McDonald’s seems to be struggling to win customers one customer at a time.
McDonald’s has come under fire in recent years for soaring prices, less revenue from low-income customers and fewer customers at its stores. As a result, CEO Chris Kempczinski said during a first-quarter earnings call in late April that McDonald’s must “focus on affordability.”
McDonald’s has since expressed interest in promising price cuts and exploring further ways to win back customers, which could include $5 meal deals, according to reports.
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Bloomberg and CBS reported that an earlier bid to introduce a $5 meal deal, among other things, was rejected by the franchise operator, but is now being re-offered with some new conditions.
Here’s what we know about McDonald’s plans to become more affordable, and what’s next for the fast food chain.
McDonald’s focuses on cost.CEO says McDonald’s will focus on affordability in 2024 amid backlash against $18 Big Mac
Reports that McDonald’s will launch a $5 meal sale
The $5 meal deal reportedly allows customers to choose between a McChicken, a McDouble, or a four-piece Chicken McNugget with fries and a drink.
Bloomberg reported that McDonald’s is still working on plans to develop partnerships with franchise owners. It’s still unclear when and where this meal will be introduced, as McDonald’s deals may vary by region.
McDonald’s did not immediately respond to USA TODAY’s request for comment.
McDonald’s CEO talks about affordability
McDonald’s CEO Kempczinski emphasized affordability in a recent earnings call.
“Going into 2024, we’re probably going to see a lot more focus on what I would call affordability,” he said in February. “The battleground is certainly low-income consumers,” he said, noting that meals at his home have become more affordable.
He continued to promote affordability during his April earnings call. “Consumers are facing higher prices for their everyday spending and are becoming more discerning about every penny, which is putting pressure on the industry,” Kempczinski said. “It is essential that we continue to make affordability our top priority for our customers.”
McDonald’s meal boxes, local limited sale
One of McDonald’s location-based deals went viral online in March. One Texas mother shared how she fed her family of five with $12 meal boxes she purchased from the chain.
“Here you get two cheeseburgers, but you get four small fries, 10 pieces of chicken nuggets, and two Big Macs. All for $12,” she said in the video. In another video, she shows a receipt that says “MickeyD’s Dinner Box” (priced at $12.19). Her total after taxes came to $13.20, but commenters from across the country pointed out that the price was regional.
Some states reported similar meal box sales ranging from $18.99 to $35.99. McDonald’s told USA TODAY that franchise owners have the flexibility to set their own prices and create promotions to drive demand for their restaurants. These promotions may vary by restaurant. Shareable bundle deals generally vary by location, and fans can access them through the app.
McDonald’s expands with new stores from CosMc spin-off
In December, McDonald’s announced plans to open 10,000 more restaurants around the world by 2027, 900 of which will be in the United States.
The company also announced ambitious goals for MyMcDonald’s Rewards, saying it wants to grow from 150 million members to 250 million 90-day active users by 2027.
In addition to this expansion, McDonald’s is also investing in a new spin-off business called CosMc’s, which has so far proven successful for the chain.
This retro small restaurant is McDonald’s first foray into the beverage-driven market, offering funky, customizable drinks and snacks. The first store in Illinois had hours-long lines on opening day and exceeded the average McDonald’s traffic during his first month. A second store opened in Dallas earlier this year.
The fast food giant has promised to open 10 more stores by 2024, but did not initially specify exact locations outside of the “Dallas and San Antonio metropolitan areas.”
Contributor: Gabe Hauari
