflation.
As a little anecdote from the early 80's for a certain McD's product in Europe: the quarter pounder.
Initially it was also marketed as "Viertelpfünder" in Germany as well, so a literal 1-1 translation. Soon after it's name was changed because McD's noticed that in Germany _everything_ was regulated to hell and back. Including outdated measurements like the "Pfund". Which was incidentally one-half kilo, or 500 grams. So a beef patty for a German "Viertelpfünder" needed to weigh 125 grams.
However a US customary unit "pound" is merely 453.59237 g in the USA. So the quarter pounder patty in the USA weighs only 114 grams.
While roughly 11 grams difference isn't a lot individually it does add up quite a lot when millions are sold annually. On top of that the fabrication of the patties would have needed to be adapted to the multiple definitions of "pound" the world over. So in Germany the quarter pounder changed its name to Burger Royale. I don't know how it's called the world over. But it definitely does not include any weight definition in its name anymore in Germany.
10000% agree on your assessment on the rise of prices. I think the story on stock buy-backs and investor profit margins is lost on the average consumer. They just see that their prices are rising and the legal conversation surrounding minimum wage, and it is both easy and convenient to lay blame on the workers.
On a smaller anecdote, I am really curious to know why McDonald's in Germany puts way, way, way more condiments (mayo, ketchup) on the burgers than in the USA. You spoke about the differences in the weight of the patty but I wonder why differences also exist with toppings. I have been to numerous locations and every single time it is drowning in condiments. Is this just a consumer preference? I am always too shy and non-confrontational to actually ask that they put less (I just wipe some off when I get to my table). But it is something that has happened enough to where I am curious why it is done that way.
Ashton crunching numbers.
Always interesting.
Glad you enjoyed it Peter! Thanks for watching as always.
In the US the Big Mac probably once was a very cost effective way to get a meal when there were not many other options available. Germany has staple fastfood items like Currywurst or Döner Kebab at almost every corner. And their prices are affordable. So if MacDonald raises prices beyond certain levels here, they just make their customers go to different locations with meals easily as good as a Big Mac or anything they offer. And comparing the quality of a Big Mac and a Döner, well, we know who would win in almost all cases.
I personally am not a Döner fan (I have problems with the size - too big and the sauces), BUT just yesterday I had a Kebab-Wrap (2 meals for me😂) and I would take that over a Big Mac anytime.
Edit: My cat thought I was finished typing, therefore "entered" the comment 😺
Ah, sorry. That does not add up. In the US you have way more competition than just Doener or Currywurst. On any single main road, you have at least 20-30 different fast food places. If what you are saying would be true, and Mc Donalds raises prices, customers would just go to the other options.
@@gloofisearchit's not really a competition when there are usually just a few different fast food chains whose CEOs are all members of the same golf club. Some chains are only apparent competitors e.g. KFC, Pizza Hut, Taco Bell and The Habit Burger, all of which are owned by Yum Brands.
FYI, I'm Dutch and just checked the McD app for prices here in the Netherlands, using (as far as that matters) the location closest to me: 1 Big Mac costs EUR 5,65 and a menu is 10,55.
Well the App is more expensive than the actual locations, another thing is every location here in the Netherlands has different prices, it is known that in Rotterdam the cheapest McDonald's location is in the Netherlands and the most expensive is in Exepensive the €10,95 menu is mostly in Rotterdam (also possible in other locations of course) and the same menu is around €6 more in Enschede
inflation is not driven by labor cost. There were multiple investigations into the inflation during and after COVID and the result overwhelmingly is corporate greed.
I did not investigate this, I just noticed the pattern of the rich "feeling poor" after covid lock down got more greedy and aggressive as soon as the consumer was no longer locked up. Having been locked up only to get robbed by the rich... I'm no communist, but if being rich means you need to rip me off and steal everything... Robin Hood is my hero.
Well, it's the labour cost of those hard-working dollars. :-)
Labor cost is a part of the investigations, but fare from the main reason.
Somehow the bar on the right side has to get bigger, right ?
Wealth Inequality in America
ruclips.net/video/QPKKQnijnsM/видео.html
Wages are lagging indicators. Inflation affects wages more than vice versa.
Fascinating! I admit, for me as a swiss from Zurich, I was kinda stunned from this. We know our Big Macs are the most expensive in the world, but I never realized how little we have to work for one. Also one aspect I kinda miss is the fact that most swiss I talked to don't really see McDonald as a restaurant. Unlike in the USA (I admit I am not expierienced enough to know how other europeans look at McDonalds) where Fast Food is pretty essential i the daily life, here in Switzerland McDonalds is seen as a Novelty. You don't go to McDonalds mainly because you're hungry. You go there because its kinda comfort food. You go to McDonalds with your kids as a reward, young people gather there before or after a night out. Or you get a Burger after a stressfull day. If you are hungry you either go home and cook or go to a real restaurant. And I am guessing McDonalds Switzerland knows that. The prices have risen since I was a kid of course, but not by much. For example, a box of cigarettes are 4 times as much since I was a kid and went to buy them for my Dad. While I was able to afford a Big Mac with my allowance and I'd argue you still can, it is actually cheaper than said box of cigarettes. But, like you said in your video, this isn't a scientifically proofed fact, just the overall feeling I share with most swiss
The cigarette/Big Mac comparison is not a very good one, as cigarettes mainly became much more expensive over time due to higher taxation, not due to higher raw material or labor costs.
