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How McDonald’s prices Big Mac meal across the World

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Burger giant McDonald’s has differential pricing for its hot-selling Big Mac or Maharaja Mac as it’s known in India, finds Market Brew by Tata Fintech.

IndiaRetailing Insights: In a world connected by global brands and products, few items embody economic globalization like McDonald’s Big Mac. Originally launched in 1968, the Big Mac has become not just a fast-food staple but a unique economic indicator, giving insights into global purchasing power through the ‘Big Mac Index’.

The data by Market Brew by Tata Fintech, a Mumbai-based financial service reveals significant price differences for a Big Mac meal package (which includes fries and a Coke) across the world. At one end of the spectrum, Switzerland ranks as the priciest, with the package costing an equivalent of Rs 1,277.2, or about $8.07 and at the other is Egypt, where the same meal costs only Rs 173.4 ($1.10).

In the middle of the range lies the United States, the birthplace of the Big Mac, where the package price is approximately Rs 1,016.3. France, another developed economy, comes close with a price tag of Rs 1,055.5. These prices reflect stable, high-income markets where purchasing power is strong and the cost of living is relatively high.

On the lower end, India and Japan offer the Big Mac meal for around Rs 516.9. The pricing in these countries reflects both competitive market strategies and the influence of local purchasing power.

While the Big Mac is a global product, it has also been adapted to suit local tastes. In India, for example, the Big Mac is substituted with the Chicken Maharaja Mac to cater to cultural dietary preferences, with beef absent from Indian fast food due to religious considerations. This adaptation provides an interesting angle on how global brands localize their offerings while maintaining a consistent brand identity.

The Big Mac Index, introduced by *The Economist* in 1986, is a tool to compare the cost of living and economic health between nations. It uses the Big Mac price as a benchmark for the purchasing power parity (PPP) theory, which posits that in an efficient market, identical goods should have the same price across countries.

The highest Big Mac prices in countries like Switzerland indicate strong currencies and high standards of living but also highlight the high cost of services and goods. In contrast, lower prices in countries such as Egypt and Mexico suggest lower average income levels and purchasing power.

The Numbers at a Glance

Highest Big Mac price: Switzerland at Rs 1,277.2 (~$8.07)

Lowest Big Mac price: Egypt at Rs 173.4 (~$1.10)

Other notable prices
  • France: Rs 1,055.5
  • United States: Rs 1,016.3
  • Italy: Rs 798.7
  • Saudi Arabia: Rs 711.1
  • Mexico:  Rs 546.1
  • India & Japan: Rs 516.9
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