---
title: McDonald's Hits Price Wall with All-Day Breakfast Pricing
description: McDonald's recently increased the price of its breakfast hash brown with 25c. This small price increase, however, turned out to be a big deal to some customers.
image: http://blog.pricebeam.com/hubfs/Blog/mcdonalds.jpeg
---

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 April 10, 2017

# McDonald's Hits Price Wall with All-Day Breakfast Pricing

![Picture of PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/Images/PBLogoBadge240x240.png?width=50&name=PBLogoBadge240x240.png)    PriceBeam  ·   1 minute read

![mcdonalds.jpeg](http://blog.pricebeam.com/hs-fs/hubfs/Blog/mcdonalds.jpeg?width=770&height=513&name=mcdonalds.jpeg)  
McDonald's recently increased the price of one of its most popular breakfast items - the Hash Brown - from $1.95 to $2.20. A 25c price increase that has spawned a series of negative comments from customers in newspaper articles and on social media. A lot of these comments include some variation of the sentence *"How can McDonald's justify charging more than $2.00 for a hash brown?"*  
This is a quintessential example of a *price wall*, which McDonald's has now hit. There is clearly a pain point at $2.00, and even a negligible 25c price increase will trigger customer uproar and decrease sales quite substantially. 

There are a variety of pricing research methods out there which incorporate a search for price walls into its methodology. If McDonald's had based its price increase on consumer insight, the company would be able to predict such a reaction. 

Of course, it is possible that McDonald's did just that. Every price increase will render the more price-sensitive customers unhappy, and trigger some kind of reaction - and maybe McDonald's deemed it was worth to ditch this **[price-sensitive customer segment](https://blog.pricebeam.com/moral-hazard-in-pricing-do-you-know-your-customers-price-sensitivity) **to increase per-unit profits by 25c.

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