Tesco’s Meal Deal Price Hike: Greed or Just Business as Usual?
Ethan Shenker If you’ve ever grabbed lunch in the UK, chances are you’ve relied on the famous Tesco Meal Deal. For a few pounds, you can get a sandwich, a snack, and a drink—quick, cheap, and reliable. But prices have been creeping up. What used to cost £3.60 now sets you back £3.85. That’s the third price rise in five years. So what’s going on? Is Tesco squeezing customers for profit, or is it just trying to survive rising costs? Economics can give us a few ways to think about it. Why Tesco Might Be Raising Prices: Profit Preservation Tesco’s Meal Deal isn’t just about lunch…it’s a loss leader . That means Tesco probably doesn’t make much (if any) profit from it. Instead, it’s a lure: you come in for a Meal Deal, and while you’re there, you’re likely to buy other higher-margin items. But running a business isn’t free. Over the past few years, costs have been going up: ● Ingredients and packaging: Global supply-chain disruptions, shipping fee spik...