@@thegreatxcelerator4224 True. It was just the first thing that came to mind. Although I dont recall milk or other things getting that much more expensive. But that might be with the heavy subsidies the swiss government grants to food producers here. But that's why I aid its more a feeling than scientific ;-)
Here, in the Netherlands the price of a menu doubled in about 4y (since covid). You could have a pretty quick bite that was acceptable for about 7 euro a meal, now it's closer to 15-16 euro a meal. (And the quality or size hasn't improved) It was a habit to get by a drive when on the road to family (as we're on the road during lunchtime), no we just make some bread and eat on the go. (saves 30 min as well as loads of cash)
I'm convinced an index based on of of their burgers (the worst one at that, no taste what so ever) is not a valid indication on how the economics compare per country.
In Germany (and other European countries) we have the so-called 'standard basket' of goods for such comparisons. This contains the things (and the average costs) that a person needs for daily life. Items in the standard shopping basket are (in different weightings) :
* Food, non-alcoholic beverages
* Tobacco products, alcoholic beverages
* Clothing, shoes
* Housing, water, gas, fuels
* Furnishings
* Health, care
* Transportation
* Communication
* Leisure, culture, entertainment
* Education
* Hotels, restaurants
* Other goods and services
The 'purchasing power' results from all these things together with the average salary. this is much more accurate than a “burger index”. This makes it easier to estimate prices (e.g. for a Bigmac).
Congratulations Ashton, almost 100k viewers..
So close. I still can’t wrap my head around it. Thanks for watching and your support!
US + Food = Complicated
Not complicated at all. Take all biological sources out of any food and replace them with crude oil deviratives and sugar. Voila: Big Mäc.
So funny that everything here needs to be FDA certified... and then you find out FDA is a joke.
I think the "Big Mac" index turned out better than most others. It reflects well researched data on how much money can be extracted for convenience food around the world.
Fun fact: Here in Austria, I can feed five people, easily, by throwing €12 worth of frozen friable foods into an air fryer. When I'm not having a party, but some people turn up anyway.
It would be difficult to get a meal and a drink at a restaurant, for a single person, anywhere, at twice the price.
I cannot even remember when I've last been at a McD. Must have been > 3 years ago, last remembering at a Autobahn since there was nothing else I know nearby, and before the way over 10 years ago.
So, for the price, I cannot say, since the quality is not good enough to eat there anyway... Not saying it will never happen in the future again, but not often enough to care about the price :D.
McD started the campaign "XX % Beef from Germany" (I think, it was about 80 to 85 % in the beginning) after the first news pictures of the "mad cow disease" aka BSE came from the UK and many people in germany were worried about getting CJD when eating a burger.
There's a great graph that plots the price increases of McDonalds food items against inflation. At the latest data point the price increase had reached double that of the inflation rate.
My last McDonald's visit is 5 years ago. Any ordinary "Imbiss" here in Germany serves better food that even lasts longer before you get hungry again.
As a fan of this channel and a retired franchisee I have a bunch of thoughts here. What I will add is a little trivia. It was in the late 90’s/early 2000’s that the US and Canadian markets began importing beef from outside the US. In fact, it is my recollection that the cases of beef used to be stamped All American Beef.
Restaurant meal prices are pretty much independent of the ingredients in the meals. Fixed costs make up 80 to 90% of the cost. Things like: rent, property taxes, utilities, insurance (buildings and contents not health) equipment maintenance, depreciation, loan interest and staff costs, which if memory serves is less than the first three things on the list.
In traditional restaurants most profit is made from drinks and this is probably true of MacDonalds given that most soft drinks are just water, corn syrup, CO2 and flavourings.
I'd be interested in seeing a taste test, but I have no idea how this could be achieved!
Very enjoyable and informative, as always. Thanks!
What a perfect timing. Watching the video while eating the Big Mac menu in Germany :)
I worked in fast food decades ago. We considered good fries - served hot and fresh as the key to satisfying customers.
Switzerland is not in the EU. Switzerland, rightly or wrongly, has policies designed to protect local farmers - especially beef producers. This means that Swiss beef is more expensive than elsewhere in Europe but that it is probably impractical for McD to import beef from (say) France.
