McDonald’s is planning to launch a $5 meal promo in an effort to lure back customers who have been deterred by recent price hikes on its menu. The limited-time offer is set to begin on June 25 and will last about a month, offering a choice of either a McChicken, a McDouble, or four-piece chicken nuggets along with small fries and a small drink. The promotion, first reported by Bloomberg, required approval from franchise owners, who gave their consent this week. McDonald’s USA expressed the importance of offering meaningful value to customers, especially during a time when affordability is crucial.
The $5 meal promo comes in response to slower growth in foot traffic at McDonald’s restaurants as some customers are cutting back on fast-food dining due to price increases. Other fast-food chains have also raised menu prices significantly in recent years, citing rising labor and food costs as key factors. These price hikes appear to be particularly challenging for low-income Americans, with a survey showing that about 25% of people making under $50,000 are cutting back on fast food due to cost concerns. Casual dining restaurants like Applebee’s and IHOP are also feeling the impact of the absence of low-income customers.
During an earnings call, McDonald’s CEO emphasized the importance of affordability in keeping prices low to attract customers amid rising costs. The company, as the nation’s largest fast-food chain, is focused on providing value to customers through promotions like the $5 meal offer. While the $5 meal deal may not make McDonald’s a pioneer in the fast-food industry, it is seen as a strategic move to compete with other chains that have introduced similar value meal options in the past.
Wendy’s, for example, launched the 4 for $4 meal in 2015, which includes a small hamburger, four-piece chicken nuggets, small fries, and a small drink. In 2019, Wendy’s added the $5 Biggie Bag to its menu, offering customers a choice of a sandwich or four chicken nuggets, along with small fries and a small drink. McDonald’s franchise owners have expressed support for the $5 meal promo, acknowledging the importance of offering great value and affordability to customers during a challenging economic period.
Overall, McDonald’s is taking steps to address customer concerns about rising prices by introducing a $5 meal promo to attract back consumers who may have been deterred by recent price hikes. The company’s franchise owners have approved the new promotion, recognizing the importance of providing value and affordability to customers in a competitive market. With affordability at the forefront of their strategy, McDonald’s aims to regain customer loyalty and foot traffic at its restaurants through the limited-time $5 meal offer.
