To combat slowing sales and customers’ frustration with high prices, McDonald’s plans to introduce a $5 meal deal in the U.S. next month. This deal would include a four-piece McNugget, small fries, a small drink, and either a McDouble burger or a McChicken sandwich for $5 in most areas. The promotion is set to begin on June 25 and will be advertised nationally, with some stores potentially charging more in higher-cost regions like California or Hawaii. While McDonald’s did not confirm the upcoming deal, the company stated last month that it was looking to increase deals to address sluggish customer traffic in certain markets.
The $5 meal deal will offer a substantial discount from the individual list prices of the items included in the limited-time promotion. For example, one McDonald’s location in Michigan priced the four items at $9.66 when sold separately. Rising fast food prices in recent years have been attributed to various factors such as increased costs for labor, food, and paper products. According to Technomic, a restaurant data firm, the amount spent per person per visit at U.S. fast food restaurants has increased by 25% between the first quarter of 2022 and the first quarter of 2024, from $12 to $15.
McDonald’s CEO Chris Kempczinski acknowledged earlier this year that the company was experiencing decreased visits and reduced spending from customers earning less than $45,000 per year. As inflation has eased in grocery prices, more individuals are opting to dine at home, leading to flat or declining fast food traffic in key markets like the U.S., Canada, and the United Kingdom. Kempczinski highlighted the importance of offering value to all income groups, as consumers are becoming more discerning in how they allocate their spending. The company’s competitiveness with other chains also relies on the introduction of nationwide deals emphasizing value.
During a recent conference call with investors, Kempczinski emphasized the need for McDonald’s to keep up with its rivals by offering compelling value propositions to attract customers. Other chains, like Starbucks, have also noted slowing sales and are taking measures to address declining consumer confidence. Starbucks announced plans to extend its Rewards app to non-members in July to allow them to access the deals it offers. As the fast-food industry continues to navigate challenges related to pricing and consumer behavior, McDonald’s and its competitors are adapting their strategies to appeal to a broader range of customers.