I rarely ever buy a Big Mac if I happen to go to McD. But I noticed I often compare the price of a McMenu to other options. Like if I buy a menu for me and my retired mom it costs over 20€ at McD. I could get a similar meal at a Döner restaurant for about half the price. The Döner guy is not a magician. He has to buy his ingredients on the market too. But the difference is quite stark.
I eat at McD maybe 2 or 3 times a year so my experience is not really statistically significant
However, here in Switzerland my experience has been much better than America
Disclaimer, in CH I go in off hours which normally forces McD to cook the meal from scratch
As always, great video. I grew up in a small village in Germany, and there was no Mc Donalds anywhere close. When I was 18, we drove between 50-200 miles to get to the next Mc Donalds. The stark difference, because the 200 miles Mc Donalds was open 23 hours a day at Frankfurt Airport;-)
So, as soon as a Mc Donalds opened up just 15 miles from where I lived, I became a Mc Donalds super fan and the Hamburger Royal TS (Quarter Pounder with Cheese, Tomato and Salad), was my goto on a daily basis. Everywhere I traveled in the world, I went to Mc Donalds, yep, I was young and stupid;-)
Nevertheless, the European versions always did beat the US versions, however, the Asian versions were just bad. Once Mc Donalds in Germany changed to make sure that the burgers are no longer stored under the heat lamp, to me, the quality went down, as the burgers were often cold when you got them.
Nevertheless, today, I am no longer eating at Mc Donalds. My last visit is at least 2-3 years ago, just to get some fries for my Steak.
Now, the sourcing of the ingredients is in fact very good in Germany. I remember, a friend of mine worked at Mc Donalds in Emendingen and the Franchise owner went on to get the salad from farmers in the area. They actually really look that they get the best ingredients. In the US, however, the shoppers do not care at all. I asked my family members and they said "I do not care where the stuff comes from".
Hats off to the research going into this video!! I would agree that, at least in the United States, McDonald's is purposefully deceptive in mentioning where they get some of the ingredients. Unfortunately, a lack of transparency is status quo in corporate America these days. More to the point, the Big Mac Index in today's terms, I feel, is woefully inaccurate at least concerning the United States. Generally speaking, Europe has much higher standards on quality than the United States. In the United States, profit is the biggest driver of the economy and corporate America has demonstrated that lowering quality (cutting cost) is more important than providing quality products or services. To summarize, greed reigns supreme in the United States and corporations often attempt to hide their greed behind a smoke screen of platitudes and finger pointing.
Funnily enough, the quality also differs between the types of sandwiches/burgers WITHIN restaurants in one country, like Poland for example. Once we took a break at McDonald's while getting back from the vet so we took our guinea pig in a transporter inside the restaurant. We ordered a WieśMac (a specialty here, but it's kinda like modified quarter-pounder or however y'all call it) and McCrispy Supreme. We decided to do a little "quality control" with our furry friend, I took out a bit of the lettuce from McCrispy which you can tell is a proper lettuce leaf and she ate it happily. But then we tried to give her a bit of the lettuce from WieśMac (which you could tell was pre-packaged and sliced) and she didn't want to touch it. It was quite funny to see 😆
I visited the US in 2023 for the first time. Of course I wanted to try their McDonalds, after all, USA is its country of origin. But I was surprised how distasteful the Big Mac was! Way greasier, saltier, and the patty was just weird. Which came to me as a surprise, because these things taste indistiguishably the same across European countries.
The best burger i evar had was in a proper restaurant in my hotel on Philadelphia. The worst was in NYC and I remember that the girl that took my order had a BMI which I think was about 40. Standard American Diet is really bad, stay away from it.
Hi, entertaining topic, well researched as usual! It was some time ago when podcasts were new, I heard an interview with a McD's executive who said something along this sentiment: "Since we know that no matter where an american travels in the world he or she will probably go to a McD while abroad, we can charge more at those places." Later in the same interview he mentioned how he knew that in some locations in the world taking your child to a McD's is stil considered a special treat, that is also a reason to charge more, even though labour costs are a lot less than in other parts.
It is definitely a prime example of corporate thinking: where can we get more.
BTW, they compete with themselves too AFAIK, within the USA: Some other fast-food chains are owned by McDs.
So they get the money people think they are not 'giving' to McD.
About once in a quarter year, on average, mostly while travelling, I'll go eat there, esp because they are open for bfast before any other place is, and it is still less expensive than a hotel b'fast, or on the road if we see the branch has a Mac Café.
Because of the prices customer numbers where dropping, so MD has started some special offerings again - with good success as per the (one before) last earnings. So it definitely has an effect.
I remember back when McDonalds had no sit down eating and no public restrooms. Fresh potatoes were sliced in the restaurants for the French fries and fresh buns were delivered everyday. The delivery driver used to stack racks of fresh buns, wrapped in thin plastic, outside the rear of the restaurants. Birds would wait for them and tear through the plastic to eat the fresh bread. The first McDonalds I saw with indoor eating, had tall, stand up tables, with no seats, as restaurants with indoor seating required public restrooms, which McDonalds didn't have.
