If you’ve noticed that grabbing a Big Mac in New Jersey lightens your wallet more than in other states, you’re not alone. New Jersey ranks the eighth most expensive state for McDonald’s menu prices, with costs approximately 7.3% above the national average.
Several factors contribute to these higher prices.
New Jersey’s cost of living is notably high, impacting expenses such as rent, utilities, and wages for McDonald’s outlets. Franchise owners adjust menu prices to cover these increased operational costs.
Competitive labor markets in New Jersey necessitate higher wages to attract and retain employees. These increased labor expenses are often reflected in menu pricing. Minimum wage in New Jersey is over $15 per hour. Just across the Delaware River, the minimum wage is $7.25 in Pennsylvania.
High demand in densely populated areas allows for greater pricing flexibility. McDonald’s may set higher prices in New Jersey, anticipating that consumers are willing to pay more for convenience.
In summary, the combination of elevated operating costs, labor expenses, supply chain factors, and strategic pricing decisions contribute to the higher McDonald’s menu prices observed in New Jersey compared to other states.