VAT Cut Triggers Selective Price Drops at Fast-Food Chains in Germany
Critics say the relief favors large operators over small restaurants.
Overview
- Germany made the 7% VAT for on-site food permanent on January 1, 2026.
- McDonald’s lowered five popular menus, with some cuts exceeding 15%, listing new prices such as Happy Meal €4.49 and Big Mac menu €9.99.
- Nordsee introduced a nationwide uniform price of about €8.99 for its Backfisch-Menü, down from roughly €9.99 to €11.49 depending on location.
- KFC says it will pass on the tax reduction only within an economically reasonable scope for items like Hot Wings and corn, without disclosing new prices.
- Foodwatch estimates the policy chiefly benefits large chains (about €140 million annual relief for McDonald’s and €500 million for the sector), while most small restaurants have not reduced prices and some customers allege shrinkflation or “Mogelpackung.”