The Japanese fast food outlets of McDonald’s are all set to hike the prices of some of their burgers. The food giant will be hiking the prices by as much as 25 percent from next month. This will also mark the first increase in the country since the year 2008.


Prices of the company’s hamburger are expected to go up to ¥120 from ¥100, while the prices of cheese burgers will go up to ¥150 from ¥120 in Japan, from the month of May 2013. McDonald’s said in a statement on April 18, 2013, that the hike is a part of the company’s plan to boost profitability, instead of a rise in material prices.

McDonald’s has decided to hike the prices after the Japanese unit reported a 12 % downfall in the operating profit last year. Discounts in the month of March 2013 had led to sales going down by 3.6 percent. McDonalds will also be hiking the price of its small shake to ¥120 from ¥100, while prices of fries will come down to ¥150 from the earlier range of ¥190 to ¥230.

The recent price changes were tested in the month of January 2013. Kenji Kaniya, the spokesman of the company, said that the new pricing was judged while taking a balance between the customer satisfaction and profitability.