Amid soaring fast food prices fueled by “Bidenomics” burger behemoth McDonald’s is reportedly gearing up to unveil a new $5 discount meal in a bid to attract inflation-battered customers. The move comes as the once-affordable fast food industry has become increasingly out of reach for many lower-income consumers.
A source with knowledge of the plan told Bloomberg that the proposed $5 deal may include a McChicken or McDouble sandwich fries and a drink. The initiative underscores McDonald’s CEO Chris Kempczinski’s acknowledgment that the company must be “laser-focused on affordability” in light of disappointing financial results.
So to be clear after doing away with their $1 $2 $3 value deals #McDonalds is going to bring back the same value deals menu at the super low price of $5 $6 and $7
What a deal!!! https://t.co/z9bfJ0iDYM pic.twitter.com/rXDKqFdFjE
— Ronnie Spangler (@Mar4L) May 12, 2024
But the plan may face resistance from McDonald’s franchisees who operate nearly all of its U.S. restaurants. Earlier this year the company failed to secure operator support for a similar $5 meal promotion with franchisees expressing concerns about profitability especially in states like California where the fast food minimum wage recently jumped to $20 hourly.
To alleviate these concerns McDonald’s has reportedly tapped funds from Coca-Cola to help mitigate potential losses for franchise owners. The company’s previous attempt to gain franchisee backing for the value meal deal fell short several months ago.
McDonalds $5 meals under Bidenomics pic.twitter.com/ZEYFg1tpBu
— Matthew Brown (@mattb1x) May 11, 2024
Reactions to the proposed $5 offering have been mixed on social media with some users questioning its appeal in the current market. According to FinanceBuzz McDonald’s prices have doubled since 2014 outpacing most of its fast food competitors. This trend combined with stubborn inflation during the Biden years has priced out many budget-conscious customers.
As the iconic fast food chain seeks to navigate the challenging economic landscape and regain market share among value-driven consumers the fate of its $5 meal plan will depend on striking the right balance between customer appeal and franchisee buy-in. Given McDonald’s massive scale and brand power even a small uptick in price-sensitive diners could provide a significant boost to its flagging fortunes.
