McDonald’s ponders a $5 meal deal as cost-conscious consumers cut back on fast food
Searchin’ for a McDeal… and Ronald’s got five on it. McDonald’s is said to be cooking up a $5 meal deal as the fast-food heavyweight hopes to hook price-sensitive customers with a focus on affordability. The rumored special could include a McChicken or McDouble, four-piece nuggets, fries, and a drink. That’d be quite the deal because a McChicken alone can cost as much as $5.60. But franchise owners — who run about 95% of US McDonald’s — appear to be fed up with corporate’s affordability push.
Back for seconds: Earlier this year, McDonald’s reportedly tried (and failed) to get franchisees on board with a four-week promo for a $5 meal combo.
Unhappy Meal: As labor costs rise in states including California (see: $20/hour fast-food wages), owners may be worried about losing money on the offer.
Not so fast… A sizzlin’ deal could help boost same-store sales, which disappointed when the Golden Arches reported last month. McDonald’s isn’t the only fast foodie that’s seen customers with lower incomes ditch the drive-thru after pandemic price pumps. (FYI: fast-food prices rose 28% between 2019 and 2023, outpacing restaurants). Last quarter, sales slipped at Yum! Brands’ KFC and Pizza Hut, and earlier this year Wendy’s said people with lower incomes weren’t visiting as much.
Fast food isn’t just about speed… Convenience is a selling point, but so is price. And when that’s no longer as cheap, folks may find it less savory. In a February poll, a quarter of consumers earning less than $50K/year said they were cutting back on fast food. That could mean they’re eating at home more — a trend McD’s recently called out. It’s not just fast food: last week, Citi CEO Jane Fraser said shoppers with lower incomes were increasingly cautious with their spending overall.