5:51 Of all the trucks it is a old DAF XF105. Have some of those in ETS2, and they are lovely to drive. Love the 3 wipers as well. Yes, Styling is strange, but that makes it unique.
I live near Günzburg, Germany, where Lieken and Havi have their factories. Lieken delivers the buns, and Havi delivers the beef. Another factory is further north, producing the nuggets. During one of the tours, one of our students asked how the nuggets where made, and if they were shredded. After a bit of silence the representative said "Yes". Nothing more.
Years ago you could only go to McD or BurgerK if you wanted a burger in Germany. Over the last years so many good and better burger shops and chains have opned that it makes the BigMac look ie taste a little lame. Therefore the consumption of BigMacs is not representative any more , as many people who can afford more, will give the BigMac a miss and buy better quality burgers elsewhere, where they are of course even more explosive. What would be interesting to find out is whether the price of a burger in other burger chains is in any way linked to what McD charge for their BigMc, a bit like all currencies are connected to the Dollar.
I think, in Germany eating at McDonalds or any other fast food restaurant in not perceived as essentials food consumption, but more as entertainment. Germans go to McDonalds to grap a burger after a visit at the cinema, or when walking or driving from one pub to the next. I think, most Germans know, that what they get at McD is rubbish, regardless where it comes from, but together with others we kind of ignore this. Some 15 years ago McDonalds had a much better image, but with the decline of the reputation of the United States in Europe, McDonalds' reputation also nose-dived. And frankly with the prices you mentioned, you can get decent food at the local Pizza-Shop.
I do admit, that occasionally, maybe twice a year or so, I stop at McD on the Motorway to grap some Frenchfries to safe some time on the drive through.
I am really amazed, that the French are using McD so often... looks like them being gourmets is just a rumor.
Interesting! I live in Sweden and I think many perceive fast food much the same as you. It is acceptable when you meet friends but not on a daily basis. I prefer Kebab which is cheaper and tastier.
I think McDonalds in Germany is more something for kids or teenager. I personally never eat anything at MD but with a 6 year old daughter it can be attractive to buy something when travelling. But I would not even eat home made Hamburger.
In the USA, I'm not sure that we see McDonald's as food. Yes, they have a technically edible product, and yes Ron's Lounge is quite popular- especially with the sort of people who are in a hurry and aren't all that discerning. But nobody I know thinks McDonald's is very good, even amongst hamburger chains, even amongst people who like hamburgers. McD's is seen here as sort of the lowest common denominator of food, the way people might say Coke when they mean any soda pop. Maybe when we were kids we saw McDonald's as something exciting, but when we were kids we also found cartoon shows fascinating. When people grow up - even Americans- we learn to recognize rubbish food as rubbish food. It is not a destination for people seeking a delightful culinary treat. It is seen as a utilitarian food option, a product which, if not exactly nutricious, one can use to stave off hunger for a time. No more, no less.
As a German mom I agree, we only eat that, when we are either traveling or in a social setting (cinema with children, etc).
And we actually pay more for McDonald’s than for good Döner/Lahmacun/Mercimek and about the same as for pizza from our local trattoria. It’s a fun thing to do occasionally (about 3 or 4 times a year), but I do prefer other foods.
As someone in Poland put it: “McDonalds is not a restaurant. It's a store/place for kids to play, while serving food.”
Way back in the 90’s, when UK supermarket quality assurance schemes started we used to supply beef animals to an abattoir as part of the foyle valley producers group. We had to provide various records for the scheme but one I remember was a declaration that we didn’t use antibiotic additives in cattle feed. It was for flank that was supplied to McDonald’s. None of the supermarkets or butchers were making that check.
The individual schemes are now administered by Northern Ireland Food Chain Certification and the antibiotic additives are banned so we don’t see that level of detail at a farm level now.
Hi Ashton, thanx for your videos I really appreciate! As I buy maybe 2 times a year something at MC (and then mostly McNuggets) It doesn't really bother me if the Big Mac costs 5 or 20€, but it is really interesting to see the story behind the business - thank you!
Unfortunately, I can't remember the channel, but some time ago there was a complete price, quality and salary comparison of McDonald's and their products.
Apart from that, I can say for Germany that prices are usually increased when the first major salary negotiations with the unions start. Prices are then often increased months before the current wage agreement expires. And this regardless of the industry..
The Darien location is actually a tollroad service area on the Connecticut turnpike. You CAN'T leave the road without paying additional toll to get back on.
Ah! A real prime location for any food business!
German McDonalds Aktionswochen and other Specials make it for me. Internationally I haven't found anything comparable. Except some places in Asia perhaps.
