McDonald‘s is attempting to woo back lower-class customers by extending their $5 value meal until December in the majority of US regions.
About 80% of local markets have chosen to extend the value meal agreement until December based on votes cast by franchisees. There are still votes on extensions, so more places might be included in the upcoming weeks.
Five dollars gives you a five-piece chicken nugget platter, small fries, a McDouble or McChicken sandwich, and a small soft drink.
In addition to the value bundle, the owners will also be running local promotions in the upcoming weeks and months, according to the firm. There will be deals on the McDonald’s app as well.
“Because we’re dedicated to keeping our pricing as low as possible alongside our franchisees, we’re stepping up with even more ways to save,” stated Joe Erlinger, President of McDonald’s U.S., in a statement regarding the meal’s expansion until December.
This summer, the restaurant industry put a strong emphasis on value as chains like McDonald’s, Burger King, and even Starbucks tried to entice customers with lower prices. Restaurant patrons have reduced their expenditures following years of sustained inflation.
Executives informed restaurant operators and analysts that McDonald’s will concentrate on finding ways to entice customers back with promotions after the business reported falling same-store sales for the second quarter of July. They also pushed for an extension of the $5 value meal. After its initial four-week run in June and July, 93% of restaurants decided to keep it on the menu, and the promotion ran until the end of August.
Erlinger stated that McDonald’s had trouble persuading customers that their food was affordable in the most recent quarter and that he anticipated “industry and competitive challenges” to persist throughout the year in a memo sent to the U.S. system that CNBC was able to receive following the July earnings announcement. Erlinger urged operators to focus on gaining ground for the upcoming year, stressing that “channeling a long-term mindset is crucial” to the success of the business.
He stated at the time that “it is possible to reverse the narrative and re-establish our position as the leader on value and affordability, but it cannot be done overnight.” “It will occur through consistent, well-planned actions that demonstrate to the client that we have their back.”
According to Erlinger’s July memo, low-income customers responded favorably to the $5 lunch trial, and opinions about the company’s worth had begun to shift.