Fast-food lovers could snap up a discount Big Mac from this morning after McDonald’s announced plans to slash prices on some of its best-loved items.
Chicken McNuggets, Happy Meals and the Quarter Pounder with Cheese are set to come down in price after Rishi Sunak slashed VAT from 20 per cent to 5 per cent.
McDonald’s has announced that it has recommended that franchisees reduce prices on classic menu items – including 50p off its much-loved breakfast meals.
Other prices to come down include a 40p reduction on Extra Value Meals, 30p off Happy Meals, and cuts to the McCafe coffee range.
Yesterday, Starbucks announced it will pass on the 15% discount on coffee in stores while outlets with Starbucks licences can pass on whatever reductions suit their business.
But hospitality and tourism businesses will not be forced to pass on the virus VAT cut to customers.
Chicken McNuggets, Happy Meals and the Quarter Pounder with Cheese at McDonald’s are set to come down in price after Rishi Sunak slashed VAT from 20 per cent to 5 per cent
McDonald’s has announced that it has recommended that franchisees reduce prices on classic menu items – including 50p on its much-loved breakfast meals, the Sun reports
Which businesses will be offering passing on VAT reductions?
Businesses that WILL offer a VAT reduction:
Businesses that WON’T offer a VAT reduction:
The National Gallery
Businesses yet to confirm whether they will pass on the VAT reduction:
Pret A Manger
Center Parcs, Hoseasons and Haven have been challenged to pay a refund of VAT or reduce prices, but they have not yet given any commitment.
Malcolm Bell, chief executive of Visit Britain, said the chancellor’s move was to support business, not help holidaymakers.
He told the BBC tourists had called firms and asked for 15% off their holiday booking.
‘My message to customers is this is to help the businesses, not to reduce the cost of their holiday. It is only a temporary relaxation up to January,’ he told the BBC.
Many attractions such as museums, parks and zoos, may also not pass on the reduction.
Merlin Entertainments, which runs Legoland, Alton Towers, Thorpe Park, Chessington World of Adventures, Warwick Castle, Madame Tussauds, Sea Life centres, and many others – said the VAT cut was a ‘welcome step’ but it remains unclear if it has cut the cost of tickets to its attractions.
The move will make no difference to entry prices to London Zoo because, as a charity, there is no VAT on tickets.
The National Trust said it was ‘reviewing the announcement.’
The National Gallery said that tickets to its Titian exhibition would not fall in price following the cut, because it had ‘lost a lot of money as a result of the lockdown’.
Pizza Hut said it was ‘studying the detail of the cut and working out how to respond to it.’
Restaurant chain Wahaca will however be passing on the cut, with its popular fish taco dish dropping in price from £6.95 to £6.10.
Waitrose will also reduce prices in its cafes.
KFC is slashing the price of its boneless bucket for a few days in celebration of the VAT cuts, with a ‘Bonehead Budget Bucket’ comprising ten mini fillets costing £4.99 instead of the usual £10.
KFC will also offer £1 off sharing buckets and 50p off other menu items.
At McDonald’s, items such as desserts and cold drinks will remain the same price, and prices will not be dropped on McDelivery services.
Customers have also been told to check prices, because many McDonald’s restaurants are franchised, meaning the franchisee has the ultimate say over prices.
McDonald’s also announced it has reopened four of its restaurants for dine-in customers across the UK and Ireland to test safety procedures.
The fast food giant said the move will see restaurants reopen with table service only, reducing capacity by as much as 70% to enable social distancing.
Hand-sanitising stations, floor markings and Perspex screens will be in restaurants with increased cleaning at touchpoints and seating areas.
Paul Pomroy, McDonald’s UK & Ireland chief executive, said: ‘We are working to reopen our dine-in restaurants when we are confident we can adhere to the government guidance, which enables our teams to work and customers to visit safely.’
The chain is said to be testing this week how to reopen outside seating areas with more details to be revealed later this week.
The move comes after Chancellor Rishi Sunak announced plans to cut VAT to 5 per cent for businesses in the tourism and hospitality trade.
Pub giant Wetherspoon revealed this week that it will reduce prices on meals and drinks following the Government’s decision to cut VAT on food, coffee and soft drinks.
The chain, which has 867 pubs, has also produced posters praising Chancellor Rishi Sunak as a ‘legend’ after the decision to reduce VAT from 20 per cent to 5 per cent.
Wetherspoon, which has 867 pubs, has produced posters praising Chancellor Rishi Sunak as a ‘legend’ after the decision to reduce VAT from 20 per cent to 5 per cent
Breakfasts will be reduced to £3.49, down 41p; pizzas including a soft drink will start from £5.49, down 66p; and burgers and a drink will start from £4.99, down 66p
Messages including Sunak’s Specials and Dishi Rishi will be displayed alongside details of lower prices on some drinks and food in place from this Wednesday.
The company, which was founded in 1979, said it will fully pass on the tax cut to its customers, including real ale, coffee, soft drinks, breakfasts and other food.
At 764 of its pubs a pint of Ruddles Bitter will now be £1.29, down 50p on average; while a Doom Bar will be £1.79, down 31p; and Abbot Ale will be £1.99, down 40p.
Lavazza coffee and tea will be reduced to £1.29, down 16p on average; and it will be £1.69 for a 14oz glass of Diet Pepsi and £1.79 for standard Pepsi, down 11p.
Prices for real ale will be up to £1 higher at the company’s other 103 pubs across the UK, which are located in major town and city centres, airports and stations.
Other fast food chains to announce price cuts include KFC, which is set to cut its boneless bucket from £10 to £5.