Ashton didn't want to make definitive statements about the comparative quality of BigMacs in the US and Germany because that quality is subjective. Subjectively though all the US expats in Germany I know find McDonald's in the US disgusting but love it here in Germany, so... Do with that information what you will >_>
Another factor in fast food prices is sales taxes. In the UK and generally in the EU, restaurant meals have to pay VAT (20%in the UK). In many US states, no sales tax is payable, making US prices look even worse, especiall as Macdonalds workers are generally better paid in Europe.
Fascinating… I’m in the US and no longer eat at MickeyD’s (cost, health, lack of transparency, corporate greed, etc.)… but this subject is so interesting. And yes, I miss the fries. 🍟
it makes sense that having food sourced locally should correlate with its freshness. Not so sure that local necessarily means higher quality. Something local might just be the best that's available locally, but something better might be further away.
It's a complicated discussion because it is inherently difficult to measure "quality" in the first place. Is quality higher nutritional value? Less preservatives? - the further away an item arguable the more imbedded energy that has to go into transport. Which also usually correlates to foods being picked before peak ripeness in order to survive the transit without spoiling (or the addition of preservatives).
@@TypeAshton yes ok, in this respect I agree, this would be better with local ingredients
I was thinking more along the lines of variety. Like back in medieval times, Europe did not have much of a choice when it came to vegetables in winter since not much grows. Now with the option of importing foreign fruits and vegetables, and also growing other plants in Europe than before, the variety of nutrients that you're able to get has increased a lot, thanks to not being limited to local options.
I don't think that a Big Mac was ever representative of the eating habits of average consumers. But I think it still is a useful surrogate for estimating living costs vs average earnings in a country, even though the prices might be partially driven by corporate greed
I went to that McDonalds in 1971 on the first day with my girlfriend. We lived 10 minutes from there in Harlaching. What was definitely different at the beginning, the food probably wasn't really sourced from Germany yet. That all had to get set up and organized, about a year later the food started to taste different, not worse, just different.
I came back from a European vacation last month and was astounded by how much better the Big Macs were over there. They had two nice sized patties with full sized buns. The current US Big Mac has two sad little patties and is mostly bun. Also noticed chicken actually tastes like chicken in Europe. Don’t know what kind of artificially grown and water pumped up chicken we have in the US but it isn’t good.
I believe the chicken that McDonald sells in America is more like chicken that is raised for cat food.
This reminds me of the Döner-Index, which is an index here in Germany on inflation, economy and rent. It stands as a synonym on how well the average German is off.
Funny you mentioned MD in Martin Luther Stasse in Munich. It happened to be just a few hundred meters from the old Munich 60'ger football aka soccer stadium, where I happened to have one of my best early life jobs ever. Collecting beer bottles from fans around the stadium, during the whole game, because folks just couldn't be bothered to stand in line to collect 60 cents for their three bottles, because people's obsession seems to be first at anything, in this case leaving after a game, only comparable to folks getting into some kind of panic to get up and leave a plane, and getting up, even if the doors of the plane are still closed. Go figure. I am always the last one out. Anyway, we made, and let me put this in some kind of universal currency, around 30 bucks per game, and the Bic Mac was around 89 cents back then. So, doing some quick math, that was around 10 bucks an hour income, and so a Big Mac cost me around 8.9 % of my hourly wage. Not bad, and that went on for a few years, until I decided not to poison my body with that crap ever again. That was 50+ years ago, and I am happy, healthy, and not taking a single drug at 71. Cheers!
That’s awesome!!!! Very resourceful (and lucrative!)
Perhaps the smartest move you ever made Peter. The expense of fast food only begins at the drive thru. Anyone that thinks I am wrong - just for an experiment give yourself a 30 day break from fast food and processed food. It takes some effort, but after that 30 days, try a few simple stretches and write down what they felt like, then go back to what you were eating before. In another 30 days try those same stretches and compare what you feel now to those notes. My bet is that you feel sore and stiff from the inflammation. I am not prepared to say there is a conspiracy between processed food manufacturers and big pharma, but at minimum, they are profiting from substituting additives for food and treating the resulting physical repercussions respectively.
@@Ribberflavenous Yes, the old SuperSizeMe story. Same is true for sugar. Our bodies have not evolved for both, and that creates bad results if you consume those things in any greater amount.
In Germany there is a series called "Die Ernährungsdocs" and basically the only thing they do is get people on a different diet and their often very severe illnesses nearly disappear.
Big Macs are 100 % Norwegian beef according to the billboards here. Seems to be the bragging point in most places. The burgers are so much better at my local Turkish fast food store, though, as are the fries, but McD will do in a pinch as well :)
Reason is toll barriers on farm products in Norway.
Still like the fact that you call it "here". Since you settled down in Breisgau 😊
Perhaps I missed it but the best reason to buy a Big Mac in Germany is that you can buy a beer with it and for a reasonable price. OK now go on to the other, less important things, like supply, wages, taste etc. etc.
what I think is also a factor is the role fastfood plays in diffrent socitys. I the usa fast food is defently considerd the cheaper option. but in europe not so much. Fast food is more of an includence a decadenc and often costs as much as regular food. which is why the big mac indec must defnetly compared to other indexes to acualy compare purchasing power.
