McDonald’s Announces Deal To Bring Back Customers

May 16, 2024

This summer, McDonald’s is introducing a $5 meal bundle in an effort to win back customers who struggling with recent price increases. The bundle will include a choice of either a McDouble or McChicken sandwich, small fries, a small soft drink, and four McNuggets. However, the deal will only be available for one month starting on June 25, and not every McDonald’s location will offer it. Restaurants with higher labor and rent costs might opt out.

Some customers are fuming that the deal is temporary and that not all stores will carry it. One person tweeted that a similar meal cost around $3 or $4 just a few years ago. Despite McDonald’s making a $14.5 billion profit last year, the promotion is being subsidized by Coca-Cola and McDonald’s franchisees, who operate 90% of the restaurants. Coca-Cola is contributing $4.6 million to support the deal, according to the Wall Street Journal.

Social media users have expressed their frustration, targeting McDonald’s parent company rather than the franchisees, many of whom are small business owners. One user on X (formerly Twitter) suggested that McDonald’s should lower its food prices to attract more customers, noting that the company’s profits have nearly doubled and its net profit margin has increased from 20% to 33% over the past decade.

This $5 meal bundle marks the first time in decades that McDonald’s has introduced a nationally priced meal deal. The franchisees approved the deal last week, hoping to bring back customers even if it means they have to cover part of the costs themselves. A McDonald’s spokesperson stated, “We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising.”


CEO Chris Kempczinski emphasized the importance of affordability during a recent earnings call, as McDonald’s has seen a decline in sales, especially among lower-income customers. This new deal aims to attract those who have been priced out by rising menu prices, with some items now costing as much as $19 for a Big Mac meal.

Fast food chains like McDonald’s, Wendy’s, and Starbucks have noticed that lower-income customers are choosing to eat more meals at home due to the cost-of-living crisis. This has forced these companies to offer more significant promotions to draw customers back to their restaurants. McDonald’s, which relies heavily on lower-income customers, has seen its global sales growth slow for the fourth consecutive quarter.

CEO Kempczinski acknowledged that all income groups are looking for value, not just lower-income customers. In response, more upscale restaurants like Chili’s and Applebee’s are also offering burger meal deals for around $10 to attract fast food customers. Recent research has shown that McDonald’s prices have risen significantly over the past ten years, with many menu items doubling in price. In some locations, a Big Mac meal can cost as much as $17.59 before tax.

 

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