For the past year, McDonald’s has been quietly conducting a culinary experiment in the heart of New York. Unbeknownst to most, the fast-food giant had been testing a new $5 value meal deal in select locations across the state. This…
When you buy something through one of the links on our site, we may earn an affiliate commission.
For the past year, McDonald’s has been quietly conducting a culinary experiment in the heart of New York. Unbeknownst to most, the fast-food giant had been testing a new $5 value meal deal in select locations across the state. This move aimed to address a growing concern: inflation’s impact on customer wallets.
While whispers of a potential $5 meal deal swirled in 2023, franchisees reportedly pushed back on the national roll-out but McDonald’s wasn’t deterred. They decided to take the concept to New York, a state with a significant cost of living variation, for a year-long test run.
Joe Erlinger, McDonald’s US president said last Wednesday: “It was actually the idea of a group of franchisees. “Those locations have seen great success in building their business and building the baseline of their business.”
The test offered a simple yet enticing value proposition: a choice between a McDouble or McChicken sandwich, paired with small fries and a drink, all for just $5. This price point represented a significant saving compared to regular menu prices, particularly in New York City, where meals could easily exceed $10.
So, how did the year-long experiment fare? According to reports, the results were positive. The $5 meal deal proved popular with customers, particularly budget-conscious consumers who might have otherwise opted to cook at home. And it just launched nationwide. There are a few caveats, however. Some franchisees aren’t participating in offering the deal due to high rents, and labor costs. Customers have also reported the price being higher than the advertised $5, some totaling closer to $7.
The long-term impact of the $5 meal deal, and how customers will respond to it’s short time on the menu is the question now. And will McDonald’s year-long experiment in New York prove that value can still be a recipe for success, even in a challenging economic climate? We say, you bet.