On the customer end, it comes down to perceived value – if they still believe the food and experience is worth the higher price, they may continue to be loyal customers. However, if they don’t see the value or have other lower-priced options to choose from, they may decide to dine elsewhere.
This principle applies to any business, not just McDonald’s. It’s a delicate balance that each company must manage in relation to its specific circumstances and customer base.
Please note that this is a simplified explanation and the actual decision-making involved in pricing strategy is much more complex.