There is a certain irony in talking about quality of big macs in Europe, specially France, where good food is easy to find.
Regarding your doubts about the real origin of the meat, in France in 2013 we had a scandal with a very well-known French frozen food brand "Findus" which sold lasagnas whose meat was supposed to be pure beef. And it was... horse meat! The investigation showed that the origin was Greek, I believe, and had passed through 5 or 6 international traders before arriving in the composition of the dishes at the French Findus factory. The assembly in France allowed them to put the "made in France" label. A small detail that says a lot, in the meat trade profession, they call it "ore"
Fun fact: the first Mc Do in France (that's what they're called here) opened in 1977 in Strasbourg at the "Place des Halles" shopping center. I ate my first Big Mac there, shortly after the inauguration. Bud Spencer was a Guest Star there, a Big Mac in its category!
The rankings of the US costs tend to prove that McD pricing isn't tied to wages. Several other comments hint that it's mostly rent that determine pricing, which I tend to believe, but have no proof to offer.
Here in Germany I visit McD about 2 times a year. I like McD because I know what I get there and the cleanliness is always at an acceptable level.
In the USA I got the impression that the furniture in McD restaurants stay much longer in use and are cleaned less frequently. In the places I have been the tables felt greasy. Very disappointing!
I observed that Americans make much more use of coupons than we do in Germany. I guess that American customers actually pay a few percent less than indicated on the price tables.
One thing that never fails to surprise any first time American visitor to Europe is how much better everything tastes. Including American fast food.
So funny that everything here needs to be FDA certified... and then you find out FDA is a joke.
Wait! Is that a 6-digit number of subscribers? Jeez, IT IS!
Congrats to 100.000 subscribers, Dr Ashton!
I have read that the McDonalds fries contain 3-4 ingredients in the UK and up to 17 in the USA, including flame suppression chemicals in the deep fat frying oil (which, I am told by hospital biopsy techs, gave me colon cancer 25 years ago.) Yes, I ate there regularly for 5 years. I won't eat there ever again.
I was surprised how low the big mac price is here in Finland. I could have sworn that it was 6.30 eur when I last bought it, but now checking the app, it is only 4.95. And the meal is 9.75. I would buy two burgers rather than a meal tho...
The fact that you work over an hour for a BicMac Meal (potentially longer if you try to take into account the differences in social security) means:
You'll be hungry again from the empty calories faster than you could afford the next meal ;-)
I think I ate only 3 times in a McDonalds or similar fast food in all my life. And I'm really annoyed with the people who pick up food there and throw the packaging out of their car along our beautiful countryside.😢
I usually don’t eat fast food, with the exception of breakfast on road trips (then I am tempted to eat a bacon, egg and cheese with a hasbrown).
But interestingly, Jonathan and I talked about this exact phenomenon. When we were kids in the States people used to throw trash out of the car window CONSTANTLY. And I’m not saying it doesn’t happen now, but it happens a lot lot less. I don’t specifically recall any kind of initiative or campaign to stop littering, but there must have been one to change the public behavior.
When I see a pile of small trash on the roadside here in the Netherlands it is mostly fast food wrappers and bags, with macD being the top in litter.
You don't have children, aren't you? The little ones FORCE you to go to fast food Restaurants from time to time!
refuse them like a diplomat, negotiate.
you are the pack leader and they need discipline packed with big love.
@@AlexanderLehmann-c6zhave them watch "supersize me" with you when they are young. It is very effective.
I swear the Big Mac meal in Sydney, Australia, was better than what I had elsewhere. The labels claim everything is Australian origin - wheat, beef, dairy, potatoes and obviously the lettuce. I mostly live in Asia, had McDonald's in US and UK before.
Ashton, it is interesting that you use Atlanta for the comparison. That’s the city of Coca Cola Worldwide headquarters. And even though, the meal in Atlanta is the 2nd most expensive in the list. However, when the comparison is of only the sandwich, Atlanta is 4th out of 5 in the list. For me, that means that the Coke and fries are too expensive in Atlanta.
It probably just comes down to the end Consumer for the fact, that they source and label their produce more localy in Europe due to the Consumer caring more about it than in the US.
Martin Luther Strasse?
Back in the summer of 1972, a few weeks before the Olympics, I was taken by some American friends to what claimed to be the "first Macdonalds in Europe". This one was near the Olympic Park, some way from MLStrasse.
New hair dye ) Looking good as always,Ashton
Thanks! 😊
I most certainly can confirm that the US Big Mac and most other food sold in grocery stores and restaurants is of less, sometimes even unhealthy bad quality compared to Asia or Europe.
