Articles

The Truth About BigMac

In Economy on November 13, 2007 by Petr Bokuvka Tagged: , ,

According to the BigMac index, this burger is now more expensive in the Czech Republic than it is in the United States, iDNES.cz news server did the math and wrote.

This article quotes an economist who says something that should have been said a long time ago: The reason why McDonald’s fast food is so expensive in the Czech Republic is that the company has become “a better place to eat” from the beginning. Some sort of a cult place [?]. A place where parents take their kids to eat on weekends and as a form of a reward.

For the record, I do like McRoyal burgers but I hate the idea that being a good child will result in a field trip to a fast food restaurant. I am talking about kids under 15. Junior high kids are a different category. They are consumers already…

The minute it will get back to normal, I am going to think that this is a sane country.  

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4 Responses to “The Truth About BigMac”

  1. You should probably doubt the statements you read in the press a little bit more. Not that there´s no truth to the information about McD being seen as “better” place to eat, it´s just sort of old news and I really think it was rather the case couple of years ago. Things are changing – when you look at people at fast foods now, it´s just ordinary un-excited faces having their ordinary plastic titbits. Even the kids look rather bored and do their kids-things like screaming and running around, unless mommy buys them a Happy Meal with some toys in it. The company has not become a better place to eat. It just was seen like this in the past, like something cool and new. Not so much nowadays.

    And technically, we´re all consumers, no matter how old we are. There´s plenty of adverts targeted on children under 15.

    (Oh, and I like your blog, by the way:)

  2. I find it indicative of the economy in the CR, a place where folks earn very little and most items are pricey. Last week they stated that the metro is now more expensive in Prague than in NYC! HA, why would one from the west work for 50-60k crowns a month and be subjected to overpriced items? CR is not worth the price any longer….

  3. I have to laugh Philip, I’m sorry…you made me smile. I am a fifty year old guy who is working in the tech sector in Brno. As I have no clue where you hail from in the great ole’ USA, and have no clue as to your vast experience here in CR, I can’t adequately rebut you. I can tell you only this, about MY motivation for being here, in this awfully expensive, monetary-driven, repressive country. (Yes, that was sarcasm) I have traveled the entire USA (Yea dude, it’s true), and have lived in every region of “the colonies”. Before I came here, I had turned into the epitome of the angry, hostile, belligerent “old codger”. Life was just too hard, too fast, too draining, and full of BS on a momentary basis. There was a constant feeling of needing to drive harder to compete with both inflation, and “the Jones’ “. I began pining for my great escape from status quo, nearly ten years ago.
    I finally, realized that things were never going to improve, and actually were regressing to post-WWI era status. My wife is currently working in the States, and barely making enough to cover insurances for herself and our teenage daughter, and have still have gas money left over, much less having enough food to eat. Our house which was worth almost 200K a year and a 1/4 ago, is now not even selling for 110K. We will be in foreclosure very soon. My self-esteem started to demolish after I found I could not replace my “good job” anywhere after 6 months of unemployment. Since moving to CR, and working a “good job”, I have a really great sense of peace for a change. I know that my medical issues, which are many, are taken care of. C’mon, 30 Koruna for a copay! My transportation via public transit are supremely less than what I paid for two vehicles being driven to work, and maintained. Utilities are so significantly cheaper as well, comparatively. Dude, figure it out! I have a nice flat, and plenty of dough to stop for a pivo with my acquaintances after work, buy a great pair of shoes, see a show, and still pay for my necessities. I am no longer a competitor in “the rat race”. The little wheel doesn’t even spin nearly as fast any more, anyway. That’s the beauty of my expatriation. No one gives a **** who I am, what I drive, what I look like, or whether I’m making 50-60K. (Although I’m glad you are, don’t get me wrong)
    My Czech, Romanian, Tunisian, Russian friends ….wait..that’s my point, I guess. I have time for friends, and friends don’t cost me anything. Goods and services are definitely way over-priced on certain things, and way more so now, that Uncle Chaney and his boys have screwed the world stage. But I am still willing to pay more now for things that are important, even as I remember getting 38 Crowns to the dollar 6 years ago and paid 8 Crowns for a beer in a hospoda. My stress level is reduced to almost nil, I am far healthier, relaxed, and happier than EVER. And even though very FEW people I know are even coming close to making your meager, paltry 50-60K/mo., somehow, they eek out an existence, that they are highly content with. Wow, and on a typical 18K netto per month!My quality of life is far better, and I’m making under 45K at this point. I don’t understand why anyone from the west wouldwork for 50-60k crowns a month, who feels as adamantly about being subjected to overpriced items as you, would ever want to remain in this country! Look at page 8 of the following document and find a great place that your salary will go further: http://www.ubs.com/1/ShowMedia/wealthmanagement/wealth_management_research/prices_earnings?contentId=170298&name=PreiseLoehne_2009_e.pdf. May I suggest Vilnius, Warsaw, or Moscow. I am really not trying to be rude. I simply want to point out that you, Philip, even though prices are higher in CR than ever, are making a greater salary than is typical, and should be enjoying the comparative value of what your salary still buys you in this country, instead of focusing on the old crown to new crown devaluation. Respectfully wishing you the best.

  4. LOL. I find it funny that anyone looking at the real BigMac index would compare it to the Golden Arches Index anyway.

    Fast food more expensive then regular meals? NOOOOO Really??? I can feed a family of 6 (a really nice meal) on what the price of a moderate (and mostly unhealthy) meal for 2 at McD’s would cost me and I live in one of the middle income areas of the US. Why is it so hard to believe the same thing would exist in the CR? Come on, you’re going to have to work a little harder to convince me the CR isn’t a better place to be as I have family there also.

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