McDonald’s still sets the pace in the fast-food industry.
The industry leader had a big time trick up its sleeve.
And McDonald’s just made one huge announcement that no one saw coming.
McDonald’s announces new $5 value meal
Even McDonald’s is feeling the pinch from Bidenflation.
Prices at McDonald’s are up 30 percent since 2019.
A Lending Tree survey found that 76 percent of Americans now consider eating fast food a luxury, thanks to rising prices.
Yet 54 percent said they eat fast food once or twice a week.
McDonald’s is trying to meet their customers where they are.
That’s why the company is introducing a $5 value meal promotion that will run through the month of June.
McDonald’s $5 value meal will include the choice of a McChicken or a McDouble, as well as four nuggets, fries, and a drink.
“We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today,” a statement from McDonald’s announcing the promotion read.
Company executives admitted rising inflation was at the heart of this new promotion.
“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the company’s April 30 earnings call.
“Great value and affordability have always been a hallmark of McDonald’s brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it. This is the power and promise of the Golden Arches,” McDonald’s owner and operator and chair of the Operators National Advertising Fund John Palmaccio declared.
McDonald’s previously tried to get this initiative off the ground, but franchise owners worried it would be a money loser.
To help ease resistance, McDonald’s got Coca-Cola to put up money to offset any losses.
McDonald’s competitors follow suit
When McDonald’s introduced the extra-value meal in the 1990s, it wasn’t long before Wendy’s and Burger King followed suit.
The same pattern has held here.
As soon as McDonald’s announced a $5 value meal, Burger King tried to one-up them.
Burger King’s $5 meal would feature the choice of three sandwiches as opposed to two, nuggets, fries, and a drink.
“Regardless of their plans, we are moving full speed ahead with our own plans to launch our own $5 value meal before they do — and run it for several months,” a memo signed by Burger King’s President of Operations in the United States and Canada, Tom Curtis, read.
Every American and every sector of the economy is feeling the pinch from Joe Biden’s inflation.
Fast food chains are getting creative with their deals to make sure customers keep coming through the doors.
