McDonald’s and Starbucks have found themselves in the midst of public relations controversies, with reports of significant price hikes and various challenges affecting the two global restaurant giants. McDonald’s is refuting claims of a 100% menu price increase, while Starbucks is grappling with boycotts, unionizations, and criticism from its former CEO.

As inflation remains a concern, both companies are also facing a decline in consumer demand, as highlighted in their recent quarterly earnings reports. In response, they have been making efforts to improve their public image.

In a recent open letter, Joe Erlinger, McDonald’s U.S. president, addressed the reports of price hikes, stating that they are inaccurate and that the chain has only raised prices by an average of 40%. He attributed the need for price adjustments to inflationary pressures, the challenges posed by the global pandemic, supply chain disruptions, and wage increases.

However, this PR strategy by McDonald’s has been deemed unusual by industry experts. Jerry Sheldon, vice president of technology at IHL Group, noted that it is uncommon for a retailer to push back against such claims. He expressed concerns that the response from McDonald’s could be perceived as out of touch with consumer sentiment.

Despite these challenges, both McDonald’s and Starbucks are striving to navigate the complexities of the current economic landscape. While McDonald’s aims to reassure customers about its pricing policies, Starbucks is engaging in negotiations with its workers’ union amidst various operational issues.

With the ongoing uncertainties in the market, the actions taken by these restaurant giants will be closely watched as they seek to address the evolving demands of consumers and the broader economic environment.