Overview
- Germany permanently reduced VAT on food consumed on premises to 7% from 19% starting January 1, 2026.
- McDonald’s says it passed part of the tax relief to customers by cutting recommended prices on five popular menus, in some cases by more than 15%.
- New guidance lists a Big Mac menu at €9.99, a Happy Meal at €4.49, and McSmart combinations between €4.99 and €7.99, with prices still varying by location.
- The company frames the reductions as support for families and budget-conscious guests, while a Gastroportal Düsseldorf post criticized the move as aggressive pricing that squeezes independents.
- Experts cited in coverage expect limited price declines across the wider restaurant sector, which remains under pressure per 2025 Destatis data, as McDonald’s plans future changes to its German store network.