McDonald’s is seemingly trying to attract customers with one deal at a time.
In recent years, McDonald’s has faced criticism for rising prices, resulting in lower revenue from lower-income consumers and a decrease in foot traffic in stores. As a result, Chief Executive Officer Chris Kempczinski said in a late April first-quarter earnings call that McDonald’s has to be laser-focused on affordability.
According to reports, McDonald’s has promised a price reduction and expressed interest in exploring other ways to win back customers, including $5 meal deals.
A previous proposal to introduce a $5 meal deal was rejected by franchise operators, according to Bloomberg and CBS, but it is now being re-proposed with some new terms.
Here’s what we know about McDonald’s plans to become more affordable, and what’s next for the fast-food chain.
McDonald’s $5 meal deals are coming, reports say
The $5 meal deal reportedly offers a choice of a McChicken, McDouble, or four-piece chicken McNuggets with fries and a drink.
According to Bloomberg, McDonald’s corporate is still working with franchise owners to implement the deals. It’s not yet clear where or when the meal will be introduced because McDonald’s deals are regional.
McDonald’s CEO on affordability
McDonald’s CEO, Kempczinski, has stressed the importance of affordable pricing in recent earnings calls.
“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability,” he said in February. He noted that eating at home has become more affordable and said “the battleground is certainly with that low-income consumer.”
He continued to emphasize affordability during an April earnings meeting. “Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry,” Kempczinski said. “It’s imperative that we continue to keep affordability at the forefront for our customers.”
McDonald’s meal boxes, local deals
One of McDonald’s location-based deals went viral in March as one Texas mom shared a $12 meal box she got from the chain that she said fed her family of five.
“There’s two cheeseburgers in here, but there are four small fries, ten-piece chicken nuggets and there’s two Big Macs. $12 y’all,” she said in the video. In another clip, she showed her receipt, which read “MickeyD’s Dinner Box” at the price of $12.19. Although commenters from across the U.S. pointed out that the price was regional, the total amount came to $13.20 after tax.
In their states, some reported that meal box deals were selling for $18.99 to $35.99. McDonald’s told USA TODAY that franchise store owners set their own prices and have the flexibility to create promotions that will drive demand in their restaurants. These promotions may vary by restaurant. Generally, shareable, bundled deals vary by location, and fans can access them through the app.
McDonald’s expands with new restaurants, CosMc’s spinoff
By 2027, McDonald’s plans to open an additional 10,000 restaurants worldwide, with 900 of them set to open in the U.S.
MyMcDonald’s Rewards was announced to have an ambitious goal by the company, with the goal of expanding its membership from 150 million to 250 million 90-day active users by 2027.
In addition to this expansion, McDonald’s has also made an investment in a new spin-off venture called CosMc’s, which has been successful for the company thus far.
McDonald’s retro small-format restaurant is McDonald’s first venture into the beverage-led market, offering customizable drinks and small bites. The first location in Illinois saw lines lasting hours on its first day and traffic surpassing that of an average McDonald’s in its first month. Dallas saw the opening of a second store earlier this year.
The fast-food giant promised 10 more locations opening in 2024, though it did not initially specify where beyond the Dallas and San Antonio metro areas.
Overall, McDonald’s 5 meal deal is a win-win for both the company and its customers. It allows McDonald’s to provide affordable options for its loyal patrons, while also giving customers the opportunity to enjoy a delicious meal at a great value. So next time you’re on the go and craving a satisfying meal, be sure to check out McDonald’s 5 meal deal – you won’t be disappointed.