It is very common knowlegde in the USA to be prepared for Montezumas Revenge when eating anything not washed and cooked by yourself. In Europe that kind of thing is very rare and if it gets to the ears of the "Gesundheitsbehörden" or the local newspapers, that seller will close shop very fast.
Europeans do not import any fruits and vegetables from Mexico?
@@StevenHughes-hr5hp No, Europeans do not import meals prepared in the US. Mexican produce is not the problem.
@@Llortnerof That is not what Montezuma's Revenge means at all.
@@StevenHughes-hr5hp Montezuma's Revenge is traveler's diarrhea.
That's usually down to food preparation, not where the produce is sourced from.
“Two all-beef patties, special sauce, lettuce, cheese, pickles, on a sesame seed bun.” CRAZY that I remember this from 1974!
Rarely get Big Mac but before retirement liked the Coffee/Muffin combo. Note In Spain I was surprised to see beer on the menu and had 1 in Toledo as it was the same price as a Coke.
Yes, beer is a common baverage at Mc Donalds in Europe
As a veganarian, I have to say that I no longer have any real connection to the BicMac. But I would be interested to know if you have found vegetarian options on the other menus. For me, the current plantbased versions in germany taste really good (burgers and nuggets), the competitors can't compete with that, but would I get the same offer in the US?
Ah interesting question! Beyond a black bean burger order here or there I never really eat out frequently enough to have a preference for vegan/veggie options. But for what it is worth, if you blind folded me and gave me the plant based nuggets at Burger King in Germany, I don’t think I could tell the difference. It’s the one “fast food” option near our house and so there’s been a couple of times I’ve picked those up for my oldest son. He can never tell and neither can I.
@@TypeAshton No need to spend that much money on McD, though. The vegetarian nuggets from Rügenwalder Mühle have a very convincing chicken taste and only require a few minutes in a pan. Pretty much the only fast food item I'm buying semi-regularly.
Wenn du schon zu Veganersekte gehören willst dann bleib auch bei Pflanzen ...
dieses künstliche nachgemachte Zeug ist unglaublich ungesund und für die Umwelt schlimmer als jedes Fleisch ...
da kannst du auch die billigen zusammengekleisterten Chicken Nuggets vom Aldi/Lidl kaufen und das ist besser für alle ...
Comparing minimum wage really only tells half the story.
You should use total cost of labor at minimum wage instead.
That would include employer payments to insurance and social security, which are a big factor in France and Germany, coming out to several more Euro per hour that actually get spent on behalf of the employee and which the American employee would be paying out of pocket.
Found a number of 23.4% incidental wage costs for Germany. At 12.41€ minimum wage, that is 2.90€ on top. So the real cost to the employer is 15.31€, including all the money the employee receives for mandatory insurance payments.
Yes, the employee does not drectly have those in pocket, but they absolutely reap benefits from having health insurance and so on.
All that is unimportant if you want to know how long a MD worker has to work to afford an MD meal. That stuff is in the sale price after all. It is exactly that reason (and the logistics) that make the burger index such a good PPP comparison (relative to effort)
Fascinating.
Despite not having bothered eating in a McDonalds in years.
The price might look attractive?? But the product disappoints.😮
Enjoy the rest of your day!😊
If you are lucky you have a good asien takeout where you can get a huge portion for 4-5€, why should you go to MD????
Very professional, as usual!
Another enjoyable interesting Sunday morning coffee with Type Ashton.
Awesome! Glad you enjoyed the video.
I'll turn on the deep fryer when I'm hungry, much cheaper if you add it all up. And it saves driving to the MC (fuel costs), you don't have to wait in line and these days they are unclear whether they use serious meat or secretly squeeze in that fake meat.
Did you know, that a person who works in a German "Behindertenwerkstätte" (a workshop for the disabled) would need to work for more than 4 1/2 hours to afford a BigMäc? Not even in a menue. Just the basic burger costs roughly 5,99€ and the average wage in a Behindertenwerkstat is about 1,30€ which is 1/10 of the legal minimum wage!
The last time I ate at McDonald's was over 20 years ago in France with a friend while waiting to go to a movie and most places were closed. It was terrible, about as bad as I had remembered from the US. Why do people eat these Frankenfoods?
A quarter-pounder(about 130gms)with nearly 500 calories would be enough for a main dish. Just buy a four-once steak and see how filling it is. Then you add a big fries serving that is about 500 calories and a shake with another 500gms of calories. That is 3/4's of your daily requirement. A lot of that is added sugar and fats, not to mention in the US added ingredients such as dimethylpolysiloxane which is not considered for food in Europe, but is good for making silly-putty.
Hi,
Something most US studies that give How long a typical worker in... takes to earn the cost of a Big Mac (or whatever) do.
Take the annual earnings for said worker get an weekly wage based on that then divide that by the number of hours worked, giving an hourly wage.
Which is fine until you factor in EU and UK workers get holiday pay, often 30+ day.
