British McDonald’s in turmoil – new rivals, old problems

Once euphoric, now disillusioned

When the first McDonald’s opened in the UK in 1974, thousands of Britons lined up to try the iconic American burger. The fast-food chain has since built a nationwide presence: it boasts nearly 1,500 restaurants and an annual revenue of nearly £2 billion (approx. 930 billion forints). Yet by 2025, the attention and loyalty of the British public have noticeably waned.

There is more than one reason behind the declining sales. According to experts, McDonald’s is stuck in the middle of the market: it is no longer cheap enough for price-sensitive guests, but not “trendy” enough for young people who are looking for new, “Instagram-compatible” restaurants.

Prices beyond the pain threshold

The company’s CEO, Chris Kempczinski, has openly spoken about how the performance of the British subsidiary is hurting global results. One of the main reasons: price increases. The price of a Big Mac was 2.99 pounds (about 1,400 forints) in 2020, but by 2025 it had risen to 4.89 pounds (2,312 forints) – an increase of almost 64% in five years. McDonald’s typically attracts lower-income consumers, so even a small price increase would have a significant impact on its core audience.

Scandals and public opposition

The brand’s reputation has been tarnished by several serious cases. More than 100 sexual harassment complaints are being investigated in UK restaurants. The company has also faced international criticism for its Israeli franchise partner providing free meals to the Israeli army – following the boycott campaign, McDonald’s has bought back its Israeli interests globally.

Changes to the consumer experience – such as the rise of self-service kiosks – have made the restaurant experience feel cold for many. The massive presence of delivery drivers has sparked public protests in several areas. In Fulham, for example, a local campaign has been launched against 24-hour opening hours.

Development and expansion – whatever the cost

Despite the difficulties, McDonald’s is not backing down: by 2028, it plans to open another 200 restaurants in the UK, with an investment of around £1 billion and the creation of 24,000 new jobs. The company believes it can regain its position in the long term – but the question remains: will the volume and investment be enough to reshape the brand?

A new competitor from the neighborhood – Taco Bell is approaching

While McDonald’s seeks to stabilize in Great Britain, a new rival has emerged in the region: Taco Bell, owned by Yum! Brands – which has built a serious fan base in the US – has now begun its expansion in Croatia and Slovenia with the support of €9.9 million from the EBRD.

The project aims not only to open new fast food restaurants, but also to create jobs and promote a green economic transition along the principles of the circular economy. Taco Bell is already present in Romania, and according to industry expectations, Hungary may also be targeted sooner or later.