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.
