Tesco, Britain's biggest supermarket group, has hiked the price of its popular lunchtime 'meal deal' for the first time in over ten years as it is forced to respond to rampant cost inflation.
The grocer said on Friday the price of the deal, which typically brings together a sandwich, a packet of crisps and a soft drink, will from 24 October go up from £3 ($3.34) to £3.40 for members of its Clubcard loyalty scheme.
Tesco said over 70% of its customers currently use a Clubcard when buying a lunchtime meal deal.
The price of the deal for those without a Clubcard will go up from £3.50 to £3.90.
Food Inflation
Shoppers have been hammered by rising food inflation, which hit a record 13.9% in September, according to industry data.
Tesco, which is facing extreme cost headwinds, particularly energy, labour and currency, says it is "inflating a little bit less and a little bit later" than competitors.
Earlier this month it forecast full-year profit at the lower end of its previous guidance, blaming uncertainty over how consumer spending will evolve amid a worsening cost-of-living squeeze.
The British retailer also unveiled plans to halve food waste in its own operations by 2025 – five years ahead of the timeline outlined by the United Nations’ Sustainable Development Goals.
Tesco said a number of meal combinations would cost more than £6, if purchased separately.
In July, McDonald's MCD.Nhiked the price of its cheeseburger for the first time in 14 years.
News by Reuters, edited by ESM. For more retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