Interesting. Most US fast food chains live by part time (no benefit) crews and salary management. Do the part time workers get such holiday pay, and I should ask as well if they are more likely to employ full time? I would think full time is more prevalent when medical benefits are not company provided and tied to 30+ hour minimum.
@@Ribberflavenous I believe most UK and EU workers get paid vacation, in UK I think minimum hours are 15 per week, but I could be wrong or out of date
@Ribberflavenous I can only speak for the Netherlands, but part-time workers have the same benefits as full-time workers. Vacation money is a bonus of 8% of your annual income. Most companies pay this bonus in April or May. But in jobs with variable work hours (like fast food joints) it can also be paid monthly, based on the hours you worked that month.
Every worker is also entitled to 4 weeks of paid vacation (by law), but most collective bargaining agreements mandate an extra 1-2 weeks.
With my current job (insurance company) I also get a 13th month. So an extra bonus of one month's income. Didn't get that when I was still working at Burger King though.
@@Ribberflavenous to answer your question about part-time vs full-time. I worked at Burger King for a while as a student (but I think it's the same for MacD) most employees worked part-time. Most were highschool or university students. We have "youth wages" for people under 23, so they are cheaper. At the restaurant where I worked there were only 4 who worked full-time. That was around 10% of employees.
@@rvdb7363 But that was in a city with university. If you don't have a tertiary education place in the neighborhood of the MD, you don't have that many workers who are ok with 10 hours a week on late hours. They are all sucked up by ALDI&Co ;)
Once saw a documentary about how the potato's for the fries in the US and it was done with an obscene amount of poison.
About 20 years ago I went to a McD in the Netherlands and after 1 bite we threw it all away. We only tasted salt, fat and sugar. Never again.
Yea, it is difficult to compare experiences from 20 years ago to now. Salt use has been regulated since then
Funny how they proudly present the beef is from Germany. Here in Sweden German beef along with Irish and Danish pork is considered budget meat compared to Swedish that have some of the strictest animal welfare laws in the world. There is much talk about how much antibiotics is in use in Germany and how the cows aren’t all free pasture like here. It doesn’t really affect taste though.
You're right! I can't speak for Denmark, but here in Germany meat production is industrial mass production with all the disadvantages that come with it for quality, animal welfare, environmental protection and drug abuse especially antibiotics. There is a strong lobby of farmers who have a strong influence on politics and, for some incomprehensible reason, have the support of the population, who buy this rubbish and are happy because it's cheap. But the ancient Romans already knew that: "panem et circenses" (bread and games) to keep the population quiet. In Germany it's schnitzel and football.
10:55 you did do that thumbnail though 😏
the best McDonald's burger I ever had was in Buenos Aires, Argentina. It was 100% Argentinian beef.
Haven't been in one in years, but that's little surprise since I have to avoid gluten. The odd time I pick up fries, I prefer burger king, since they are less salty and soggy.
I think the comparison is interesting and lacking many chains that have comparable menus across the globe, still makes it a good choice for comparison.
I think the only fast food I actually liked was in Japan. Otherwise being faster comes at the price of being that much unhealthier and in most cases you can get a decent meal in a restaurant for roughly the same cost.
Labor cost can't be the reason for the high price in the US. According to google the minimum wage is (per hour) US; 6,96 €, France: 11,65 €, Germany: 12,41 €. My personal theorie (from what I hear and see) is that American companies utilizes the "inflation" since Covid to make mor profit.
In Switzerland they have just reduce the price of the menu medium by 2 CHF (around 2$), now is 13,90 from 15,90 ! Is a strategic reduction becuse the prices of the materials are getting higher.
Good job! Thanks!
I would have liked to hear your opinion about the difference of taste between the Big Macs you tried in each of these places. I often hear there are huge differences between countries.
@Ashton, I hear your question quite rhetorically, and I would agree.
In one country the prices of McDonald's can differ on each location, so how does the index work?
100k soon! Well done, well earned!
Thank you so much for your support and for watching!
Take a look into law around product/source labeling in the USA… will explain a lot around lack of information. Then take a look whom lobby’s for those laws…
as you mentioned France quite a bit. McDonald's and the French have quite the special relationship that has to be taken into account to understand some context. German RUclips channel Simplicissimus made a video about that
When did fast food ever be about the consumer? It has always been about price, volume of sales and profit. When it started it had a strategy of keeping prices low as it was about growth of the franchise, and thus the volume of burgers sold. But once that growth was coming to the end through saturation of the market, then it was about maximising profit without that impacting the franchise.
That means as the statement said - find the best price without a drop in sales volume. It was not a case of thinking about the financial impact on the consumer.
I think just take fast food for what it is a nice thing you can enjoy once in a while but it shouldn’t be the stable of your diet. In the end if I decide to eat at MD I know that this isn’t the most healthy food or socially responsible.
Thank you your research