McDonald’s 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 way—his US$20 wasn’t enough to buy a 10‑piece Chicken McNuggets meal at an airport McDonald’s. Meanwhile, back in Australia, customers noticed something odd: a cheeseburger costs $5, while a hamburger—identical, minus the cheese—is just $2. That’s a $3 slice of cheese.
These stories go viral for a reason. They’re not just about pricing—they’re 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. They’re responding to local realities.
But there’s 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 trust—especially when branch pricing feels unpredictable or unfair.
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The Risk Misaligned Global and Branch Pricing Policy
That’s when the trouble begins.
When pricing varies too much, customers notice. And when they don’t understand the logic, trust erodes.
People start sharing “price hacks” online. They compare menu prices across suburbs. They laugh. But underneath the jokes is doubt—“Are they charging me fairly?”
This hurts loyalty. It undermines the brand’s 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.
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What the Parent Brand Must Do
So, what can franchisors do to stay ahead?
The parent company’s role isn’t to dictate exact prices, but to set the rules of the game.
That means creating clear pricing principles. Set guardrails—minimums, 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 that’s 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. That’s fine, but customers need to see the connection—and how it fits within the brand’s broader pricing consistency.
Franchisees should also watch local competitors closely. And they must communicate clearly—through signage, social media, or simply well-trained staff—why their pricing still delivers value, even under a flexible pricing policy.
That’s how you turn a potential complaint into credibility.
Can Pricing Consistency Have Flexibility?
So, where does that leave us?
There’s a sweet spot between strict control and total chaos. We call it: “Flex, but don’t drift.”
Give franchisees the space to adapt—but within brand-aligned boundaries that support pricing consistency.
Franchisors provide the strategy—through 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.
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What Value Does Pricing Consistency Bring
If pricing consistency goes unchecked, it’s the customer—not the brand—who takes control.
That’s not just a lost sale. It’s a missed opportunity to reinforce trust.
Franchisors and franchisees need to work as partners. Not competitors. Not independent operators.
Because pricing isn’t just about margin. It’s about the message. It’s your brand’s 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 for—and 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? You’re not alone.
Many franchisors and franchisees wrestle with the same problem. But you don’t have to work it out in isolation.
Let’s talk about what works best for your business—where 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 like—one that feels fair, clear, and aligned with the value you deliver. Reach out if you’d 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.
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