Cost of fast food items remains the same regardless of the country it's in?

[Howitzer]

I noticed that fast food prices more or less remain the same prices as the country they originated from no matter which country they are located in.

So let's say an oridinary macdonald's meal costs say maybe 7USD and it's going to cost 230THB in thailand they aren't going to lower the prices.

Is there a reason why it's done like this?

[lopburi3]

Actually it is not done like that and there is a whole economic survey (BigMacIndex) based on cost of such meals in various countries. Current January index shows a range from $1.20 to $7.54 for a Big Mac.

http://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/

[Rooo]

Moved to Expat Forum.

[Ricardo]

"let's say an oridinary macdonald's meal costs say maybe 7USD and it's going to cost 230THB in thailand"

Except that a Big-Mac Set is only B159, at my local branch, which is $4.88 ... so you're starting from a false premise, anyway.

Then ingredient-costs, labour-costs & overheads like shop-rental vary widely, round the world or even within a country.

And the ability of potential-customers to afford to pay the US-price surely varies too ? Why would an Ethiopian (plucking an example at random ... no offense intended) have the same spending-power as a Swiss or Norwegian ?

It's a bit of a fallacy to assume that selling-prices are set on a cost + profit-margin basis, it would be more market-driven than that, although selling at below cost-price would be a short-term strategy most times.

Edited February 13, 2015 by Ricardo

[Sandman77]

In Russia Big Mac is cheapest but quality may in diffrent country's not same

[CPH]

Comparing land prices, salaries, ingredient costs etc between Thailand and the US I would say that Mc Donalds are over priced in Thailand. Maybe that is the reason why the restaurants are often half empty.

[steve187]

Comparing land prices, salaries, ingredient costs etc between Thailand and the US I would say that Mc Donalds are over priced in Thailand. Maybe that is the reason why the restaurants are often half empty.

Yes but they are half full as well,

all western food in Thailand is expensive, as are the cars.

[BKKBobby]

Burger King prices feels like legal robbery in Thailand. But if you compare to the country I come from it actually isnt.

Edited February 13, 2015 by BKKBobby