Why it matters that people pay more for a Big Mac in NJ

Big Macs sold in the Garden State are about 7% more expensive than the national average.

That’s according to a NetCredit analysis of fast food chains’ prices.

The cheapest Big Mac in the country is now being sold in Oklahoma for $3.49 while in New Jersey, the staple burger price ranges typically from $5.19 to $6.49, according to McCheapest.com.

The most expensive Big Mac in the United States will cost you $8.09 in Massachusetts, a little bit more than it costs in the New Jersey borough of Paramus, where the most expensive Big Macs in the state are sold for $7.89.

Why are Big Macs more expensive in New Jersey?

Every chain sells its products with different price tags across the country, primarily because of varying minimum wage rates, commercial property prices, gas prices, health insurance rates and other elements that vary in price and affect operations cost.

But in the case of McDonald’s, according to the company itself, 90% of its shops are “independently owned and operated by franchisees who have the ability to set their own prices.”

And pricing doesn’t seem to be driven solely by operation costs. Fast food chains tend to price their product according to how much people are willing to pay, David Klyman, a financial strategist at Klyman Financial told HuffPost.

“It’s not often about the value of a burger but what people are willing to pay for that burger,” Klyman said.

So it seems that New Jerseyans are willing to pay more a Big Mac than people from other states. But why?

The price of a Big Mac is a more serious topic of conversations than many people would imagine.

In 1986, The Economist magazine created the Big Mac Index, a gauge that compares Big Mac prices throughout the world as a way to measure purchasing power within a location. The index soon became a benchmark used by many economists as it would provide a relatively accurate snapshot of how much people can afford in a certain location.

So, if Big Macs are more expensive in New Jersey, that might be driven by how much money New Jerseyans have to spare.

Still that doesn’t mean that a McDonald’s in an affluent town will be selling the most expensive Big Macs, since wealthier people don’t tend to eat fast food, Klyman told HuffPost.

How much do Big Macs cost in New Jersey?

Taking everything into account, judge for yourself.

Here’s how the Big Mac Index looks in New Jersey, according to McCheapest.com:

Paramus, Bergen County- $7.89 Asbury Park, Monmouth County$6.49

Wildwood, Cape May County$6.29

Cherry Hill, Camden County- $5.79 Toms River, Ocean County- $5.19

How much more expensive are fast-food chains in NJ?

As per the NetCredit analysis, Subway takes the crown for the most inflated fast food prices in New Jersey. On the other hand, Pizza Hut stands with the lowest fast food price in comparison to the national average.

Here’s how much more expensive – or cheaper – fast-food chains are in New Jersey.

Burger King - 10.62% more expensive

KFC - 5.21% more expensive

McDonald’s - 7.30% more expensive

Popeyes - 8.64% more expensive

Subway - 11.78% more expensive

Pizza Hut - 5.46% cheaper

Taco Bell - 0.33% cheaper

BILL GOODYKOONTZ/THE REPUBLIC The McDonald’s Double Big Mac, just before The Arizona Republic’s Bill Goodykoontz ate it.