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McDonald’s is frying up a new strategy to win back budget-conscious consumers. The fast-food giant is considering a nationwide $5 meal deal, according to reports. This move comes as inflation continues to squeeze wallets, and customers search for better deals or cook their own meals at home.
While the $5 meal deal is still awaiting approval from franchise owners, it signals a shift in McDonald’s approach. The company is traditionally known for offering a variety of à la carte options, but bundled deals are becoming increasingly popular. This allows customers to get a complete meal at a predictable price point.
CFO Ian Borden spoke on offering bigger, cheaper burgers during a recent earnings call with investors: “Some of those consumers are just choosing to eat at home more often. I think consumers in 2024 are going to be much more focused on affordability. And that’s certainly what we’re going to focus on and emphasize.”
The proposed $5 meal could include an entree like a McChicken or McDouble, fries, a drink, and possibly even a side of chicken nuggets. This would provide a significant saving compared to purchasing each item separately. In Germany, they’re testing the McSmart; two burgers, fries, and a drink for 5.99 euros ($6.55).
Borden added: “We feel really confident about the positioning of our brand because value and affordability is core to who we are.”
“We feel really confident about the positioning of our brand because value and affordability is core to who we are.”
Ian Borden
McDonald’s isn’t stopping at the $5 meal deal. They’re also exploring other bundled offerings to cater to different appetites and budgets. These options could help McDonald’s compete with other fast-food chains that have already implemented similar strategies, including at sit-down restaurants like Chili’s and Applebee’s, both who have taken aim at the clown recently. The latter launched an ad campaign poking at McDonald’s and their “tiny fast food burgers” while introducing their own burger into the mix.
With rising food costs putting a strain on household budgets, McDonald’s is hoping these value-oriented deals will bring customers back through their doors. The chain has already seen the writing on the wall with negative traffic and sales this past quarter for the first time since posting record profits over the previous few years.
