
Does Pricing Consistency Still Matter Across Franchise Locations? đ
McDonaldâs allows flexible pricing across its global franchise network. Sounds reasonable, right? But it also creates problems for pricing consistency.
A dad in the US found out the hard wayâhis US$20 wasnât enough to buy a 10âpiece Chicken McNuggets meal at an airport McDonaldâs. Meanwhile, back in Australia, customers noticed something odd: a cheeseburger costs $5, while a hamburgerâidentical, minus the cheeseâis just $2. Thatâs a $3 slice of cheese.
These stories go viral for a reason. Theyâre not just about pricingâtheyâre about confusion. And that confusion exposes a bigger question: Does flexible franchise pricing erode your value proposition?
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The Case for McDonald’s Flexible Price Policy
To answer that, we have to start with why pricing flexibility exists in the first place.
Franchisees operate in different environments. They face different rent, wages, ingredients, and local competitors. So they need flexibility.
In Australia, franchisees adjust pricing for items like the Happy Meal or McSmart Meal to stay competitive and maintain margins. It makes sense. Theyâre responding to local realities.
But thereâs a catch. Flexibility without guidance turns into inconsistency. And a lack of pricing consistency weakens the brand.
Without clear boundaries or a shared pricing policy, even small price differences across locations can damage customer trustâespecially when branch pricing feels unpredictable or unfair.
The Risk Misaligned Global and Branch Pricing Policy
Thatâs when the trouble begins.
When pricing varies too much, customers notice. And when they donât understand the logic, trust erodes.
People start sharing âprice hacksâ online. They compare menu prices across suburbs. They laugh. But underneath the jokes is doubtââAre they charging me fairly?â
This hurts loyalty. It undermines the brandâs promise of pricing consistency and reliable value.
And the worst part? The customer starts driving the narrative, not the business. Without a clear global pricing policy or framework for branch pricing, even well-meaning flexibility can backfire.
What the Parent Brand Must Do
So, what can franchisors do to stay ahead?
The parent companyâs role isnât to dictate exact prices, but to set the rules of the game.
That means creating clear pricing principles. Set guardrailsâminimums, maximums, or logical price-to-value relationships that support pricing consistency.
Use tools to monitor branch pricing behaviour across regions. Benchmark performance. Run behavioural tests. These systems build trust and fairness.
Research supports this: even simple, well-defined guidelines help franchisees stay aligned with brand values and customer expectations.
But thatâs only half of the equation.
What Franchisees Need to Own
Franchisees have to own their local value story. If their prices are higher, they need to explain why.
Maybe rent is higher. Maybe staffing costs are up. Thatâs fine, but customers need to see the connectionâand how it fits within the brandâs broader pricing consistency.
Franchisees should also watch local competitors closely. And they must communicate clearlyâthrough signage, social media, or simply well-trained staffâwhy their pricing still delivers value, even under a flexible pricing policy.
Thatâs how you turn a potential complaint into credibility.
Can Pricing Consistency Have Flexibility?
So, where does that leave us?
Thereâs a sweet spot between strict control and total chaos. We call it: âFlex, but donât drift.â
Give franchisees the space to adaptâbut within brand-aligned boundaries that support pricing consistency.
Franchisors provide the strategyâthrough a clear global pricing policy. Franchisees apply it locally. This keeps the overall value promise intact.
And when done right, it delivers what matters most to customers: transparency, predictability, and fairness.
What Value Does Pricing Consistency Bring
If pricing consistency goes unchecked, itâs the customerânot the brandâwho takes control.
Thatâs not just a lost sale. Itâs a missed opportunity to reinforce trust.
Franchisors and franchisees need to work as partners. Not competitors. Not independent operators.
Because pricing isnât just about margin. Itâs about the message. Itâs your brandâs loudest promise.
Executives must implement pricing governance. Are you providing clarity or allowing chaos? Set pricing principles that protect your brand while allowing room to flex. Define what the pricing policy really stands forâand stick to it.
Franchisees must not just respond to costs; lead with value. Own your pricing. Communicate it. Show your customers that price still means something.
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Rethinking Pricing Consistency Policies
Not sure whether your pricing strategy builds trust or chips away at it? Youâre not alone.
Many franchisors and franchisees wrestle with the same problem. But you donât have to work it out in isolation.
Letâs talk about what works best for your businessâwhere to flex, where to hold firm, and how to restore pricing consistency across your locations. Together, we can clarify what the pricing policy should look likeâone that feels fair, clear, and aligned with the value you deliver. Reach out if youâd like to explore a strategy that works for both you and your customers.
For a comprehensive view of maximising growth in your company, download a complimentary whitepaper on How to Maximise Margins with Price Trials.
Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 9000 1115.
You can also email us at team@taylorwells.com.au if you have any further questions.
Make your pricing world-class!
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