Fast food giant McDonald’s is set to roll out a new meal deal this summer, as it attempts to win back customers who have been turned off by its recent price hikes. The $5 bundle, which will be available from June 25, will include a choice of either a McDouble or McChicken sandwich, small fries, a small soft drink, and four McNuggets. However, this deal will only be available for a limited time and not all McDonald’s locations will be offering it due to varying labor and rent costs.
The company has faced backlash from some customers who feel that the prices at McDonald’s have become too high. One person who criticized the meal deal on social media commented, “That same meal was probably $3 or $4 a few years ago.”
This sentiment is also reflected in the recent profits of the company, with McDonald’s making $14.5 billion in profit last year. Despite this, the deal is being subsidized by Coca-Cola, the company’s longtime drinks provider, and the franchisees who run the majority of McDonald’s restaurants.
Many customers have directed their frustrations towards the parent company, rather than the franchisees who are small business owners. One person on social media wrote, “It looks more like corporate greed to me” in response to a report of McDonald’s doubling its prices in the past decade. The company’s profits have also increased significantly, with their net profit margin rising from 20% to 33%. This has led to criticism of McDonald’s for being too focused on profits rather than offering affordable prices for their customers.
The $5 meal bundle is significant as it will be the first national meal deal offered by McDonald’s in several decades. Most McDonald’s locations are run by franchisees, who set their own prices based on their individual costs. This can vary greatly, with some areas having higher labor and rent costs. However, in a recent vote, the franchisees unanimously approved the deal in an effort to attract more customers. It is not clear if McDonald’s is also contributing funds towards the promotion.
In response to the new meal deal, a McDonald’s spokesman stated, “We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising.” The company’s CEO, Chris Kempczinski, also emphasized the importance of affordability in a recent earnings call, stating that the company has to be “laser-focused on affordability.” This comes after sales have slipped, particularly among lower-income Americans.
The $5 meal bundle is a strategic move by McDonald’s to win back customers who have been deterred by the chain’s steep menu prices. With the cost-of-living crisis affecting many lower-income individuals, there has been a trend of people opting to eat more meals at home rather than at fast food restaurants.
As a result, companies like McDonald’s, Wendy’s, and Starbucks are offering steeper promotions in an attempt to attract these customers. McDonald’s, which has a higher exposure to the lower-income market, has seen its global sales growth slow for the fourth consecutive quarter.
This trend of fast food chains offering more affordable meal deals is not unique to McDonald’s. Other chains, such as Chili’s and Applebee’s, have also begun to offer burger meal deals for around $10 in order to compete with fast food restaurants.
Additionally, research has shown a significant increase in McDonald’s prices over the past ten years, with many menu items now costing double what they did a decade ago. However, McDonald’s points out that their franchisees set their own prices, so the company has limited control over pricing.
