It stands to reason that if you pay more for ingredients, you are going to pay more for the food made from those ingredients. Now, the Golden Arches is getting ready to super-size some of its menu prices.
Economists with Wells Fargo Securities believe food prices could increase as much as 5 percent this year due to demand exceeding supply and rising energy costs. Food staples like flour, grains and dairy. That is having a ripple effect, which will ultimately impact consumers.
McDonald's Corp has announced that it is increasing the cost of some menu items to offset the cost of its food supplies. McDonald's CFO said the fast-food giant would "raise prices where it makes sense" but that they would be careful not to turn off customers with these higher prices.
And while McDonalds is the biggest restaurant chain in the world, this is an economic issue that is affecting restaurants of all sizes.
"It' can be difficult to make ends meet. Things fluctuate, the price of produce goes up and down based on the weather. Sometimes my flour has been outrageous," said Cheryl Duffy, owner of Jammin' Bread, a sandwich and salad restaurant in Riverside.