Bun-believable: Fast-food prices rise sharply in Czechia

According to a recent analysis by online payment company Patron GO, prices at Czechia’s most popular fast-food chains have shot up in the past year due to inflation and rising operational costs. McDonald's, for instance, increased the price of a cheeseburger to CZK 42, which is a fifth more than in 2022, and more than double the price a decade ago. In late 2017, it was just CZK 25. 

Additionally, the popular Big Mac burger has seen as many as three price increases since last January, rising from CZK 89 to CZK 105 at most outlets. According to The Economist’s 2023 Big Mac Index, when adjusted for purchasing power, the popular burger is more expensive in Czechia than it is in Singapore or South Korea.

KFC, similarly, has bumped up its prices since 2022. "Increasing prices of raw materials, energy prices, growth in labor costs, and the lack of people on the labor market must be taken into account,” according to Libor Hubík, director of the KFC brand for Czechia, Austria, and Germany.

Higher fast-food prices have caused Czech consumers to spend more. Patron GO’s research shows that customers visiting restaurants offering fast food spent an average of CZK 189 per visit, indicating a 6 percent year-on-year increase.

Fast food chains generally have a strong position in the Czech Republic. According to available surveys, almost 30 percent of people eat there several times a month. The majority of customers are people in the 15-34 age group.

In contrast, customers are spending less per visit at non-fast-food restaurants, indicating that prices at these establishments may not have grown as much. The average expenditure in traditional restaurants fell to CZK 206 in the second quarter of this year, compared to CZK 219 in the same quarter of last year.

Moreover, the average food-delivery order now costs CZK 427, up from CZK 367 last year. Notably, this increase is predominantly associated with major fast-food chains such as McDonald's, KFC, and Burger King, while other fast-food restaurants maintained similar spending levels to the previous year.