McDonald’s is considering launching a $5 value meal in an effort to win customers back who have been staying home because of inflation.
ABC’s Faith Bouay reports that the average price of a quarter pounder in McDonald’s in parts of the country has more than doubled in just the last 10 years.
Rising prices are forcing customers to turn to cheaper alternatives and now the golden arches are reportedly looking at that potential value meal deal to try to win them back.
The fast food giant McDonald’s is hoping to flip the growing backlash over rising menu prices. They said that a hash brown, one of those breakfast hash browns, are $3 now. You spend $3 to get two double cheeseburgers and make your own chicken for that price! The burger chain is seeing its customer base burdened by inflation and now shying away from its restaurants.
Double Trouble: Rising Costs Force Customers to Cut Back
All prices are up, making customers question the point of even going to McDonald’s anymore. The cost of food away from home has increased by 4.2% compared to last year.
McDonald’s quarterly sales are dipping for the first time in 2 years, just months after Taco Bell, KFC and Starbucks also reported weaker than expected profits.
Low-income consumers are really feeling the pinch right now and maybe they are not necessarily eating at restaurants. Bloomberg is reporting that Executives at the golden arches are now floating the idea of a $5 meal deal which would rival Wendy’s $5 biggie meal as well as Burger King’s two for $5 deal.
The $5 Battleground: McDonald’s Takes Aim at Wendy’s and Burger King
Burger King. McDonald’s hasn’t had a national promotion in recent years, forcing individual franchise owners to cut prices on the local level.
Now it’s those franchise owners concerned about losing more money who would need to sign off on the potential $5 value meal deal. A previous attempt to get franchisees behind this actually failed, but they are trying again.
Finding the Balance: McDonald’s Seeks Affordability Without Hurting Profits
McDonald’s is not commenting on the potential value meal deal, however they do tell ABC news that while local franchise owners set their own menu prices, the company continues to work with them to try to find a balance between pricing and affordability and also getting aggressive with deals like the $5 value meal when needed.
