A Big Mac went from R7.00 to R51.90 in South Africa

The price of a Big Mac was R7.00 when McDonald’s opened its first restaurant in South Africa in November 1995. Today, it costs R51.90.

McDonald’s opened its first restaurant in South Africa in November 1995. It was located in Blackheath, Johannesburg, and was an instant hit.

The arrival of the United States hamburger giant was seen as a symbol of the “new South Africa” following the end of apartheid.

South Africans loved getting the iconic fast-food brand, and there were long queues at the Blackheath McDonald’s to get a Big Mac and other classic burgers.

In 1995, a Big Mac cost R7.00. It was widely seen as a reasonable price for a burger, and it competed favourably against other fast food restaurants.

Over the years, the price of a McDonald’s Big Mac has increased in line with food inflation and other factors that affect costs.

Today, a standalone Big Mac costs R51.90. It remains reasonable compared to similar products from other prominent fast food restaurants.

A King Steer burger, which is similar to a McDonald’s Big Mac, costs R54.90. Like a Big Mac, it also comes with two ground beef patties.

A Wimpy Double Quick Bite burger, which also features two beef patties, costs R59.90, slightly more expensive than those offered by McDonald’s and Steers.

An original Spur burger meal costs R119.90. However, this is not a fair comparison as the Spur burger comes with chips and onion rings.

These prices indicate that the price of a McDonald’s Big Mac aligns with that of its main competitors in South Africa.

This raises the question of whether the price increase from R7.00 to R51.90 aligns with other price increases in South Africa.

Big Mac Index and prices in South Africa

The iconic McDonald’s Big Mac is so iconic that it has made its way into the financial world as a measure of currency strength.

The Big Mac Index, created by The Economist magazine in 1986, is one of the most widely quoted economic indicators in the world.

It is an informal and humorous way to measure the Purchasing Power Parity (PPP) between currencies.

The Big Mac is used as that “identical basket of goods” because it is sold in over 100 countries and is a standardised product.

The index calculates an Implied Exchange Rate by simply dividing the price of a Big Mac in one country by the price of a Big Mac in another.

If a Big Mac costs R50 in South Africa and $5 in the US, the implied rate is R10.00 per $1. If the actual rate is R17.00 per $1, the rand is considered highly undervalued.

The Economist’s Big Mac Index shows that the South African rand is one of the most undervalued currencies in the world. The latest Big Mac comparison shows that it is 50% undervalued when compared with the US dollar.

When it comes to inflation, the Big Mac’s price increased more than inflation over the last 30 years.

South Africa’s average annualised inflation rate between 1995 and 2025 was 5.78%, which means a Big Mac would have cost around R36.00 if adjusted for inflation.

However, the price of R51.90 means that the price increased by an annualised rate of over 7.00%, well above inflation.